How to Write the Perfect BUSINESS PLAN

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Welcome to the ten minute MBA, I'm yourhost Scott de Clary. On the ten minute NBA, I give you actionable insightstool, strategies, techniques that you can use to start scale grow or tax yourbusiness today, I'm going to give you a high level overview of what you need todo to write a highly effective business plan. Why do you need a business plan?Well, a business plan will help you build a business. It is what isrequired to help organize your thoughts as well as if you want to get anyoneelse on board. If you want to go raise money having a business plan is key andultimately, even if you aren't going to raise money, a business plan reallyhelps you look into the future and predict outcomes for your business.It's not a crystal ball, but it will help mack you out a path from where youcurrently are and where you're headed it will help. You estimate your totalstartup costs. It will help you project...

...revenues and profits. It will help youconvince investors to invest. If that's the root you want to take, it will helpyou be competitive from this start, it will help you anticipate any challengesthat you may have and, most importantly, it's going to keep you on track. Itensures that you focus your attention on the right things and helps you avoidmistakes that could totally sink and kill Your Business. So I'm going towalk you through step by step, some of the items that you should have in abusiness plan now, just before we dive into this. Unfortunately, many businessplans are wildly unrealistic. The initial excitement of starting abusiness often causes entrepreneurs to massively overestimate how successfulthey'll be and underestimate the challenges the encounter in order to beeffective. A business plan needs to be realistic. So before you launch, youwant to be relatively confident that you have a good chance of succeeding,which means that you have to be honest with yourself about the expectationsthat you're setting the projections that you're setting so on and so forth.In many ways, a business plan should...

...help you decide whether or not youridea will pan out it's possible that you may want to put together YourBusiness Plan before you actually try and take a product to market, becauseyou can realize, as you're mapping this out as your strategizing, that perhapsthe potential outcome isn't as great as you initially thought, and that's okayand it forces you to go back to the drawing board. But it will force you totake the necessary time to do the market research analyze, your financialneeds and map out a proper strategy for the future. Don't look at a businessplan as a thing. That's preventing you from getting started view it asbuilding a foundation for a successful lasting business. So these are theparts that you have to have and I'm not going to go into too much death becauseagain ten minutes, but to start off you have an executive summary. So this isthe First Section of the business plan. It gives people a general sense of whatYour Business is all about, what products or what services you providewhere you've been where you're headed.

There are six things that you shouldhave in a business plant and you should start to introduce these six things inyour executive. Summary Number one mission statement, number two generalinformation, such as founding date names and rolls of founders and otherimportant details. Number Three Company highlights including financialsuccesses and other key successes, number four products or services thatyou sell: Number five financial information, including funding goals,current sources of funding, revenue, etc and then number six future plansfor the business. So, if you're going to be summarizing, these things thinkof your executive summary like a detailed elevator pitch. It highlightsthe most important point of your business without going into all thedetails, and you may actually want to consider writing your executive summaryafter you've written the rest of Your Business Plan that way you're morefamiliar with the relevant information. Now after your executive summary, youhave your company overview. This section provides more detail regardingexactly what your business does and how...

...it's structured. You can start byexplaining the industry you're in your primary customer base the big problemthat you solve for customers, how you solve that big problem, essentiallyyou're explaining the reason for Your Business's existence, you're,identifying a specific customer need in a specific market and then clarifyingexactly how you'll meet that need the overview section functions as yourunique value proposition. Remember that term it clearly and concisely explainsthe unique value that your business offers. If you're struggling with thissection, try to answer the following questions: Who Do you serve? How do youserve them? You See. If you can answer these questions, then you know yourunique value proposition and that's going to carry you through, as youeventually take your product to market next section would be a market analysis.The market analysis section of Your Business Plan provides in depthinformation about your industry, your specific market and the competition. Ifthis section is done properly, it...

...assures readers that you know whatyou're getting into, and your market analysis seek to include the followinginformation: key industry, size, growth trends and other really importantdetails, target market data, ideal customers, their specific needs anddemographic details, target market size, yearly amount spent, purchase frequencyprojected growth market share potential percentage of target market. You canacquire potential barriers to entry things that might make it difficult tosucceed in the target market. Competition top competitors marketshare strength. These are the things that you have to include when you'redoing an in depth analysis. This section will take a significant amountof research, but it's time well spent. First and foremost, it prepares you tosucceed. Second, it helps. Investors know that you've done your duediligence. Next section would be the organization and management first spellout the general structure of Your Business, both in organizational termsand in legal terms. In this section, for example, where does each key stayholder fit into the bigger picture of...

