Business planning is a necessary step in setting up a successful company. Like any of your cabinetry projects, the outcome and success of the project depends on laying careful plans and ensuring you have all tools and materials available before you start. You may be writing a business plan for a bank or investor, who will expect to see certain standard components in the plan, or you may do so in order to have a road map for where your business is going.
Instructions
1. Outline your business plan. While there are many templates available online, it is far more informative to go through the process logically and specifically for your business. Banks and investors will want to know two things first: Why are you an expert in this business, and how much money will you make? Design your plan to answer these questions first. Your outline should cover the following sections: Executive Summary, Owner/Team, Opportunity, Business Environment, Marketing Strategy, and Financials.
2. Write the Business Environment section. This will be your longest section, by far. Include the subheadings: Suppliers, Competitors, and Regulations. In the Suppliers section you should specify from whom you'll be getting all raw materials and any contracts or special negotiations you have made. For instance, if you are able to get free lumber from your uncle's mill, you should highlight this in your business plan. Under Competitors, list all businesses who will be competing for the same customers you are targeting. If you specialize in bathroom remodeling, you do not need to list custom cabinetry businesses that specialize only in office kitchens, but you do need to list DIY stores that sell ready-made bathroom cabinetry. Regulations impact your ability to do work whenever you must comply with zoning laws or apply for permits. List all relevant laws and their impacts on your costs.
3. Write the Owner/Team section. This is your resume, as well as the relevant information about your business such as its retail or headquarters location, shop size, and size of current staff, if any. Investors generally think of themselves as investing in an entrepreneur rather than just in a business. In this section, you must sell your expertise and your passion to potential banks and investors.
4. Write the Opportunity section. Here you will specify what the market is for your services. List how many customers you believe are available to you in the marketplace and what percentage of those customers you believe will actually purchase your services. In this section you will sell investors on why your business is unique, exciting and profitable.
5. Write the Marketing Strategy section. This includes not simply your strategy for advertising but also the message you intend to be conveying to your customers. Your slogan and logos should go here. Also specify in what channels you will spend the majority of your advertising budget.
6. Calculate and write your Financials. These pages should take the form of graphs. Include pro forma financial statements for the next five years, a break-even analysis, and any prior years' financial statements. It may be helpful to break down the costs and profits associated with a single sample job.
7. Write your Executive Summary. This is not a summary of your business plan -- it is a summary of your investment pitch. A bank or investor may never even read past the executive summary, so this is your first and perhaps only opportunity to sell them on your business. Tell them who you are, why they should be excited about you, and how much money they're going to make.
Tags: your business, section This, your business plan, bank investor, Business Environment
