Anyone who has ever sought financing for their business from a financial institution knows that writing a business plan is a prerequisite to receiving any funding. To be considered for financing, most banks and other financial institutions such as venture capitalists will require a comprehensive and detailed business plan from which a thorough understanding of your existing or proposed business, your own goals and objectives and your financing requirements can be obtained.
Focus should be concentrated in some key areas, namely;
- The business
- The entrepreneurs
- The market
- The financial management and planning
- The risks and rewards.
We can provide you with a general guide to writing a business plan but always bear in mind that every business is unique and each plan needs to be tailored accordingly.
All the same, no business plan would be considered complete without the following
- A title page
- An executive summary
- Overview of the business
- Management
- The market
- Sales and marketing strategy
- Financial statements and projections
- Legal and regulatory environment
- Strengths, Weaknesses, Opportunities and threats assessment (SWOT analysis)
- Supporting documentation
The Title Page
The title page should be short, precise and to the point. A good example would be'
"Funding Proposal For Acme Distributors Inc"
Thus, at first glance your banker or potential investor has a fairly good idea what the document you are handing them is all about.
Executive Summary
The most critical part of your business plan is the executive summary. Well written, it can win over a potential financier or investor without having to get into the 'nuts and bolts' which would normally be reserved for the rest of your plan.
It is a summary of the whole plan and captures the essence of what you have included in the various headings within the plan. The executive summary should be the last to write and it should be self explanatory without requiring the reader to refer to other pages of your business plan.
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