With great timing, solid business skills, entrepreneurial drive, and a little luck, some founders build thriving businesses without creating even an informal business plan.Does a business plan make startup success inevitable? But great planning often means the difference between success and failure.
Determining if an idea fails on paper can help a prospective founder avoid wasting time and money on a business with no realistic hope of success.
that your idea for a business is not just a dream but can be a viable reality.
Describe the owners and management of the business, along with the expected number and types of employees who will be working in the business.
This will be a very brief description; you'll be doing a more detailed management plan in a later section.
If you need seed money from a bank or friends and relatives, your business plan can help you make a great case. Financial projections describe where you plan to go.
to show prospective employees since you're still in the startup phase.Many lenders request that you include this statement, itemizing all of your financial needs for the business, along with your personal investment in the business, and the financing expected from your lender or investor.If you take your business plan to a lender or investor, you will also be asked to provide personal financial information.Here is the information you need to include in your financial plan: This financial statement should include all of the equipment, supplies, and other items you will need to purchase for startup, as well as fees and licenses, deposits, initial expenditures for advisers, and costs for creating your business structure.You will need to prepare a pro forma (projected) income statement (P&L) for the first three years of operations, showing income and expenses, along with pre-tax income, tax liability, and after-tax income for each of these years.Early on, your business is more of an idea than a reality, so your business plan can help prospective employees understand your goals--and, more important, their place in helping you achieve those goals.4. Joint ventures are like partnerships between two companies.A joint venture is a formal agreement to share the work--and share the revenue and profit.Describe the key management positions you will require; if you have any of these key positions filled, discuss the qualifications of the people who will fill them. The Executive Summary should be interesting to your reader and provide the basic information about the business.Include an organization chart, showing the top positions and the types of employees who will be working in your organization. In particular, the Executive Summary is intended to summarize your financial needs for startup or purchase.Maybe you think you don't need a template for writing a business plan.After all, some entrepreneurs succeed without writing a business plan.