Every business that is starting, or that has been operating for a while and is planning an expansion or entering a new market, should have a business plan. This can be a necessary document to show investors and suppliers, and it is key to have before applying for loans or other funding. If you need assistance putting a business plan together Echelon Consult has tons of experience and welcomes you to connect today.
What is a Business Plan?
A business plan is a document that describes the current plan for the business and each of the operating factors involved. It includes the people who are involved and what their roles are, as well as a list of all of the assets, debts, and balance sheets, among other financial papers. It will include the mission, the vision, and the intentions of the business as a whole, and will address all of the necessary plans. Finances are not the only consideration in a business plan, but they are a main consideration, so hiring a fractional CFO agency is highly recommended if you do not have anyone full-time in this position.
The business plan will also address marketing, plans for location and rent or overhead, address the need for training, and set goals for the business and individual. It outlines exactly how the business operates and expects to move forward. Included will be equipment, locations, expenses, income expected, prices, products and supplies, and accommodations for loans or investments that are expected or that are being requested.
Who Will See Your Business Plan?
You will be showing the business plan to many people who will be investing in, loaning money to, or becoming involved in your business. This will include banks and loan officers, management companies for building or space rentals, loan or finance officers for any equipment that you need, family or friends who want to become involved or offer investment to be supportive, and managers or others that you will be hiring to help your business move forward and follow the plan.
Making a Business Plan
You can create a business plan yourself, or you may hire a business consultant to create a business plan with you. It can be a very detailed document and it requires knowledge of the licensing and other expectations in your area. The more details that are included in the plan the more likely people will take it seriously, and creating predictions for income and taxes or other expenses can be difficult for someone who is not intimately familiar with the industry. It will also work as a guide for you as you move forward and ensure that you are taking all of the steps necessary, so having a professional involved may improve your chances of success.
Business plans are necessary for both new and expanding companies and may be adapted and adjusted as time passes and the market changes. It should be taken into consideration before each decision, to determine if each decision will move the business towards its goals, it will show if any or all of the goals set are being met, and it will create financial and other expectations for those who are involved in the higher levels of business operations and finances.
