Guest Post by: Brad Lauritzen
Brad is a successful author, speaker, and entrepreneur. He has created three profitable and growing businesses. He now teaches his students the process to start their own profitable business through the BEAR Formula.
In this article I will discuss 9 essential parts of a company's business plan. Understanding and implementing each of these points and how they affect the business plan will be crucial to the success of the business. They are listed in a possible order they might appear in a strong business plan. Following the outline below will allow for a strong business plan that will ensure the company has a greater chance of success and this preparation will have a business plan ready to present to investors.
1) Company values and mission statement - This will clarify why you are going into business and what you hope to accomplish. This can be looked at as the foundation of the business.
2) Research for the business - Identifying your target market as well as your competition is one of the most important factors as to whether your business plan will be effective. The more clearly you can define these items, the more successful your business will be.
3) Financial Plan - What upfront costs will be involved with starting the business? What ongoing costs will there be? How will the business be funded?
4) Marketing Plan - Using the research from number two, it should be defined how the target market will be best reached. A marketing budget should be discussed as well as the plan for online advertising, offline advertising, and image advertising. Define the company's brand here.
5) Revenue and Profitability Targets - This is the most important section for investors. You must have a logical conclusion as to why you arrived at the numbers you propose. Be optimistic in your outlook, yet be realistic in the potential of your business.
6) SWOT Analysis - This acronym stands for Strengths - Weaknesses - Opportunities - Threats. By reviewing this you can emphasize where your business may excel, where help may be needed, what opportunities for entry or growth exist in the marketplace, and what could potential be an obstacle for your business.
7) Staffing/Outsourcing - Explain what hiring will need to be done to meet the company's needs, where your core competencies lack to define what you will outsource, and what potential growth in staffing will be needed over time.
8 ) Plan for Growth - How will the company handle the growth as business begins to increase?
9) Plan for Uncertainty - What will happen if things go wrong in the business? Is there an exit strategy? How will you prevent investors from losing their money?
The more you clearly define when starting your business, the more likely you will be to achieve your goals faster and with fewer losses and mistakes along the way.
Are you interested in getting more information about starting your business? Check out Brad Lauritzen's free report "7 Steps to Creating Your Own Profitable Business" - http://thebearformula.com/take-action-now.html
