Wondering what real life business plans look like? Feeling like the samples you've seen in books and bank offices look a little too polished and intimidating? We know how you feel. But the reality is, all good business plans are about the same. At least, they all do a good job covering the basics that a potential lender or investor will require. These “vital basics†for a business plan include an assumptions-driven financial model, a compelling market analysis, and a clear implementation and marketing strategy. But you can't create these things until you know for sure what you offer to the market, how you intend to deliver it, and what threats you're up against. So answer these questions:
• Who are your primary competitors and what other risks do you face?
• How saturated is the market now?
• What are the projections for your industry over the next few years?
• What unique selling proposition or strength will allow you to fulfill the market need you see?
• How much capital do you need to execute your vision?
• When can the business operate profitably?
You'll also want to let a prospective investment partner (angel or VC) know what their likely share of the business is so that they can calculate ROI. An exit strategy is also helpful for this audience, especially if you have a clear exit opportunity. For lending plans, a three-year model that shows you can easily repay the initial loan should be sufficient, but make sure that your model is supported by solid research and, wherever possible, industry averages or past performance figures. Need help making a “real life business plan†for your company? MasterPlans is here for you. Our in-house group of expert consultants has been working on business plans since the company was founded in 2002. Call toll-free to learn more about how we can help. (877) 453-2011
