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How to Write a Business Plan Efficiently

Learning how to write a business plan effectively is among the fundamentals that a businessman should do; especially if he is considering of setting up a new business. This business plan would serve as his road map which would guide his business toward success. It would also be the means of convincing individuals or institutions into investing in his business or loaning money. However, the process of business plan writing is oftentimes more important than the business plan itself. This is because such process focuses one’s thoughts, and dares him to answer several essential questions about his business. So, when he writes his business plan, his strategic foundation should be identified first. This strategic foundation would explain what type of firm he wants to establish, and what vital elements he needs to achieve that. Consequently, he should write down his vision. He should be able to describe clearly how he wants his company to be a few years into the future. His main products, as well as, his information on clients must be written down in details.

Next, he should be able to specify his financial goals. To earn profits is mostly why most people want to begin a business, anyway. So, he must know how to write a business plan that efficiently determines financial aspects. He should decide if he would keep his business small and simple, or if he would want to earn more by expanding his company. Then, he should envision his target market. However, he has to consider if his target market is large enough to let him achieve his financial goals. He should also think of their present and upcoming needs. To do this, he could interview several clients to know what their needs are. And then, he has to learn the attributes that compose ideal and awful clients. It is imperative to be ready of the possibility that these clients would turn up. So, he should know how to attract the best clients while knowing when to refuse others. He should write everything in complete details so he would not forget anything.

And once he already has a clear mental picture of his future company, he may then decide on his priorities. These priorities would be really helpful in achieving his goals, as well as, his visions. So, he has to ponder on how he would be able to serve his best clients better. It is very important to have a strong bond with good clients. He could review his list to identify which of his clients would be more likely to have a repeat business with him. Then, he should think of ways on how he could help them with their needs. Also, he should know how to write a business plan that gives details on how he could attract newer clients. Well, he could organize seminars or send out newsletters and articles. And with all these plans, he would soon be ready to face the challenges that his new business would bring.

The Secret To Success In Business Planning – Plan Your Work And Work Your Plan

Running your own business is a highly rewarding, but often a risky endeavor. As with anything else, increasing your chances of success begins with preparation. And when it comes to transforming your dream into reality, the key to successfully jump starting your business is simple: plan the work and work the plan.

Whether you are just getting a new business off the ground, expanding the business you have, or purchasing a business, devote plenty of time to planning:

* Begin with a discovery process to confirm the viability of your venture.

* Do your homework.

* Uncover fundamental objectives, insights, opportunities and risks.

* Research the market.

* Examine your offering, market conditions, trends, and the competition.

* Excavate potential problems.

* Outline your goals and objectives.

* Compile the business intelligence you need to create a solid foundation of actionable information to chart your present and future direction.

The next logical step is to develop a plan- -a strategic business plan that functions as a living document to define your objectives, guide your business, and take you from Point A(where you are today) to Point Z (where you would like to be). But remember- -a strategic plan is about more than securing funding- -it is essential to jump starting your business. And once you have written your business plan, follow it up with an action plan that spells out your short and long-term objectives and how you will achieve them.

Just remember this–there is no underestimating the power of planning. As the former CEO of Octel and Lucent Technologies notes, “People usually plan their vacations more carefully than they plan their careers. I am a compulsive planner, but there were times when I had no idea what I was doing.”

Even when you have no idea what you are doing, developing and implementing a plan improves your chances of achieving your goals. This article outlines the fundamental components of crafting a strategic plan to take your business to the next level.

What is a strategic plan?

Strategic planning is the process by which the key stakeholders (you and your partners) in an organization envision its future and develop the procedures and operations that will enable you to achieve that vision.

A strategic business plan serves two purposes. First, it is an internal document that defines your goals, strategies, and tactics. Second, it is a tool for raising capital. However, you need a plan, whether you are looking for capital or not. Without a plan you would not know where you are going and you have no way to benchmark or track your progress.

With a strategic plan you have a road map that enables you to look ahead, allocate resources, focus on key points and prepare for problems and opportunities.

A well-articulated strategic business plan clearly outlines your vision, goals, priorities, strategies, products, services, and financing needs. It also provides relevant information about your company, your management team, and short- and long-term objectives. Highlighting both the positive and negative aspects of your business opportunity, your strategic plan should look ahead from three to five years.

How do I write a business plan?

As they say, there is more than one way to skin a cat. Likewise, there is more than one way to write a business plan. Formats, outlines, and lengths vary. But they all tend to share a generally accepted format and certain standard components.

