A Strong Business Plan Will Help Attract Lenders And Investors

No business can effectively operate nor attract the funds needed to survive prosper and grow without a good business plan. A good plan is a management tool that shows where your business is going, and just how you plan to get there, and is a necessity for attracting lenders, investors, partners and key personnel, plan outlines vary but they all must cover certain key areas, such as: Executive Summary, Business Description, Marketing Plan, Financial Plan, Management Team, and Appendix.

Moreover, there are many kinds of software on the market that can help you write you write a good plan, but you must still input the data needed to write your plan into the software. The output of the software can never be any better than the data you put into it and you must manually put that in yourself. Here are four steps to help you write a strong business plan:

1. Put all of your plan data and information into several good old fashion file folders and label each folder so that you know what is in it. This data and information will include such materials as marketing methods you will use, market research, management team bio’s, financial statements, profit projects and other similar items.

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Top 3 Reasons For Writing Business Plans

Whether you are a start up or established business, and whether you are a non-profit organization, writing a business plan can be one of the most useful things you can do for your business. Obviously there are different types of business plans depending on the nature of your company or organization. It’s not enough that you have a “hunch” your new start up will be a roaring success, or you believe your latest web. 2.0 idea a surefire “ten bagger” success for the lucky venture capitalist. There are people who need to take a close look at your business plan; whether it’s you, internal management or external investors. In this article, we will look at the top three reasons for writing business plans.

First to answer the question: “Is the business feasible?”

Before you actually commit funds, manpower and time on starting a business, it helps to actually have a “dry run” to see if the venture you have in mind has a good chance of success. The business planning process forces you to look at what your competitors are doing and to ask yourself how you can differentiate your product or service. Typically we call this a SWOT analysis – Strengths, Weaknesses, Opportunities and Threats. At the same time you want to identify, as clearly as possible your unique selling proposition. This can be a special feature or something unique about your branding. Just be different and attractive in the eyes of your target market. Going through this process will give you a better idea of you chances for success in the marketplace.

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The Bank Won’t Back Your Business Because You Don’t Have a Business Plan

One of the key things I want to get everyone who reads this article to do is rethink (or think about in the first place) what a good business plan is and what is involved in putting one into writing. The bad news is – it will take time and effort – you’ll have to engage the strategic thinking part of your brain. The good news is – it’s not as hard as you think and there are numerous resources available to you to if you feel as though you’re not up to the task of putting it all together yourself. You never know, you might even find a friendly, helpful business banker that would be willing to point you in the right direction.

Essentially, there are three key elements to a good business plan. Remember, I am speaking from the perspective of the guy that is going to be putting your application together and submitting it to the bank’s credit people. There are literally hundreds of books, articles, websites, blogs, etc. out there that will tell you what “has to be” included in a business plan. At last check, a Google search of the term “business plan” returned about 195 million results. The fact of the matter is, whatever the format, whatever the content, you need to have a business plan – full stop. It can always be updated, amended to suit the audience (banker, investor, customer – whatever) and should be constantly reviewed to make sure it is a document that you can use in the day to day management of your business. That being said, let’s look at the three elements of a good business plan.

A Good Business Plan Has a “School of Thought”

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