Columbus Indian Community - ColumbusIndian.net
| | |
 


 

Preparing an Effective Business Plan - Jun 2020

Money
Contributed by : Mukesh Makker
Add To My Favorite
Share With Your Friends



A business plan is a valuable tool whether you're seeking additional financing for an existing business, starting a new company, or analyzing a new market. Think of it as your blueprint for success. Not only will it clarify your business vision and goals, but it will also force you to gain a thorough understanding of how resources (financial and human) will be used to carry out that vision and goals.

Before you begin preparing your business plan, take the time to carefully evaluate your business and personal goals as this may give you valuable insight into your specific goals and what you want to accomplish. Think about the reasons why you need additional financing or want to start a new business. Whatever the reason it is important to determine the "why."

Next, you need to figure out what type of business or new business direction you are interested in pursuing. Chances are you already have a specific business in mind but if not you might want to think about your business in terms of what technical skills and experience you have, whether you have any marketable hobbies or interests, what competition you might have, how you might market your products or services, and how much time you have to run a successful business (it may take more time than you think).

Finally, if you are starting new business, you'll need to figure out how you want to get started. Most people choose one of three options: starting a business from scratch, purchasing an existing business, or operating a franchise. Each has pros and cons, and only you can decide which business fits.

PRE-BUSINESS CHECKLIST

The final step before developing your plan is developing a pre-business checklist which might include:

Business legal structure
Accounting or bookkeeping system
Insurance coverage
Equipment or supplies
Compensation
Financing (if any)
Business location
Business name

Based on your initial answers to the items listed above, your next step is to formulate a focused, well-researched business plan that outlines your business mission and goals, how you intend to achieve your mission and goals, products or services to be provided, and a detailed analysis of your market. Last, but not least, it should include a formal financial plan.

PREPARING AN EFFECTIVE BUSINESS PLAN

Now, let's take a look at the components of an effective business plan. Keep in mind that this is a general guideline, and any plan you prepare should be adapted to your specific business with the help of a financial professional.

INTRODUCTION AND MISSION STATEMENT

In the introductory section of your business plan, you should make sure you write a detailed description of your business and its goals, as well as ownership. You can also list skills and experience that you or your business partners bring to the business. And finally, include a discussion of what advantages you and your business have over your competition.

PRODUCTS, SERVICES, AND MARKETS

In this section, you will need to describe the location and size of your business, as well as your products and/or services. You should identify your target market and customer demand for your product or service and develop a marketing plan is. You should also discuss why your product or service is unique and what type of pricing strategy you will be using.

FINANCIAL MANAGEMENT

This section is where you should discuss the financial aspects of your business--and where the advice of a financial professional is vital. The following financial aspects of your business should be discussed in detail:

Source and amount of initial equity capital.
Monthly operating budget for the first year.
Expected return on investment (ROI) and a monthly cash flow for the first year.
Projected income statements and balance sheets for a two-year period.
A discussion of your break-even point.
Explanation of your personal balance sheet and method of compensation.
Who will maintain your accounting records and how they will be kept.
Provide "what if" statements that address alternative approaches to any problem that may develop.

BUSINESS OPERATIONS

The Business Operations section generally includes an explanation of how the business will be managed on a day-to-day basis and discusses hiring and personnel procedures (HR), insurance and lease or rent agreements, and any other pertinent issues that could affect your business operations. In this section, you should also specify any equipment necessary to produce your product or services as well as how the product or service will be produced and delivered.

CONCLUDING STATEMENT

The concluding statement should summarize your business goals and objectives and express your commitment to the success of your business.

HELP IS JUST A PHONE CALL AWAY

Please contact the office if you have any questions about business plans or need assistance creating one.


About Author
Mr. Maker is a certified Public Accountant and serving the South Asian community since 1993.

Website: https://www.taxmaker.com/newsletter.php#3

 

Disclaimer: Please use this channel at your own discretion. These articles are contributed by our users. We are not responsible or liable for any problems related to the utilization of information of these articles.

 

View All Contributions

Post an Article
Notify Me of New Articles

Become A Featured Contributor
Add Your Blog | Add Recipe | Add Article

More Article by Mukesh Makker

Nikita Rawal gets a birthday surprise by her fans; watch her reaction
International Cricketing Legends to play for Friendship Cup UAE in Sharjah
IMPORTANT TAX CHANGES FOR INDIVIDUALS AND BUSINESSES - Jan 2020
View All Articles

Featured Contributors


Christine Dunbar

Vasudha Sharma

Darshan Goswami
Darshan Goswami

Dilip Saraf

Vivek Wadhwa

Shruti Sadolkar
Shruti Sadolkar

Aayushi Manish

Tahmina Watson

Ananya Kiran
Ananya Kiran

Latest Articles

San Jose Resident Travels to D.C. to Urge Congress to Ensure Childhood Cancer Research Remains a National Priority by Priscilla Cabral
Discover Proven Strategies for Healthy Living Today by Anya Willis
4 Healthy Ways to Help You Maintain Your Sobriety by Anya Willis
Akshay Kumar unveils New BTS Video for "Bade Miyan Chote Miyan by Staff
Akshay Kumar Unveils Soul-Stirring Music Video "Shambhu" Dedicated to Lord Shiva by Staff
View All Articles