Every successful business starts with a plan.
Regardless of the industry, every business owner needs a plan. The business plan is key to identifying a company’s goals with details on its strategy in place.
Of course, the plan is a factor in how successful companies will be at securing financing from lenders, investors, and other stakeholders. Given its importance, we’re outlining the key steps that go into creating one.
Gather Supporting Information
The typical things included in a business plan are the company name, a description of the business (and what makes it different from competitors), an HR plan, a marking plan, an analysis of financial needs, financial data, and the company’s organizational or legal structure.
But, for it to be considered a strong plan, all of these details need to be backed up with documentation and proof (from secondary and primary sources).
Secondary sources are facts like statistics and trends that come from trusted organizations. Places like government bodies, universities, think tanks, industry publications, and associations are all good places to look. But, as it should be obvious, these stats need to be relevant to the market, target customer, and your plan.
Additionally, you’ll also want to include primary sources. Primary sources are any first-hand statistics, data, or research gathered by yourself. So, think of things like surveys, interviews, and focus groups that provide insight into the target customer that will strengthen your plan.
Be Clear with Your Plans
Another key part of a business plan is its goals. This is especially important when it comes to financial plans and potential growth. That’s because lenders will need to see this projection in order to gauge the health of a company and its future.
So, for this, we suggest being as clear as possible about where you intend to take the company. To do this, be clear with the amount of capital you’ll need, what your cash flow targets are, and exactly when you plan to hit them.
Calculate Conservatively
When it comes to creating a business plan, you will need to include your financial projections. But, for this step, we suggest calculating as conservatively as possible. For this, head through current accounts and budgets to determine the business’ health. But keep in mind that any numbers that are stated should be conservative, and not boosted to make the business look good. Otherwise, projections on the higher end can get you in trouble (especially with lenders and stakeholders) if they don’t work out.
Discuss Payout Options
No business plan is complete unless it stipulates payout options. That’s because some investors might not want to be involved in the business’s daily operations while others will want to be more hands-on. Either way, you will want to be clear about this in the plan so they know what to expect. To do this, describe to investors what the options are, and be ready to talk about it with them if a serious prospect comes up.
Contact Professionals
A successful business won’t grow on its own. That’s why it’s best to contact professionals who will be able to help. Everyone from coaches to financial professionals, planners, and more will be equipped to help you succeed.
This is especially important when formulating a business plan as it can help you get clarity on how you will succeed. For example, a financial professional will be able to analyze your accounts in order to see if your goals are realistic. If not, they might suggest a longer timeline or look into alternative ways of making money or saving it that you hadn’t already thought of.
Otherwise, failing to get the help of professionals could mean your projections are wrong. After all, enlisting the help of an expert means you’ll have a trusted partner. Someone like us at AP Accounting and Tax Services can objectively look at your finances and determine the most successful business plan for you.
So, if you’d be interested in learning more about creating a business plan, give us a call at 407-328-5001.
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