Business plans are a necessity for all aspiring business owners, with an excellent corporate idea. Below we have listed why they are required to make your new business venture a success.
What is it
Definition: A business plan is a written document that describes in detail how a business, a new one or an existing one, is going to achieve its goals. A business plan lays out a written proposal from a marketing, financial and operational viewpoint. It shows the impact the new investment will make on this business.
It is the blueprint of the company; the document states what, how, when, with who and where your business operates.
How it helps
A complete, thoughtful business plan is one of the most valuable tools in helping you reach your long-term goals. It gives your business direction, defines your objectives, maps out strategies to achieve your goals and helps you to manage possible bumps in the road.
Here at Funding Connection, we will draw up the business plan that will help you work out the goals you want to achieve, and the strategies to achieve them. This means you can focus your resources and energy on what you need to do, rather than spreading yourself too thin.
The document fine tunes your business idea and serves as a guide to management by highlighting the goals against which future performance can be measured, as well as test the feasibility of your business idea.
Why financiers need it
If you’re seeking finance for your business, you’ll need to show banks and investors why they should invest in your business.
Lenders and investors will only risk their time and money if they’re confident that your business will be successful and profitable.
The document provides the financier with the necessary information for evaluating the startup of your company. They get a detailed insight into your idea, and how it will work and if it will be profitable, it is an essential document that is needed for your company to apply for a loan.
What is included in a business plan
· Business overview
· Marketing and Sales strategies
· Pricing strategies
· Competitors analysis
· Defined target markets
· Description of the idea/product/service
· Operation / production process
· Information about the company’s industry in South Africa
· Highlight the company’s goals
· Key financial objectives
· Management and employee’s summary
· SWOT analysis
Not only do you need a business plan, but also a financial forecast must be included in it that show’s your company’s projected cash flow, profit and loss, break-even analysis, sales projections and balance sheet.
If you require a business plan please contact us.
Sign up today and be the first to get notified on news about Funding.