There are traditional and non-traditional reasons for writing a business plan. Most entrepreneurs are aware that business plans are used as support for bank loans or SBA loan requests, to support a request for funding from private people like angel investors, or to ensure a startup has addressed the elements critical for every business. The business plan is required for E-2 and EB-5 visa applications, and to start an online crowdsourcing campaign on one of the popular websites.
However, there are plenty of less discussed reasons for writing a business plan. They include submitting a grant request, estate planning, to support a business lease request, to sell a business, to value a business for forming a new partnership, to attract new business alliances, and many others.
Though each business plan needs to be customized to meet its specific purpose, there are elements that appear in every document. They address the success factors that form the foundation of a sustainable business.
These factors include:
• Executive Summary – This section is short and to the point, but it tells the reviewer the business purpose and what the entrepreneur wants.
• Company Description – This is the section in which a high-level description of the nature of the business and the critical success elements are described.
• Management Description – Who owns the company? What is the organization’s structure? What are the critical qualifications of the personnel filling key positions? Who will serve on the Board of Directors?
• Marketing Analysis – The marketing analysis offers a review of the data collected and the industry analyzed. It then uses the analysis to build initial marketing and sales strategies based on goals and objectives and market conditions.
• Products and Services Description – This section offers a clear description of what the company is (or will be) selling. It also describes the consumer or business customers’ needs the products or services will satisfy, and the benefits delivered. The entrepreneur needs to explain the selling proposition and how ait fits the business value proposition.
• Financial Section – The financial section is the one section of the business plan that entrepreneurs often find most difficult. The statements reflect the end result of market analysis and selling strategies, and all the other operational factors. The statements cover 3-5 years of projections and include:
o Profit and Loss
o Balance Sheet
o Cash Flow
o Break Even Analysis
o Revenue Forecasts
o Supporting financial statements with detailed breakdowns, when necessary, i.e. staffing expenses by position
o Charts, graphs, and tables
• Funding Statement – State how much capital is required to startup and reach profitability, and how much the entrepreneur needs to raise through investors.
The business plan contains a lot of information that must be presented in a logical and organized manner. OGS Capital has helped thousands of small business startups develop business plans that contain the right success factors. OGS Capital works with SMEs ready to take their businesses to the next level of growth. Complete the appropriate online contact form, and let business professionals share their knowledge and experience to help you build success into the business plan.
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Illustrative business plan samples
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.