Not Without a Plan (Featured author - Giselle Rivera)

The most important advice a professional business owner can give to an entrepreneur on the verge of creating their own company, is the fact that a business plan is key to survival for a variety of reasons.  Many believe that a business plan is a tool strictly used to find financing for you new venture, but this notion is completely naïve to the entire concept of a business plan. A business plan does allow for you to approach a lender or an investor, but it is also a means of achieving the business goals of the company.  A business plan will help implement the objectives and the target the target market of any company at any given time of the company’s life cycle.  Although it does not ensure success, it does allow business owners to avoid common mistakes and remain focused on their original vision of the company.

To formulate an effective business plan, certain components need to be included.  They are:  (other than the essential Cover page, Table of Contents and title page)

1.Executive Summary
2.Business Description
3. Market Strategies
4.Competitive Analysis
5.Design plan
6.Operation/management plan
7.Financial factors

Executive Summary:  Outline and description of the product/service offered through the company.  This section should be extremely effective and “eye-opening,” as it is the first section seen by readers.

Business Description:  This description will elaborate the briefing explained in the Executive summary.  Example: Industry history, demand of industry, trends (if any), and the amount of opportunity in that industry.

Market Strategies:  Define the market of the company.  Include its size, structure, growth and sales potential.  This section should focus on consumers and competition.  Evaluate the strategies that will allow for assistance with price, distribution and sales.

Competitive Analysis:  Answer: How does this business relate to its competition? Describe advantages, barriers developed to prevent failure because of competition, and show methods of preventing weakness or ways to improve.

Design Plan:  The design plan reveals the product/services development stages and the context of production, including marketing.  Using diagrams are an effective method to demonstrate the ideas of this section.  Create a schedule for the product’s development and timeline.

Operation/Management plan:  Day-to-day operations and management of a company is critical to its overall success.  Describe these daily functions and the qualifications of those in charge.

Financial factors:  This shows how profitable a business can be for short and long term views.  The financial factors should ALWAYS include: A cash flow statement (showing the amount of money flowing in and out of the company) and a balance sheet (showing the company’s strengths financially through assets and equity).  A return on investment, break-even point and return on assets are also great factors of the financial section of a prominent business plan.

Collecting and gathering this information means that there has been an efficient amount of thought placed into the business and its future.  A good business plan will never be placed away and never looked at again, in fact a good business plan, is placed somewhere accessible and is used as a frequent guide to managing the company.  It will always determine which path to choose and what to avoid.  Reviewing and editing a good business plan annually is key.  There should be adjustments made for change of markets or clientele or even, demands.  A good business plan should adapt to new eras and periods of its life cycle.

*Through extensive research for a variety of business plans, for family members, friends and clientele, I have been able to completely grasp the concepts behind the business plan and have offered my writing services to those who need.  Therefore, feel free to contact me in regards to any questions or if you need to have a business plan written efficiently.  Contact me at GiselleR@eliteresumes.org if I can be of any help.*