Business Plan
A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. The basic components include a current and proforma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
Importance of a Business Plan
The importance of a comprehensive, thoughtful business plan cannot be overemphasized. It is important for:
- outside funding
- credit from suppliers
- management of your operation and finances
- promotion and marketing of your business
- achievement of your business goals and objectives
Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just do not have enough time. But just as a builder won’t begin construction without a blueprint, eager business owners shouldn’t rush into new ventures without a business plan. It is true that the marketplace changes too fast for any long-term business predictions to come true; nevertheless, the first year’s month-by-month predictions are usually 90% true. Thereafter, slowly it becomes calculated guesses, but still planning provides the impetus, energy, and drive necessary for the business to achieve its objectives.
Before You Begin
Before writing your business plan, you need answers to the following core questions:
- What service or product does your business provide and what needs does it fill?
- Who are the potential customers for your product or service and why will they purchase it from you?
- How will you reach your potential customers?
- Where and how will you get the financial resources to start your business?
The clearer are your answers to these questions, the better will be your business plan. Be as detailed as possible. Writing the answers down provides a firm ground on which your business plan may be based.
Tentative Index of a Business Plan
[ Note: The index will change according to the information obtained/to be disclosed. Not all information may be disclosed. For example, if you are not applying for a loan, then the last three year's tax statements of principals need not be disclosed. Much other information can be added or deleted as per the market's demand and supply conditions with respect to your business.]
INDEX
1.0 Executive Summary
1.1 Description of business
1.2 Objectives
1.3 Mission
1.4 Marketing
1.5 Competition
1.6 Operating procedures
1.7 Personnel
1.8 Business insurance
1.9 Keys to success
2.0 Company Summary
2.1 Company Ownership
2.2 Company History (for ongoing companies) or Start-up Plan (for new companies).
2.3 Company Locations and Facilities
3.0 Products and Services
3.1 Product and Service Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing and Fulfillment
3.5 Technology
3.6 Future Products and Services
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
4.3.1 Industry Participants
4.3.2 Distribution Patterns
4.3.3 Competition and Buying Patterns
4.3.4 Main Competitors
5.0 Strategy and Implementation Summary
5.1 Strategy Pyramids
5.2 Value Proposition
5.3 Competitive Edge
5.4 Marketing Strategy
5.4.1 Positioning Statements
5.4.2 Pricing Strategy
5.4.3 Promotion Strategy
5.4.4 Distribution Patterns
5.4.5 Marketing Programs
5.5 Sales Strategy
5.5.1 Sales Forecast
5.5.2 Sales Programs
5.6 Strategic Alliances
5.7 Milestones
6.0 Web Plan Summary
6.1 Website Marketing Strategy
6.2 Development Requirements
7.0 Management Summary
7.1 Organizational Structure
7.2 Management Team
7.3 Management Team Gaps
7.4 Personnel Plan
8.0 Financial Plan
8.1 Loan applications
8.2 Capital equipment and supply list
8.3 Important Assumptions
8.4 Key Financial Indicators
8.5 Break-even Analysis
8.6 Projected Profit and Loss
8.7 Projected Cash Flow
8.8 Projected Balance Sheet
8.9 Business Ratios
8.10 Long-term Plan
9.0 Supporting Documents
9.1 Tax returns of principals for last three years Personal financial statement (all banks have these forms)
9.2 For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
9.3 Copy of proposed lease or purchase agreement for building space
9.4 Copy of licenses and other legal documents
9.5 Copy of resumes of all principals
9.6 Copies of letters of intent from suppliers, etc.
Conclusion
A good business plan is imperative for any business be it small, medium, or big if it needs to survive in today’s tough business environment. Like a warrior sharpens his sword for 6 hours for a battle of 6 minutes, similarly a businessperson should take several days to prepare his business plan in order to survive for many years.
Is Business Fashion School Right For You?
Okay, so it may sound a little funny but fashion business school is something that many fashion students are looking into now more than ever. Their school does sound a bit ludicrous, but if you consider the reasons why people attend school in the first place the idea of fashion and business together only make sense.
These degrees are about learning the ins and outs of the business and refining your skills whereas business courses are for people who want to manage or start one of their own. For those out there already attending school, it is a safe assumption to say that many of them dream of having their own line some day. A fashion line is a business, and that is where fashion business school courses can come into play.
Who Needs Business School…Right?
Who cares if you are a pro at making A-line dresses fit even the sloppiest of figures if you can’t run your business properly? It is insane to think that so many people are failing to consider the vital role that this business industry plays in their chosen field.
What would the industry be if it weren’t for fashion business schools? If nobody knew how to run a business there would be no Versace, no Louis Vuitton or Donna Karen. Fashion in itself is a business, and those students out there who are serious about their success will put some consideration into fashion school [http://www.fashion-school-info.com/best-fashion-schools.html] business courses.
Deciding if Business School is Right for You
It is important to realize that while it may seem like common sense, not all schools are going to offer courses in business. School courses are designed for one thing or another, but not always both. Find out what type of coursework your chosen school offers and see if you can get some good courses in it in while you are in attendance.
This means that not only will you be able to learn everything that you have ever needed to know about the industry, but you can also learn the ins and outs of it as well and how to handle certain things that your business may throw at you. If you become a millionaire you can hire a manager but in the meantime, you are going to have to learn something or other about business in this industry. School may be the way to help you do just that.
Small Business – Ten Traits All Small Business Owners Must Have To Be Successful
Winning in Small Business is as hard as running a race in the Olympics, actually I think harder, but the interesting fact is that the traits to succeed in small business are the same ones athletes use to succeed in any sport. Essentially the ten traits small business owners must have to succeed are the same ones we all must have if we ever think that we will achieve something in our lives.
Trait 1: Know Your Purpose
The first trait all small business owners must have is to know their purpose. First and foremost what is it that you want? What is it that youu want to achieve? Once you know what your purpose is then this will be the force and motive behind you taking this journey.
Trait 2: Have a Desire to Succeed
How many people do you know want to win Lotto? Probably a lot … Did you know that most people who win the lotto actually spend every cent of it in the first 12 months? Why, because they have not got a desire to use this money to succeed. To be truly successful you must have the desire to want it so bad that you will do anything to achieve your objectives
Trait 3: Have Faith That You Can Achieve What You Want
Just like an athlete, you must have faith that you can and will achieve your objective. If you do not have faith that you can achieve success in your business, then you will simply give up when the things get tough and let me assure you as a 10 year veteran in small business, things at some point will get tough and you will skate along the edges of losing everything. You may even fall over the cliff, but you have to have faith to climb up the cliff and continue on your journey.
Trait 4: Have a Clear Plan
Without a plan, you will simply be like a lost animal in the wilderness. Let me ask you this,do you go on holidays without a plan of what you want to do and where you want to go? Absolutely not, because you would simply be lost and would probably see and do nothing. It amazes me though how many small business owners plan their holidays more rigorously than they plan their small business. Remember the old clich