Financial Resource

Look at any successful entrepreneur and you will find they all started with a great business plan. There is good reason for this; in order for a new business to grow, prosper and get the start up funds it needs, you must show potential investors that you have done your homework and know what direction to take your business.

There are eight key components to writing a business plan. You can be sure investors will look very carefully to make sure your plan is detailed and contains realistic data. Think of your plan as a sort of sales pitch – you want it to jump out at them and make them want to partner with you.

Take your time and do your research. Writing your thoughts on a napkin does not count and will not get you the financial backing you require. What are the benefits and features of your business? Who will your customers be? Are you going to be a brick and mortar or strictly online presence?

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Your Mission Statement. What is your company’s purpose? What do you want it to do for people? What are your objectives and principles?

Market Share. Describe current market conditions and where you see your business fitting in. How much of the market share do you want? How much does your competition have? Are there opportunities for growth?

Information about you and your skills. Investors will want to know what business experience you possess and any special talents or skills you have. Don’t be shy; outline all of your unique skills, awards, honor degrees, etc. The more the better.

Financial data. You must include projections for all financial aspects of your business. Income, expenses, marketing, fixed costs, etc. There are no categories for ‘miscellaneous’ here; you must fully outline each piece of financial data. It’s a good idea to include charts and graphs as well.

Organization chart. Outline the various job positions. How many people do you need to hire and what do you need to pay them?

Do you have a Plan B? What will you do if unforeseen circumstances force you to abandon Plan A? This shows flexibility in your business.

Exit Strategy: Are you willing to give your investors a fair exit strategy? Once an investor has made a return on their profit, most will want to turn your business completely over to you.

If you include these 8 components while compiling your business plan, your chances are much greater of attracting a business partner and getting the financial start up funds you need.

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