24 Oct 2016
Hello again! It’s Matt from AskForMatt.com, and this morning, I had a client call me. He told me that his son wants to start a business, so I asked him what his son’s business plan looked like. “Hmmm. Not sure he has one. What is that?”
That got me thinking…how many businesses actually have a thought out and written out business plan? If you’re looking for investors or a loan to start your business, you’ll need one! If you are already in business, do you have a business plan for the coming year? If you do have one, are you preparing to update yours?
Patrick Hull is a contributor to Forbes.com, and while researching for this blog post, his simple business plan made sense to me. I hope you’ll be to use it yourself.
- Mission statement and/or vision statement so you articulate what you’re trying to create;
- Description of your company and product or service;
- Description of how your product or service is different;
- Market analysis that discusses the market you’re trying to enter, competitors, where you fit, and what type of market share you believe you can secure;
- Description of your management team, including the experience of key team members and previous successes;
- How you plan to market the product or service;
- Analysis of your company’s strengths, weaknesses, opportunities, and threat, which will show that you’re realistic and have considered opportunities and challenges;
- Develop a cash flow statement so you understand what your needs are now and will be in the future (a cash flow statement also can help you consider how cash flow could impact growth);
- Revenue projections; and
- Summary/conclusion that wraps everything together (this also could be an executive summary at the beginning of the plan).
At Premier Investments of Iowa, we take all of our clients through the process of creating a financial plan. It’s how we identify a path to growth. So, if we do that for our personal investments, why shouldn’t we do it for our businesses?
I hope that you found this blog helpful! As always, if you have any questions about this or other subjects, feel free to AskForMatt.com!