Running a business today in this technological age is quite a challenge. In the absence of foresight, businesses can flop in no time. The only solution to safeguard business is writing business plan that has adequate strategy and control measures in place.
So how do you put together a well-thought out and a well-researched plan?
Before charting out your venture you must understand some key issues.
Firstly remember, there is no jump-start platform in any business venture. When you evaluate the feasibility of your proposal you need to be objective, critical and unemotional.
Ask yourself the following questions.
• Is there a market for my services and products?
• Does my staff have the skill set to make my business a success?
• Will my venture make me a profit?
To answer the above questions it is essential that you get down to writing a business plan which will prepare
a road map for running the business and making profits.
In short, writing a business proposal will:
• Identify opportunities and prevent costly lapses
• Develop operating and selling strategies
• Create budgets and show projections for future outcomes.
Any business is finances and funding all the way - while starting, operating and selling.
Such a plan needs a sound financial proposal for success. It will help you to:
• Determine the capital you need
• Forecast profitability and return on investment
• Project cash flow, available liquidity and the ability of the business to repay debt
All the above points may look pedantic, or rather generic. So for a change let us get down to what your plan must not contain.
Out-of-date financial information – All your calculations must be based on current interest rates and realistic industry comparisons. Bad or incorrectly presumed data will hurt your chances of funding. Substantiate all the assumptions you make by citing dependable references.
Too much optimism – If you do not consider pitfalls and negatives, your plan will look too rosy for anyone to believe. Make it look realistic by jotting down your perception of threats.
Generalized strategies and campaigns – People are fed up reading “we have world class state-of-the-art technology with the lowest price in the market”. Too many businesses use such phrases too often. While writing a business plan, you must not think that the reader isn’t as smart as you are; so write down all the important details.
Making the business owner appear uncommitted – The plan must not appear as if the owner does not have anything at stake. The lender will surely expect the entrepreneur to invest some capital in the business.
The owner must be personally willing to guarantee the loans.
Another important factor is to avoid too much focus on collateral – even on cash secured loans. Any business must eventually produce adequate cash flow to enable repayment of loans.
When you conceive writing a business proposal, prepare an outline first. The overall document must be composed of the following three parts.
1. Description of the business
2. Financial data
3. Supporting documents.
Finally, aim to make your business plan look good. Put your efforts where you are likely to get the most rewards. There is no excuse for shoddy work.
So how do you put together a well-thought out and a well-researched plan?
Before charting out your venture you must understand some key issues.
Firstly remember, there is no jump-start platform in any business venture. When you evaluate the feasibility of your proposal you need to be objective, critical and unemotional.
Ask yourself the following questions.
• Is there a market for my services and products?
• Does my staff have the skill set to make my business a success?
• Will my venture make me a profit?
To answer the above questions it is essential that you get down to writing a business plan which will prepare
a road map for running the business and making profits. In short, writing a business proposal will:
• Identify opportunities and prevent costly lapses
• Develop operating and selling strategies
• Create budgets and show projections for future outcomes.
Any business is finances and funding all the way - while starting, operating and selling.
Such a plan needs a sound financial proposal for success. It will help you to:
• Determine the capital you need
• Forecast profitability and return on investment
• Project cash flow, available liquidity and the ability of the business to repay debt
All the above points may look pedantic, or rather generic. So for a change let us get down to what your plan must not contain.
Out-of-date financial information – All your calculations must be based on current interest rates and realistic industry comparisons. Bad or incorrectly presumed data will hurt your chances of funding. Substantiate all the assumptions you make by citing dependable references.
Too much optimism – If you do not consider pitfalls and negatives, your plan will look too rosy for anyone to believe. Make it look realistic by jotting down your perception of threats.
Generalized strategies and campaigns – People are fed up reading “we have world class state-of-the-art technology with the lowest price in the market”. Too many businesses use such phrases too often. While writing a business plan, you must not think that the reader isn’t as smart as you are; so write down all the important details.
Making the business owner appear uncommitted – The plan must not appear as if the owner does not have anything at stake. The lender will surely expect the entrepreneur to invest some capital in the business.
The owner must be personally willing to guarantee the loans.
Another important factor is to avoid too much focus on collateral – even on cash secured loans. Any business must eventually produce adequate cash flow to enable repayment of loans.
When you conceive writing a business proposal, prepare an outline first. The overall document must be composed of the following three parts.
1. Description of the business
2. Financial data
3. Supporting documents.
Finally, aim to make your business plan look good. Put your efforts where you are likely to get the most rewards. There is no excuse for shoddy work.
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