...your business include an organizationalchart? This could also be called a cap chart or capitalization table or acapitalization chart. It shows who owns what how many co founders, how manyequity percentage equity share so on and so forth, and then, in terms ofyour legal set up, are you an ll C, an as Corp a Sea Corp, a GeneralPartnership, a Sol proprietor? How have you set up Your Business after that?You want to describe the background of your key team members. This part isespecially important if you're seeking funding, because investors want to knowthat you have experienced successful individuals who can ensure that yourbusiness also succeeds. And finally, you want to describe any key hires. Itwill be necessary. This may not be immediately relevant, especially ifyou're just getting started, but it will matter much more as you grow andexpand. The next section will be products and services. This sectionexplains exactly what products or services your business will provide tocustomers start by describing your particular product or service andspecific need. It will meet. It's really important to clarify exactly howyour product or service will stand...

...apart from the competition within asection, you should also discuss the product or service status. Is it readyto take the market development objectives, for example, if it's notready to go, what steps need to be taken to get it ready to go proprietaryinformation? Do you have any intellectual property, patents orproprietor information that is essential to the success of YourBusiness and supply chain? Do you depend on any suppliers or vendors?Have you set up those relationships yet? Do you know what that looks like andmake your product or service really shine in a section? It should beabundantly clear both to you and to the reader that you have something uniqueto offer and that you're in a prime position to attract customers nextsection would be your marketing in sales. This section explains how you'regoing to get your product or service into the hands of customers. Yourobjective in this section is to make clear both how you will make customersaware of your product or service and how you'll convince them to buy it fromyou. The first element and your marketing plan needs to be the positionyour product and how you are...

...positioning your product in relation toyour competitors. Will you position yourself by offering lower pricesuperior quality superior service? What is your differentiator, or yourremember, unique selling proposition next discuss the specific promotionalmethods you're going to use to get the word out about your product or serviceadditionally clarify the metric you'll use to evaluate whether or not yourmarketing efforts are working, for example, leads generated, social mediareach, website, visitors and, after you've laid out. Your marketing planthen discuss your sales plan. What method will you use to convincecustomers to buy from you cold, calling in person, meetings, webinars settingup funnels and then, lastly, who's actually going to be doing the selling?Do you need a sales force? Is it e commerce who's going to train your team?How Big Wild your team be? Are you going to sell the first million dollarsin revenue as a founder, lay out the budget for your sales and marketing?This will help readers gauge the scope of your efforts and possibly yourpotential results and funding or sales required to keep this machine growingafter your sales and marketing focus on...

...your financial projections. This is thenext section in this section. You want to paint a clear picture of yourbusinesses. Current financial status well also mapping out where you hope tobe in the future. Investors will closely examine this section todetermine whether they want to give you funding if you've been in business fora while include as much financial data as possible, including incomestatements, balance sheets cash flow statements, operating budgets, accountreceivable and payable statements, if appropriate, documentation of any debtyou're carrying any other investments that have been made. Your financialprojections for the future will either be based on your past data or industryand competitive research. If you don't have past data, if you're not sure howto create these projections, consider hiring an accountant or financialadvisor to help you. The next section would be your funding requirements, andthis obviously only applies if you're actually looking for funding, but inthis section, you'll lay out exactly how much funding you need over the nextsay five years. Explain how you're going too use the funding to helpachieve your goals. If you're going to...

...include this section, make sure youinclude the following details: the amount of funding you need right now.Funding you'll need down the road for up the five years, type of funding,you're looking for loan investment, etc and the terms you're requesting for thefunding. So how much equity are you willing to give up, for example, oroptions or revenue share additionally, explain how you will be using the funds?Will you be acquiring inventory, paying down a debt, hiring employees? It iscritical to lay out your future financial plan so that investors have agood idea of what they're getting into they need to know exactly what they'regoing to be investing in, so that you don't have a tumult and investors feellike they've, been lied to or bamboozled so as much as possible. Youalso want to make sure that you're customizing your funding request, basedon who you're talking to so, if you're, asking a bank provide them with arepayment plan, if you're asking an investor, give them an estimated Royand then, lastly, to wrap all this up, you need an appendix that basicallycontains all of the supporting...

...documentation and information that willsubstantiate what you've written in all the previous sections. In this section,you may want to include credit histories permits, product pictures,legal documents, licenses, patents, contracts in all the previous sections,you're trying to paint a compelling picture of what Your Business is likeand where it's headed you want to provide the reader with enough data tohelp them grasp your vision, but not so much as you bog them down. So theappendix allows you to provide extra details to the reader withoutdisrupting the overall business plan review experience. If the reader isserious, they want to look at these details. They can simply refer to theappendix, and that, in summary, is a business plan. Each one of thesesections. We could probably do an entire ten minute segment on, but thiswill get. You started. Remember any business questions that you have. Don'tworry. I got you. This has been another ten minute, NBA, that's it for tonight.I will see you to morrow. I will see you to morrow. I.

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