The business plan is a written document that is used to attract investors, the establishment of trade relations and to show business idea. It is a document that targets different audiences at different times. I propose you to organize information in different chapters and then prepare specific for each of these opportunities versions.
The Executive Summary
Are you able to tell on a page your business idea? All right. Because that is the space available for a first contact. Go straight to the core business, the opportunity and funding. The rest can be developed in the following pages.
It is to explain why there is a business opportunity, what are the advantages of your product or service against the competition and what target markets can be developed. Focuses well your argument using data that can be checked (market research, surveys, analysis of consumer trends or similar tools).
Marketing Plan, Sales and Commercial Relations
Follow these tips considering that the investor wants to know customer behavior (whether B2B or B2C) market size and possible future developments. It also includes a section on who and how operations develop. Not enough to have a good marketing plan or a good product, but we have to know how to organize the day. Explains how the product is placed at the point of sale (distributors), who is the provider (experience, location), how returns (service or collection) or what equipment needs are required (a warehouse, a vehicle or a computer). Therein lies the heart of the business.
You cannot start a business without equipment. Who are detailed in the proposal, what is your experience, what are going to outsource services (accounting, tax advice or lawyers) and what gives each of the members. The contribution can be either time or money (wages or receive investment of each partner).
The members have to support the ideas that we have presented. Clarifies the sales forecasts, margins, profits and losses and, above all, the cash flow (Cash is king!). Your proposal should explain the short-term (at what point are we?) And expectations three years (where we want to go?). An investor has to see when the break-even is reached and how much capital is required so far. Do not tell beautiful stories about instant success, but also prevents expressions like “worst scenario”. Probably, that’s the scenario.
When the meeting is over, what are the next steps for the next six months? Identifies concrete and measurable steps. Explains how and why we must follow a certain route sheet detailing. It is a way to check what the most important aspects of the business are.