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A business plan is not just for large corporate organsiations. It's essential whatever your business size or stage of growth. Whether you're starting out, with just the seed of an idea, or have been in business a number of years, a well-crafted plan will capture your vision and purpose, products and services, revenue targets, support required and actions to make it a reality.

HotelAs Mark Spillman, of cosmetics company Bare Escentuals says...

'We've experienced significant growth over the last 4 years. From a small company we've now become a leading company in the UK premium cosmetics industry. This growth has, of course, been achieved with great people and great products but essentially it's been achieved with well-crafted co-ordinated business plans that include all aspects of our business, from operations through to customer service."

It really is a blue print for success and like a vision board you can bring it to life with pictures, quotes and inspiring goals... so that it becomes your own personal and practical guide to making your dreams a reality.

Here are just 4 big advantages to having a written business vision and plan...

Benefit # 1. It provides you with a bigger WHY. It's easy to become exhausted with the day to day busy work of running a business and there probably will be times when you wonder 'is it worth it?' By having your purpose, vision and plan to hand you can reconnect with the real reason why you are in business.

kolkata-hotel-business-class-suiteBenefit # 2. A business plan maps out a clear route for where you're heading which you can refer to, review and adjust as you progress. Think of it as an important destination that you're setting out on. Like most holidays or trips, for example, you would work out in advance where you are going, how long it will take to get there and how much it would cost. Having this information will get you to where you want to get to faster than trying to figure it out along the way. Then once you set out you can make changes and course corrections when circumstances change or obstacles appear.

Benefit # 3. It acts as a benchmark against which you can assess what's working and not working in your business before you run into problems. If you're not meeting your revenue targets, or a particular product or service has not taken off, by referring back to your plan you can review your pricing, marketing and product mix to work out the changes you can make to get you back on track financially.

Benefit # 4. Your plan provides the template for you to work out different strategiesto adopt to move your business forward. One strategy may be to grow your client database or list, so that you can raise your profile and visibility, or you may want to focus on retaining existing clients by introducing new products or services and increasing the level and quality of service provided. Concentrating your efforts in this way will speed up your results.

Much has been written about the law of attraction and the power of positive thinking to manifest your dreams but your visioning needs to be backed up with planning and action to make it actually happen.

By investing a small amount of time upfront in preparing your Business Plan you'll be amazed, like Mark Spillman, at how quickly your business can take off!

RM_snip_hotel_business_man_roomHow ever you count them up, the basic parts of a business plan are pretty similar from plan to plan. Here they are.

1. COVER

Is the cover of the business plan really part of it?  Good grief, guys.

Yes, it is.  Just as the cover of any magazine is part of it.  Or the cover of any annual report.  It is absolutely true that the same chocolate eclair can be inside a plain box, but I will pick the box that says "Scrumptious, made just for you, utterly delicious French chocolate eclair."

2. EXECUTIVE SUMMARY

This is the one page masterpiece that tugs at the reader's interest.  Include important contact information, as well as the nature of the loan/investment.

3. TABLE OF CONTENTS

Most people would not consider this a real part of a business plan, but it is. Without it, the plan looks very amateurish.

4. INFORMATION ON THE COMPANY ITSELF

There is a bunch of factual information that needs to be included, such as

  • When was it formed?
  • What kind of company is it?
  • If it is a corporation, how many shares are issued?  To whom?
  • If it is a partnership, who is involved?
  • Who formed the company?
  • If you are not the founder, how did it come to be yours?
  • Who is presently involved?  What is the nature of their involvement?

There is also a good dollop of information that is not really "factual", but it does need to be included. That is The Story of the Company. Why was it founded? What are the dreams of the owners for this company? Why do the owners want to devote their lives to this business rather than to any other business in the world?

titanic-business-hotel-lobby-24699dfIt is The Story that will grab the lender. Lenders see facts and figures all day long. Rarely do they hear a compelling story. Make yours good. Make it real.

5. INFORMATION ON THE INDUSTRY

Here is where a good statistical source is worth its weight in gold.

  • Show how the industry is growing.
  • Show how your company fits into the industry.
  • Include charts to visually show strength of industry.
  • Include demographic information.

Bankers and lenders like figures and statistics.  It is easy for them to compare and analyze.  It is a whole lot harder to analyze your character.

So give them solid figures.  They will see these stats whether you include them or not. They have got their own sources.  So include them.  And show them off in a manner that benefits you.

6. BIOGRAPHICAL INFORMATION ON PRINCIPALS

While venture capital companies consider the strength of the management team the most important component of the business, this section by itself is not necessarily the most important.  They will see the strength of the team in the Industry Information, the Marketing Plan and the Financial Summaries.  This section is to give them a notion of who they are talking with.

Most business plan writers tell you to write a paragraph on each officer.  I do not.  I tell you to write a page on each principal.  That page is not a bio.  It is a summary of accomplishments.  If you have not got a page of accomplishments, maybe you have got the wrong management team.

7. MARKETING PLAN

So what makes you think you can promote this idea or product or service?  How will you go about it?  What will it cost?  What are other doing, and how can you compete with them?

If you have a history of successes, this is the place to shout about them.

8. FINANCIAL DOCUMENTS

For existing companies, the rule of thumb is that you summarize by year the past 5 - 10 years, depending on your industry.  Then project as for new companies. For new companies, project quarterly for the first year or two, then annually until the loan is comfortably paid back, or the investment has made a profit.

The more you can put into charts for easy reference, the better.