A business plan should reflect your plan for the next year, the year after that and all the way through the next 5 years. Business plans are a critical part of your business and are required in some federal government programs.
Things change during the progress of a business. Business plans should be adjusted to reflect those changes on a regular basis. New goals should be set, new marketing plans and your financial data and projections must be included as well.
Items that are usually included in your business plan are:
- Introduction to the company (an overview),
- Company description,
- Personal financial statements for all owners or shareholders,
- Company financial statements,
- Cash flow projections for the next two years,
- Profit and loss projections for the next two years,
- Break-even projects,
- Sales projections and revenue forecasts,
- Marketing plan for the next 2 years including advertising plan,
- Fixed costs forecasts,
- Loans and repayment plans,
- Projections of product developments, wholesale sales, manufacturing projections or project development projections, depending on your business type,
- Facilities that you are working in -- description and status (rental or owned, outstanding loans on property, etc.)
- Market research into development or projects,
- Description of services or products,
- Management bios and position held in the company,
- Patents, copyrights or other ownership rights,
- Capital spending plan,
- Business Accomplishments,
- Competition in your market and market growth projections,
- Owner's ability, experience, education, and background,
- Business Risk Analysis or a Major risks you face in your business and a plan to deal with these risks should they arrive,
- How and where you will find qualified employees for your business,
- Resumes of key personnel and owners.
If you are looking for funding, you would want to include this request in the business plan as well. You will need to explain how much you are requesting, how it will be utilized and a re-payment plan.
Your business plan should be tailored to fit the reason you are preparing the plan. If you are preparing the plan for yourself, you will include details that you would probably not want released to the general public.
If you are preparing the plan as part of a federal government program such as the 8(a). Economically Disadvantaged, women owned, service disabled, veteran owned, small business or other programs, you will want to make sure it fits their requirements.
Whatever your reason for preparing your business plan, make sure you know what is required to be included. If you don't know or don't have someone who knows how to prepare one, get in touch with someone who can help you get your business plan completed and who understands what is required in the different situations.
Whatever you are doing in business, get a written business plan in place today.
Charlene S. Reed, Owner/Author
www.MyConstructionOffice.com
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