Develop a Business Plan

Whenever I have come across the profiles of the most successful businessmen, I have always marveled at the business acumen of these businessmen. I wonder what was it that made them so successful and rule the world? Was it the business plan, the sheer passion, grit or determination or that germ for business? I feel even if they had the making of a businessman and had that passion and all, a major chunk of credit to their success goes to the business idea they thought of. Another thing is the way these people developed the business plan. Here in this article, I will try to find out secrets of how to develop a business plan.
Developing a Business Plan
It is not exactly easy proposition, developing a business plan, as there are innumerable things involved in it, from the very basic things to extremely complicated and tedious ones. Basically, while creating a business plan you should include an executive summary involving -
    * A brief description of the history of the company.
    * The company's objectives
    * Description of the company's products or services.
    * The market the business intends to compete in.
    * A persuasive statement as to reasons and method for the success of the business.
    * Projected growth for the company and the market.
    * Mention of the core management team.
    * A description of funding requirements, with a time-line and the usage of the funds.
Homework on the Service or Product
Forget the business plan for sometime. Decide what is the product or service you are going to offer. Without that, it is impossible to go ahead and consider what comes next in your business proposal. Research on the market trends and what are the products and services which will be a hit with the consumers is fundamental with regards to understanding the intricacies of how to develop a business plan. If you have had an experience in product or a service, then your task just might become easier. In addition to this, also think of the name and the overall profile of your company. Have a thorough understanding of the products and services your company is going to offer. You might want to check out how to write a business plan proposal.
Money Matters
Once you are done with the overall profile, think of the capital required for it as well as how much you intend to make from it or can make. To be clear about that you will have to chalk out and create a financial profile of the company. When you mention this while writing the plan, it should include your current assets, your liabilities, projected income and monthly expenses within a range of six months. Having all this data will help you establish a viable financial objective for your business. When it comes to how to develop a business plan, this aspect can make or break your deal. So please be very careful about this.
Who are the Competitors
The market is going to be like a big bad world out there. Therefore, you also would need to study your competitors and how you propose to deal with competition and what gives you an edge over them. You will have to mention that while talking about how to write a business plan. So again, this too will involve a little bit of homework.
Finally, once you are done with all these things in connection with how to develop a business plan, put all this on paper. Tackle the points mentioned above and elaborate them as per the research and statistics you have got. Make it as crystal clear as you can and get started! I am sure now you know how to make a business plan! Take a look at business plan templates on the Internet further to get better idea.

Business Plan Executive

An executive summary is the gist of a business plan, which provides an overview of the detailed business writing. Business plan executive summary is necessary for every business. This brief document highlights the unique selling points of your plan. The purpose of this document is to shed light on the fundamentals of your business plan. It has to be written with utmost clarity and simplicity in order to engage and interest the reader. Any kind of ambiguity will make him lost in translation. An executive summary is the first document that most of the people look at. Thus to make the lasting impression, it needs to be written in a manner that is easily understood.
How to Write an Executive Summary
    * An executive summary can only be written after the entire business plan is ready.
    * Before you begin writing your summary, go through your business document once again and highlight the points you'd want to bring out in the summary.
    * A business plan executive summary begins with the name of your company, location of your office or headquarters, services you are engaged in or products you manufacture and the purpose of writing the summary. This can be your introductory page to the summary. However, do not extend your introduction beyond a page. Go through a few executive summary examples to get useful hints.
    * The length of an executive summary can vary from 5-10 pages, depending on the length of your actual business plan document. A summary is about one tenth of the total document.
    * Including all the points from the plan in the summary, might be difficult. However, even if you are omitting any sections, make sure they come in the same order as the detailed business plan.
    * Know your audience well while writing summary. If you are writing for a potential investor, you will have to explain your plans with appropriate examples. However, if you writing it for a regular reader, the language and style will have to simple and free of jargon. The points have to be stated with conviction. The slightest doubt will jeopardize the interest of the investor.
    * Explain to the reader your expansion plans, your growth predictions and feasibility of it all. Go through business plan executive summary samples written by other businessmen to get an insight.
    * Once you are done writing the summary, proofread the same for grammar and factual errors. It must also be formatted well, which allows the reader to easily go through the document.

