Have a business plan assignment? It's no easy task. A compelling business plan that can get the stamp of approval from your reviewer needs to be as close to airtight as possible. Whether it's a banker, a venture capital firm, or a board you need to present to, be prepared for tough questions about your history, collateral, experience, business model, projections, and competitors in the market. Your plan will be interrogated for its industry figures, the way break-even is figured, and the management team gaps you disclose. To have the best shot, ensure that you've adequately covered each of the following major points, which can help differentiate your plan from the pack:
• Is your executive summary a concise yet thorough recap of the entire plan?
• Have you sourced as many figures as possible from comparable models, industry data, etc.?
• Who are your primary competitors and how well do they perform?
• What strengths and weaknesses does your business have?
• Who will run your company and when do you need to bring on support staff?
The business plan will require an integrated financial model that shows key figures pertaining to an investment in (or loan in support of) the venture. These must include a revenue forecast, break-even analysis, profit and loss statement, cash flow projection, balance sheet for all years, and an appendix with a monthly look at the first year of business after the funding is received. The plan should also have a table of ratios for investors to review and a sensitivity analysis showing the impact of sales variances, if required. Need more information on how to build a great plan, or want to entrust the task to someone who is trained to do exactly that? Call MasterPlans today at 877-453-2011.
