How to build a successful business plan by geoffrey byruch

HOW TO BUILD A SUCCESSFUL BUSINESS PLAN BY GEOFFREY BYRUCH BUILDING A BUSINESS AND BECOMING AN ENTREPRENEUR FORCES YOU TO INTERNALIZE A N D S E L F R E F L E C T O N VA R I O U S H A R D - H I T T I N G Q U E S T I O N S T H AT E N C O M PA S S E S W H AT Y O U ARE TRYING TO ACCOMPLISH AND THE VA R I O U S S T E P S T O G E T T O Y O U R E N D G O A L W H AT I S A BUSINESS PLAN? A BUSINESS PLAN IS A COMPREHENSIVE REPORT T H AT D I S C U S S E S T H E C O M PA N Y ’ S V I S I O N , GOALS, TEAM MEMBERS, FINANCES, PROJECTED FINANCES, MARKETING PLANS, EXPENSES, AND O T H E R VA R I O U S FA C T O R S T H AT W I L L I M PA C T T H E BUSINESS FROM ITS P R E S E N T- D AY S TAT U S T O I T S F U T U R E - D AY P O S I T I O N H AV I N G A H O L I S T I C V I E W, E S P E C I A L LY O N E T H AT B R E A K S D O W N T H E A P P R O P R I AT E S T E P S I N A S P E C I F I C T I M E F R A M E , A L L O W S Y O U T O TA C T I C A L LY P L A N F O R W H AT T H E N E X T F E W W E E K S , M O N T H S , O R Y E A R S H O U L D L O O K L I K E F R O M T O D AY POSITIVES FOR A BUSINESS PLAN • A B L E T O S T R AT E G I C A L LY • • • • • P L A N F I N A N C I A L LY A N D E F F E C T I V E LY PLAN FOR FUTURE INVESTMENT HOLISTIC VIEW ON FINANCES B E T T E R U N D E R S TA N D I N G FOR MANAGEMENT AND EXPENSES FUTURE REVENUE S T R AT E G Y P L A N N I N G S O H O W D O Y O U M A K E A C O M P R E H E N S I V E LY S O U N D B U S I N E S S P L A N ? B E L O W I H AV E O U T L I N E D T H E F I V E M A I N C AT E G O R I E S Y O U NEED TO INCLUDE IN YOUR BUSINESS PLAN: Executive / Business Description • For this section, it is best that you provide an overall summary of your business Provide a short description of the company, the company’s history, and the industry you are looking to jump into • When describing the industry, discuss the present outlook as well as future possibilities that you see your company can assist to • Make sure you provide information of the various markets and competitors in the field • Having this idea mentioned can provide you and your investors with the future affects or strategies you need to make to compete in such a field • Lastly, make sure you introduce yourself Provide a short description of who you are, your academic and professional background, and what brought you into the field 2 VISION & GOALS • YOU WANT TO OUTLINE YOUR OVERALL VISION AND GOALS FOR Y O U R C O M PA N Y T H E B E S T W AY T O DO THIS IS BY BREAKING THIS DOWN IN THREE W AY S : • VISION S TAT E M E N T • SHORT TERM GOALS • LONG TERM GOALS • Vision Statements: This is the mental picture of what an organization wants to achieve over time Try thinking of this as your overarching goal of where you want your company to be 5, 20 years from now Short-Term Goals • Short-Term goals: Goals that you set for your company and yourself Think of these goals as weekly or monthly goals; goals that can be accomplished in a timely fashion • Long-Term Goals: Very similar to the vision Long-term goals are vital for a successful business These are goals you are looking to accomplish in the future, preferably within a year time Begin thinking 12 months for this concept OUTLINE YOUR FINANCES IN ORDER FOR YOU TO SUCCEED, YOU NEED TO ASK YOURSELF S O M E H A R D H I T T I N G Q U E S T I O N S T H AT W I L L O U T L I N E Y O U R F I N A N C E S I N A H O L I S T I C V I E W THESE QUESTIONS NEED TO REPRESENT FUTURE PROJECTIONS, EXPENSES, AND P R O F I T • HOW MUCH MONEY DO YOU CONTROL? • HOW MUCH MONEY WAS INVESTED I N Y O U R C O M PA N Y ? • W H AT A R E Y O U R E X P E N S E S O N A D A I LY, W E E K LY, M O N T H LY, Y E A R LY BASIS? • W H AT A R E Y O U R S A L E S ? H O W M A N Y C U S T O M E R S D O Y O U TA K E I N O N A D A I LY, W E E K LY, M O N T H LY, Y E A R LY B A S I S ? • W H AT I S Y O U R N E T P R O F I T ? H A V E Y O U R E A C H E D Y O U R G O A L ? I F N O T, W H AT C A N Y O U D O T O C U T C O S T / INCREASE REVENUE? 