Your business plan is a living document that should project a three- to five-year plan and outline the blueprint for your organization to grow its revenue.
Should your organization need to apply for a loan or microloan, it’s important to have an updated business plan and all of your financial documents ready for your application.
It includes detailed explanations of the key assumptions used in building the model, sensitivity analysis on key revenue and cost variables, and description of comparable valuations for existing companies with similar business models.
In addition, the financial plan assesses the amount of capital the firm needs, the proposed use of these funds, and the expected future earnings.
When compiling your business plan, it’s important to stay true to the identity and brand of your organization. When making your business plan, it’s important to know you’re not alone.
At GROW, we offer numerous training programs and classes, along with one-on-one business counseling, to help you build your business plan and get the necessary financial documents in order.
Somebody asked me what the key elements of a good business plan were, and I’m glad they did—it’s one of my favorite topics.
It gives me a chance to review and revise another of the lists that I’ve done off and on for years (such as the one from yesterday, on common business plan mistakes). Like everything else in business, business plans have business objectives.
Don’t make anybody work to find what information is where in the plan. Use bullets as much as possible, and be careful with naked bullets for people who don’t really know the background. Nothing should be included that isn’t going to be used. Projections look like accounting statements, but they aren’t.
A good business plan is the opposite of written in stone. List assumptions, because reviewing assumptions is the best way to figure out when to change the plan, and when to stick with the plan.