A business plan is not optional it is vital to the success of your business. Your business plan has to realistic and a working one, meaning you can add to it as your business grows and develops. Your business plan can spot potential pitfalls before they happen and structure the financial side of your business. It will focus your development efforts and as I previously said will allow you to update it, making it a living document.
Regardless of whether you use your business plan internally or externally you should take an honest and objective look at your business. Your business plan acts as a statement of intent and demonstrates how you’re going to develop and who will play a part in this development as well as how you will manage your money.
As some of you may already know, what you put into your business plan is key to it being a well structured guide to your business. Some of things that should be included in your business are:
• Overview of the business you want to start – many leaders/investors make judgments about your business based on this section alone. • Short description of business opportunity – who you are/ what you plan to sell/offer and to who and why • Marketing and sales strategy – why you think people will buy what you want to sell • Management team/personnel – your credentials and people you plan to recruit • Your operations – premises, production, facilities, management information systems • Financial forecast – translates everything you have said in previous sections into numbers
Your business plan is your main access to business finance. Without a well developed plan you won’t gain the financial help you desire, especially if you are hoping to use the help of a business angel to invest in your business.
When a business angel or any other type of help financially invests in your business they are taking a risk as they are using their money to fund your business so it wouldn’t be just you to lose out if something went wrong. This is why your business plan is so important as it is the tool that will persuade a business angel to invest in your business, no one will come near if they think your business hasn’t got the potential to success; your business plan is the thing that has to convince them otherwise.
The term business angel is used as these people save new businesses when no one else will help. A business angel is a person that invests a lot of money into your business in return for a small share. Although they will often want a say in the running of your business, they not only offer you their money, you get their expert knowledge as well, making that small share worth it.
So who are these people known as business angels? Where does their background lie? Business angels are entrepreneurs or executives of their own successful businesses. They are people who started out just like you, with a business idea that they turned into a reality and turned it into a great success. Due to the background of a business angel you know you are in good hands with someone you can trust. They know what they are doing in the business sense and could be the exact tool you need to turn your business into everything you set out for. Helen Cox is the web master for Angel Start-ups, home of all your business finance needs.
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