Writing a business plan: Financial forecast and team work
Writing a business plan is a complex process, preceded by market research and competitor analysis. Entrepreneurs, starting a business, expect their business to be successful and profitable. To do this, in the process of drawing up a project, it is necessary to focus on all points of the business plan. About what compulsory elements it should consist of, writes Discover Business.
Marketing plan
The goal of the marketing plan is to attract customers who want to purchase a certain product. Preparation of a marketing plan for a product or service of a company begins with an analysis of the business environment and continues until the development of a marketing strategy. The marketing strategy should be user friendly and periodically evaluated to respond to changes and trends in the market.
Marketing plans often include four strategies.
The penetration strategy represents the company’s plans for entering the market.
The growth strategy is based on the successful introduction of the product into new markets and its presentation to different users.
The following strategy analyzes new or alternative product distribution methods to increase sales, such as hiring vendors or creating new outlets.
The fourth strategy controls the communication process between the company and its customers.
The strategies created by the company for the marketing plan influence other aspects of the business plan. For example, a business decision to enter new markets by acquiring an enterprise may be difficult due to the lack of capital to complete the transaction, or the company will need to look for additional capital, attracting investors.
The work plan is closely related to the team and the organizational plan of the company. The work plan is the engine of the machine you call a business. Without a work plan in your business, nothing will be done. This section was created in order to obtain bank financing or for other purposes.
The work plan should contain many details and instructions to guide people within the framework of the organization from day to day for the success of the company. For the successful implementation of the tasks and strategies, the team and management must be able to refer to this document.
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In this section, you should start with a table, which will indicate the position, duties and responsibilities of each member of the business.
Team management plan
In this section of the business plan, the focus is on the people who do business and the management team. Regardless of whether the business plan is intended for internal or external use, readers of this section should clearly understand who is in power. The length and complexity of this section will depend on the size of the company.
The business plan of an individual entrepreneur will be much shorter than a project for a corporation with several management teams and a board of directors.
This section contains a complete list of owners and key management personnel with a detailed description of the role of each in the management of the organization, as well as compensation and benefits for them. A brief biographical note on each of the owners, key employees and members of the board of directors will give an idea of each person’s skills and understanding of what he brings to the organization.
Financial forecast
This section describes the company in terms of finance. Large companies should include information on past performance financial data. As a rule, investors want to see data for at least the last three years, but some ask for information 5 years ago.
The financial data provided should include company earnings, cash flow and their balance sheet. Some lenders may ask for a statement of accounts receivable, accounts payable information and other company debt obligations.
Regardless of how long the company exists, this section should include financial projections for the future. These forecasts must be supported by data compiled on the basis of research and analysis of the industry, competitors, market and products.
Financial forecasts should include the following documents:
Statement of Projected Revenue
Accounting Report
Cash flow statement
Capital Costs Estimate
