There are investment plans, franchise plans, strategic plans, operational plans, feasibility plans and business plans for startups seeking money. There are even plans named annual plans, growth plans and banker’s plans. No wonder it’s confusing! Here are a few tips to help you sort it all out.
First and foremost, you have to know what you want from your business plan. When you’re presenting a business plan to a bank, angels, or other investors, your plan should include any and all content that investors will want and need. It is important to make sure your executive summary is strong. A professional business plan writer will know to keep it short and concise and make sure it fits your needs. If you’re trying to sell a concept or idea in the written plan, your summary should include key highlights that will pique the readers’ interest. Your plan also should include detailed explanations of your strategy, your company, your market, and your product. Your researcher/writer will include tactics for a marketing plan, product plan, financial plan, and management plan. Think of your potential investors as outsiders looking in and help them understand the business.
While a non-professionally written business plan may include a sales forecast, an expense budget, and information on cash management, a professionally written, traditional business plan will include formal financial projections that respect finance and accounting standards. Banks will want to see projections of key ratios as well, and investors may even want an analysis on when your company should reach the “break- even” point.
Startup business plans should contain the addition of estimated startup costs and financing tactics. They become plans for investors or banks when you’re looking for financing. With all the different meanings of “business plan,” make sure you review it regularly and keep it current. Use it to get what you want from your business.