Business plans are crucial documents required for anyone planning to buy or invest in a business. A business plan is essentially a written document which describes in great detail how exactly a particular business Plans to achieve its objectives. Such business plans are used by startup companies to obtain outside financing and eventually bring in investors as well. Nevertheless, there is another use of such documents – they can serve as effective coaching tools for those embarking on their own venture.
So what makes a good business plan? An ideal one should include (but not be limited to) the following: a detailed sales forecast, an estimate of the amount of startup capital required, a market analysis, and a marketing strategy. The sales forecast is critical as it shows what kind of sales will occur; moreover, a thorough forecast should take into account prospective demand for the product or service offered by the business. The market analysis provides data relevant to the target audience; meanwhile, the marketing strategy shows how the venture will utilize existing marketing outlets, attract new ones, and ensure that existing customers will come back for more. Ideally, all three aspects of the plan must be well formulated and supported by solid research methodology.
Now that you’ve done your research, put together your business plan, and created your marketing strategy, how do you go about evaluating the plan’s efficacy? For one, you’ll want to ensure that all the numbers involved actually add up. Any numbers that don’t match your initial assumptions will likely prove to be an underestimate. Similarly, any financial projections you make need to be backed up by sound reasoning and, if possible, some real-life evidence.
Evaluating your business plan and its recommendations is best done in several stages. The first step is to conduct interviews with potential funding sources and various business acquisition experts. Once you’ve gathered the information, it’s time to put them to the test using your own executive’s summary for the business acquisition. Assess how well your executive summary and business plan match up to each other. Also assess whether they are in line with the company’s goals and objectives. Finally, ask them for input about any legal or regulatory recommendations.
In the final analysis, you should still have a good business plan. After all, you spent significant time compiling a business plan that presents a good picture of your startup business. By making sure it is still sound after following the above steps, you’ll be less likely to have trouble following through on the investment you make in a startup business. If your executive summary and business plan are still robust after following the above steps, then you’re ready to move ahead and apply for funding.
Funding seed rounds and third party loans are common ways for startups to get the capital they need to start their operations. However, these methods can be complicated and often require the approval of multiple lenders. In this scenario, it can be easier and more effective to apply for a loan from a private investor, as opposed to a startup lender, who may not have as much to lose. And when it comes down to it, most private investors are interested in financing new businesses with sound business plans and an impressive track record of success.
BizAnvil also operates GSF Lending, a private business loan brokerage that helps new entrepreneurs with financing. We offer everything from unsecured personal loans up to $500K to Merchant Credit Advances, Property Secured loans, to Venture Capital pitches. Reach out today for details and an NDA. We’ll get your new startup funded, assemble a proper and effective business plan and walk you into a funding source.