Feasibility Study Template

If you are the organizational head of the company or own a business, you would have surely come across a feasibility template before starting a new project. A feasibility study can be thought of as an analysis of the potential of the proposed venture which helps in determining whether it will be profitable and whether you should proceed with it. For example, if your company specializes in product A and you are thinking about launching a product B to increase your sales, you would definitely like to do a bit of research about the feasibility of launching the product. You would like to know your target audience, their behavior patterns and what would be the factors they consider before putting their money on a product. This is where a feasibility study helps you. It gives you the complete know how about the background of the proposed venture so that you have done your homework before entering new territories.
Benefits of a Feasibility Study
Some of the benefits of a feasibility study are:
    * It helps you in knowing all the factors that can affect your planned venture.
    * It also helps in knowing your strengths and weaknesses before starting with the project so that you can capitalize on your strengths and improve on your mistakes.
    * If you are planning to borrow from banks or money lending agencies, a feasibility study of your proposed venture helps you in convincing them as they get the impression that you have a solid plan of action and you have read the conditions very well.
    * A feasibility study also helps you to understand the competition in a better way.
Feasibility Study Example
For example, you plan to launch a fast food joint in a locality and while doing a feasibility study, you come to know that the residents of the locality are diet conscious and averse to food containing high fats. You also learn that the most successful restaurant in the locality has marketed itself as a company that is concerned about the health of the people. A feasibility study will tell you whether going ahead with your plans of launching a fast food outlet would be feasible or not. It can give you the data regarding the break-up of the population of the area, about the young population of that area, who have to always depend on outside food, or people who don't mind devouring on a burger once in a while. Once you have taken a look at all these factors, you can make a calculation about the money you will be investing and the profits that you are expecting.

Strategy for Your Business

Exit strategy should be planned, keeping in mind the long and short-term objectives of the company owner. It should be considered and developed right from the beginning, once you have finalized with your long-term and short-term goals. Keeping the expectations according to your business, and planning the strategy will be helpful. Before you plan the exit strategy, it is required to concentrate on strategic planning, organizational planning, and financial planning of the company. The three important questions which you must address to yourself about your business before writing the plan are: to whom, by when, and for how much.
Writing the Exit Strategy
Choose the Best Exit Strategy for your Business
    * Selling the business to a family member.
    * Selling the business to other company, which is usually larger than yours (acquisition and merger).
    * Selling the business to Employee Stock Ownership Plan (ESOP), in which the stocks of the company is sold to the employees of the company itself.
    * Initial Public offering (IPO) is a risky strategy in which the stocks of the company are sold to the public. The investors need to take a risk because the traders get in (buy stocks) and out (sell stocks) and may cause a financial swing.
If none of the plan works out, the business owner may have to resort to liquidation.
Write Down the Questionnaire Document
    * How much investable assets should I have in my account?
    * What would be the tax impact on the amount that I would receive after I quit?
    * What are the legal agreements that I should sign before I complete the disposal?
    * Does my business have the required opportunities and value from the view of the buyer?
    * How can I clear my debts, successfully?
Financing your Business
Choosing the source of capital is very important, as it will directly influence your decision to exit. The objective of choosing your financing is not only about increasing the funds, but it also concerns the cost of both money and relationships, if you are borrowing the money from your family or friends.
Dealing with the Taxing and Other Legal Issues
Discuss the legal and tax related issues with an experienced corporate attorney and other business accounting professionals. Some of the legal and tax issues that you must discuss with your advisors are listed below:
Legal Issues
    * Liability of Owners, officers and directors
    * State and federal security laws
    * Rights of minority owners
    * Cost of transfer of ownership
    * Buy-sell agreements with shareholders and partners
Tax Issues
    * Capital gains upon transfer or sale of the business
    * Corporate and personal taxes
    * Properties owned
    * Reasonable compensation limits
    * Retirement plans
    * Income tax
    * Capital Gains Tax (CGT) tax
Actions that Should be Implemented Before Exiting
Begin the planning and the implementations, once you have set the timeline. Implement the following actions before finalizing the agreements and the complete disposal.
    * Train the new managers.
    * Start your debt reduction program.
    * Update your business plan.
    * Dispose the loss-making subsidiaries and surplus machinery.
    * Approach venture capital backing for MBO (Management Buyouts).
    * Discuss the propositions with the concerned bank management.
    * Appoint lead adviser.
    * Conduct environmental audit.
    * Reduce the stock levels of your company.
    * Review personal financial positions.
    * Undertake mock due diligence.
    * Most importantly, plan the activities to get engaged after your exit from the business.
Planning out your exit strategy at the last minute will never be helpful, because, all the factors required for your successful exit will not fall in line. Also, finding out a buyer in a short period and disposing the assets quickly will not fetch you the desired profits. So, planning ahead is necessary.