4.MARKETING • For a new business, you want to outline various marketing and branding strategies you will implement so that you can attain more customers • The stronger your marketing is, the stronger your business will be • Think about the stages of your overall brand whether or not the audience will welcome it • Additionally, begin planning online tactics This is something that can be done at a fair price to get the word out for your business 5 FUTURE STEPS For the benefit of your company and your investors, you want to create financial and lifestyle decisions that can reason how you will succeed at your short-term and longterm goals There is really not wrong answer to these questions Make sure you are thinking step-by-step of how effectively and efficiently your company should move when using funding or producing / advertising its products Ask yourself the following questions: • What will you use for the X amount of investment? • When will business turn into a profit? • When will investors begin to see a return in their money? • What are the projected times you will see an increase in revenue? • What are the chances the business will fail? What will you when this happens? • How many people will you be working with? What will they do? How will this help your business? • Where will you be located? What will the hours look like? [...]... overall brand whether or not the audience will welcome it • Additionally, begin planning online tactics This is something that can be done at a fair price to get the word out for your business 5 FUTURE STEPS For the benefit of your company and your investors, you want to create financial and lifestyle decisions that can reason how you will succeed at your short-term and longterm goals There is really... W H AT I S Y O U R N E T P R O F I T ? H A V E Y O U R E A C H E D Y O U R G O A L ? I F N O T, W H AT C A N Y O U D O T O C U T C O S T / INCREASE REVENUE? 4.MARKETING • For a new business, you want to outline various marketing and branding strategies you will implement so that you can attain more customers • The stronger your marketing is, the stronger your business will be • Think about the stages... NEED TO REPRESENT FUTURE PROJECTIONS, EXPENSES, AND P R O F I T • HOW MUCH MONEY DO YOU CONTROL? • HOW MUCH MONEY WAS INVESTED I N Y O U R C O M PA N Y ? • W H AT A R E Y O U R E X P E N S E S O N A D A I LY, W E E K LY, M O N T H LY, Y E A R LY BASIS? • W H AT A R E Y O U R S A L E S ? H O W M A N Y C U S T O M E R S D O Y O U TA K E I N O N A D A I LY, W E E K LY, M O N T H LY, Y E A R LY B A S I... not wrong answer to these questions Make sure you are thinking step -by- step of how effectively and efficiently your company should move when using funding or producing / advertising its products Ask yourself the following questions: • What will you use for the X amount of investment? • When will business turn into a profit? • When will investors begin to see a return in their money? • What are the projected... investors begin to see a return in their money? • What are the projected times you will see an increase in revenue? • What are the chances the business will fail? What will you do when this happens? • How many people will you be working with? What will they do? How will this help your business? • Where will you be located? What will the hours look like? ... goals; goals that can be accomplished in a timely fashion • Long-Term Goals: Very similar to the vision Long-term goals are vital for a successful business These are goals you are looking to accomplish... E S W H AT Y O U ARE TRYING TO ACCOMPLISH AND THE VA R I O U S S T E P S T O G E T T O Y O U R E N D G O A L W H AT I S A BUSINESS PLAN? A BUSINESS PLAN IS A COMPREHENSIVE REPORT T H AT D I S... investors, you want to create financial and lifestyle decisions that can reason how you will succeed at your short-term and longterm goals There is really not wrong answer to these questions Make