Why do I need a business plan?
A business plan is the blue print for your business. It tells others the projected course of action for your business over a period of time. If you are in need of OPM (Other People’s Money) for your business, a business plan is critical.
Who needs to see my business plan?
Banks, lenders, and investors will thoroughly examine your plan in order to decide whether or not to finance your business venture.
What needs to be included in a business plan?
A well-executed plan will describe your business including: the market conditions, the industry, your competition, plan of operations, marketing strategies, problem-solving strategies, and management policies.
What about Financial Projections?
The financial projections may be the most important component of the plan. Institutional lenders and sophisticated investors will expect to see the following in your plan:
• an Income Statement,
• a Balance Sheet
• a Statement of Cash Flows
You will also need to include a Use of Proceeds schedule.
When is my business plan finished?
Keep in mind that your business plan is a “living” document. It is not meant to sit on a shelf in your office. As you make changes and adjustments in your business, you should reflect those changes in your plan.