Companies come to us for a variety of reasons needing to address this issue. Some companies are looking to change direction and are looking for a third party to help capture this new direction in a plan. Sometimes companies had never seen the need for this type of plan and now need the structure and direction a Strategic Business Plan can provide. Whatever your needs, let Applied Business Consulting help you build the right plan for your company.

Business Plan Basic Ingredients

Writing a Business Plan is a vital step in starting or operating a business. A Business Plan provides a detailed description of your goals and how you will achieve them. A good plan provides the business owner with a map to follow: defining where the business is, where it wants to be and how it will get there. It also provides potential investors or creditors with the information necessary for reaching a decision on whether to support your business. Complete reliable information in a written, well organized form is essential.

The Business Plan is an operating tool which will help manage the business. Financial projections provide a sales forecast and a budget for the enterprise. Effective management requires that the books be closed on a periodic basis, usually monthly, with results compared to the budget and corrective action taken as needed.

There is no one correct format for a Business Plan. However, every good Plan contains certain basic information. These elements are:

Executive Summary briefly summarizes other sections of the written Plan in one page or less. A Plan less than seven pages in length, excluding Financials and the Appendix, does not require an Executive Summary.

Description Of The Business presents general information on the enterprise. Including: Whether this is a startup, expansion or acquisition; Legal form of organization: proprietorship, partnership, corporation, LLC; the type of business or service and the specific product or service to be provided; a description of the current operations and, if appropriate, discuss future plans.

Marketing Plan defines how expected sales will be achieved. What your marketing strategy is and why. Define the market for your product or service. Describe your customers, age, sex, profession and income. Kamagra Soft Discuss special market characteristics: seasonable, cyclical, geographic and demographic considerations. Define how will you meet market needs? How will you attract and hold customers? How will you price your product or service? Identify your competition. How are they doing? How will your operation be better than theirs?

Operation Plan defines how the product or service will be produced or procured, inventoried and delivered to customers. Also define the location and type of facility you have selected. Discuss demographic and other factors that lead to the selection.
Management Plan defines the management team. What is their experience? How does their background meet needs of the business? How will the organization be structured? What additional resources will be utilized in managing the business?

Personnel Plan defines initial staffing including skills needed. How will employees be hired and trained?
Explain additional needs during the period covered by the Plan

Application and effect of investment or loan – Define how much funding is required? What is the expected source of funds (owner investment, loan, stock sale)? Explain how the money will be used. If leases or lease purchase agreements are being used for for facilities or equipment, define the total commitment and explain the analysis to support your decision. Define how Levitra lenders and the investors will be repaid.

Financial Projections are normally provided by month for the first year with a year-end total. Most lenders require year end numbers for the second and third year.

Be certain you understand which type of accounting is applicable to your business. Cash accounting is simpler for a small business, but accrual accounting may be more accurate and is required by the IRS, if you carry a large inventory or are incorporated. Do not hesitate to seek advice from an accountant.
A business operating on Cash Accounting requires only the Cash Flow Statement as a financial projection.

A business using Accrual Accounting will present a Cash Flow Projection, Income Statement and Balance Sheet.

Author Bio: Tom Mann

Business Operations Director who creates incredible overhead savings in: property leasing, employee benefits expense, equipment, office supplies, vendor contracts, phone systems/cell phones, general utilities, fixtures, facilities, fleet vehicle expenses, insurance policies, site cleaning – EVS cost, parking, landscaping/grounds.