Your plan must be clearly written, logically organized, and convincingly worded. It should target a specific audience. It should outline the details of financing, competition, strengths, weaknesses, and forecasted financial performance.

As a rule of thumb, when writing your plan, include the following components:

* Cover letter: write a cover letter to introduce you and your business plan to your audience.

* Title page: include a title page that details the content of your plan, your name, address, phone number, names and positions of the executive team, date and contact information.

* Table of contents: add a table of contents to make it easy for readers to find information.

* Statement of purpose: include a clearly stated explanation of your company’s goals and how you will achieve them. For example, your statement of purpose may be “to provide quality, reliable landscaping services for less in the Phoenix metropolitan area.” Describe your value proposition, whether it’s price, convenience, service or another attribute, how much capital you will need, and how you will repay it.

* Executive summary: this is the most important part of your business plan. Include a brief summary that highlights the major points of your plan. Provide background on your business, the market, your value proposition, key team members, projected ROI (Return on Investment), internal rate of return, and current and potential risks.

* Market information: describe your target market(s). Substantiate statements with facts and supporting detail. Include market research on initial and future markets, key market segments, past growth rates, anticipated trends and changes.

* Company: describe your company, its type, history, legal structure, industry, market, principals, revenue size and growth rate.

* Product/service description: describe your offering, relevant business benefits, stage of development, how your product/services will satisfy a real business need and enable you to compete.

* Management team: include detailed information on the core members of your team–the people who will run the company, as well as senior partners, attorneys, financial and business advisors. Include names, titles, experience, skills, responsibilities and compensation.

* Potential risk factors: include an assessment of the risks facing the company. Describe the worst-case scenario and anything that could go wrong today and in the future. Offer strategies for overcoming risk.

* Execution/action plan: describe how you will translate your business plan into actionable results down to the finest detail. Describe how you will obtain licenses to do business, open an establishment, get products on the shelf, hire employees, and forge partnerships. Describe production schedules, delivery processes, and customer service policies in order to set operational benchmarks to measure progress.

* Financial information: Include a section that projects future revenues and profits three to five years out. Base this information on best-case, worst-case and most likely-case scenarios. Summarize financial data like cash flow, income statements, balance sheets, banking relationships, terms and rates of loans, financing plans and working capital requirements.

* Legal preparation: includes corporate bylaws, patents and trademarks, licenses to do business, employment agreements, and customer contracts. Anticipate the legal and documentary setup your business will require. Writing a business plan can seem like a daunting task. However, there are many resources available to help you prepare a sound plan. You can find books in your local bookstore, software programs and templates online and in local computer/software stores or you can work with a consulting firm, a nearby Small Business Development Center or a local business school.

No time like the present to start to plan your work and work your plan. Happy planning…>

Hair and Beauty Salon Business Plan

You will use it throughout the running of your business as well. You will be able to use it to help you through difficult times and to help you to grow your business time and time again. It is a necessary tool for any new or starting salon. Writing your hair and beauty salon business plan will prepare you for what your company will experience.

Hiring A Professional
It is very important to consider the benefits of hiring a professional to write your hair and beauty salon business plan. Doing so will allow you to have a professional plan that offers the right details and elements needed by organizations that you plan to work with. It also allows you to have the benefit of the experience of those professionals. When you write this plan yourself, you will need to do all of the research and fact finding on your own. On the other hand, when you hire a professional to write it, they do this work for you, allowing you to focus on getting your business started. While you most certainly can write your own hair and beauty salon business plan, you should consider hiring a professional to do for these benefits.

For The Lender’s Benefit
One of the key reasons to write a hair and beauty salon business plan is to get the benefit of your lenders, or potential lenders. If you walk into a bank and ask for a loan to start your business, most will not think twice about telling you no. They need to see facts and figures and to have in writing a sample of what your business is going to do for them. In other words, unless you can keep the loan in good standing and earn them interest, you may be too large of a risk for them to take on. Therefore, you need to present your business to the lender through an organized business plan that shows them why your business will be profitable and will ultimately allow you, and the lender, to make a significant profit.
For Others
Your hair and beauty salon business plan will also provide your loved ones with a clear indication of what you plan to do. It should also tell your management staff and employees what your business offers and what its goals are. Ultimately, it should establish a budget and financial plan as well as provide a detailed outline of how to handle virtually all problems that your business will be going through.
Writing a winning hair and beauty salon business plan allows you to push your business forward. Always consider the benefits behind writing one!
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