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How to Write a Business Plan

How to write a business plan

It is important that you learn how to write a business plan and what to include in it. The plan needs to be clear, concise and easy to read. Do not include any technical jargon. If possible get someone non technical to read through it before you give it to the relevant investors.

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This is what you need to include in your plan:

An executive summary

An executive summary needs to explain the key points to your business. It is a summary to your business, it is therefore best to write it last, when all the other sections are complete.

You will need to include the main points from each section. After reading the executive summary the reader should know what your business is about and want to know more.

The business

Information about when the business started or when you plan to start. Any history for the company and it's legal structure. Information about management of the company and skills that are available. Describe what you have achieved both for this business and previously.

Products or Service

Include a brief description of what your product or service is and why it is unique. If there as any competition for your product or service give as much detail as possible. Describe how you are planning to develop your product or service. Are there any patents that you either have or applied for.

Marketing

Include as much detail as possible about the market size, who you are planning to target and how you plan to target them. Include how you are going to sell whether it is by adverts, internet, word of mouth or direct sales. Who will make the sales.

Operational Details

Details about where your business will be based and whether you own or rent the premises. Include any equipment that is needed. Explain that if your business expands how you plan to deal with the expansion. Do you have all the suppliers you need and are they capable of meeting your needs?

Financial Forecasts

Include a summary of your financial forecasts. You will need to produce forecasts over at least a three year period, detail any assumptions that you have made and include as much details as possible.

You should include the following forecasts:

  • Sales Forecast
  • Cashflow statement
  • Profit and Loss forecast
  • Balance sheet forecast
  • Risk analysis

If you are having problems with your financial forecasts it is worth contacting an accountant.

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