Main idea with the Financial Plan, and put into the context of the Business plan - Guees we do not need many outputs etc., and this Phase 2 should not be too long...
IDEA: Have a link to a Google Doc Business Plan Template?
- Have a Business Plan Template also as a Report Template in the BPN ! !
- Have a Financial Plan Template also as a Report Template in the BPN ! !
https://corporatefinanceinstitute.com/resources/knowledge/strategy/business-plan-example-and-template/
A business plan is a written document that describes in detail how a business defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the business from operational, development, marketing, sales and financial standpoints.
What is the business plan used for?
Business plans are important documents used for the external audience as well as the internal audience of the company. For instance, a business plan is crucial to attract investment and loans before a company has established a proven track record.
They are also a good way for companies' executive teams to be on the same page about strategic action items and to keep themselves on target towards the set goals.
Business plans are especially useful for new businesses, but also established companies should have a business plan. Ideally, the business plan is reviewed and updated periodically to see if goals have been met or have changed and evolved. Sometimes, a new business plan is created for an established business that has decided to move in a new direction.
- Businesses that plan grow on average 30% faster (
research).
- Investors and lenders need business plans.
- Business plans reduce risk.
- Business plans helps you make better decisions, both short-term and long-term.
Business plan content
PS! Say something about us focusing on the Financials? ? ?
Link to Business Plan Template (Google Doc).
PS! THERE ARE SO MANY BUS PLAN TEMPLATES OUT THERE ... KISS! HERE ?
https://hustlersdigest.com/how-to-write-a-business-plan/
A Business plan often contain these parts:
- Executive summary
- Product and services
- Market analysis
- Marketing and sales
- Organization and management
- Financial plan
1. Executive summary
The executive summary is an overview of your business and your plans. Normally this part of the business plan is finalized at the end of the writing, as it should be able to act as a stand-alone document that covers the highlight of your plan.
The executive summary is the most important part of your business plan when it comes to attracting investors. Most investors will start by reading through the executive summary, and only if they like what they read there - they will continue to read and possibly ask for more information.
IDEA: 'Bullet points"!
2. Product and services
This is where you describe the problem you solve, your product or service, and how you will compete with existing solutions.
Some questions to help you do this part of the business plan:
2, a) The problem
Describe the problem you are trying to solve.
- What is the problem you are solving?
- Who has this problem, and when?
- What are the current solution to this problem?
- Who are the competitors?
2, b) Your product/service
Describe how you will solve the problem.
- How do you solve this problem?
- How does your solution improve a customer's life?
- How do you set yourself apart from other solutions?
- How does your solution compare with existing solutions?
- What is your product/service's unique quality, value, and benefits?
- Do you have any competitive advantage?
- How do you price your product/service?
- Are there any intellectual property rights and/or issues?
2, c) Next step
What is your next step?
- Is it possible to start marketing and selling your product/service?
- When is your product/serice ready to be sold?
- When do you plan to land a customer?
3. Market analysis
In this section the goal is to identify your best customers, your target market's needs and how these needs are currently being met. You need to demonstrate that you really understand the people you are planning to sell your solution to so that you will be able to make the best decisions in order to reach your target customers.
Some questions to help you do this part of the business plan:
3, a) Start target market
- Who are your first target customers?
- Where are these customers geographically located?
- Which demographic are these customers?
- What are the specific/unique needs of these customers?
- How do these customers currently solve this problem?
3, b) Longer term market
- Who are your longer term customers?
- COPY THE ABOVE?
3, c) Market changes
- Is the market growing over time?
- What are the expected future changes in this market?
- Is your solution positioned to benefit from the expected changes in your indutry?
3, d) Competitive analysis
- Who are your competitors ?
- How successful are your competitors in the marketplace?
- What are your competitors strength and weaknesses?
- Are there barriers to entry, and how do you plan to overcome them?
- What are the unique qualities that makes your solution stand out from the competition?
- How will you protect your future position in the marketplace?
4. Marketing and sales
4, a) Start target market
What is the buying process of these customers?
How do you plan to reach your target market segments?
How you plan to sell to these market segments?
Pricing plans?
What types of activities and partnerships are you planning to do in order to be able to sell to your target customers?
..include a SWOT analysis.
4, a) Longer-term
5. Organization and management
It is really important to have a great team.
Describe your current team and their experience.
Which competences do you need to hire, how and when. PS! you can also buy services from freelancers etc.
What is the current legal structure of the company, business idea?
What is the current ownership?
6. Financial plan
A financial plan is an overview of your current business financials and financial projections into the future. It can be thought of as a road map of the financial expectations and goals for your business.
It is also referred to as the financial section of the business plan.
The financial section of a business plan is one of the most essential components of the plan, as you will need it if you want win over investors or obtaining a bank loan.
Even id you do not need external financing, you should create a financial forecast in order to more
successfully manage your business - It helps you make better decisions.
The purpose of the financial plan is two-fold. a) Attract and convince external stakeholders as investors, banks etc.
b) For your own benefit - to understand what your business need, and how it may perform.
IDEA: A sub-section about using the Financial plan towards external stakeholers
- Explain that can share URL reports ... even complete analysis so that the external stakeholders cann see ,
and possibly test assumptions etc..
-
It is so important for a small business that investors and banks won't even set up a meeting with you if you do not have a financial plan.
LINK TO THE FINANCIAL PLAN BLOG ! !
LEARN:
https://www.patriotsoftware.com/blog/accounting/financial-section-business-plan/
Below we'll dig more into what should be included in the Financial plan
Financial plan
A financial plan is an overview of your current business financials and financial projections into the future. It can be thought of as a road map of the financial expectations and goals for your business.
It is important to note that the financial plan is not the same as accounting.
The financial plan include the same financial statements as the accounting does, that is, the Income statement, Cash flow statement, and the Balance sheet. But accounting looks back in time, and the financial plan looks into the future. That means, that you do not do the financial plan the same way as you do the accounting. Accounting is done following rather strict rules based on things that have occurred. Financial plans are more educated guessess. This also means that the financial plans are less detailed than the accounting.
Be realisitic
Components of a financial plan often includes these ?
1) Profit and loss statement2) Cash flow statements
3) Balance sheet
4) Sales forecast
5) Personell plan
6) Business ratios an a break-even analysis
https://articles.bplans.com/the-key-elements-of-the-financial-plan/
The Financial plan is made up of three Financial statements (LINK?):
- The Income statement
- The Cash flow statement
- The Balance sheet
LINKS? ... brief explanation f
A financial plan:
- Helps determine if a business idea is profitable
- -
- Keeps your business on track to financial health as your business matures
- An integral part to an overall business plan
https://www.brixx.com/the-ultimate-guide-to-financial-forecasting-business-projections/
