How to write a business plan – Part two

This is part 2 of what to include in a business plan. You can find part 1 here.

 

Part 1

The Executive Summary

The Company 

People in your business

Long & short term Goals

Market Analysis & Customers

Key Competition Analysis

The Products and Services

Marketing

Social Media Strategy

 

Part 2:

The Financial Plan

Sales Forecast & Start Up Costs

Cashflow

Profit & Loss

Funding

 

The Financial Plan

The financial plan will include an overview of your income and expenses, as well as your projected sales and profits. To do this, you will need to gather data on your past financial performance, as well as your current financial situation. This data will help you to forecast your future sales and profits, and to determine how much money you will need to cover your expenses.

Once you have created your financial plan, you will need to create a sales and marketing plan. This plan will detail how you plan to generate sales for your startup. It should include a budget for advertising and promotions, as well as a sales strategy. 

 

Sales Forecast & Start Up Costs

The sales forecast estimates your future sales, costs, and profitability. It’s an important step in the business planning process and will help you secure financing from investors. Start-up costs are also a key part of your forecast. These are the one-time expenses associated with launching your business, such as legal fees, marketing, and office supplies. Knowing your start-up costs will help you determine how much money you need to get your business off the ground. You can list these projections on monthly figures and annual figures. You may wish to consider seasonal demands, i.e christmas sales, for your products or services.

Cashflow

A cash flow projection is a forecasting tool that can be used to estimate an individual’s or company’s financial solvency over a specific period of time. The projection is based on past and present cash flow, and can be used to predict future cash flow. The purpose of a cash flow projection is to help individuals and businesses make financial decisions, such as when to invest in new projects or how to manage current expenses. Show this with a graph.

Profit & Loss

Profit and loss is an essential part of any business plan. By understanding how to calculate and report it, you’ll be able to make sound financial decisions for your business.

There are two key elements to profit and loss: revenue and expenses. Revenue is the income your business generates from sales or other sources. Expenses are the costs of running your business, including the cost of goods sold, operating expenses, and taxes.

To calculate profit and loss, you’ll need to track both your revenue and your expenses over time. This can be done with a simple spreadsheet. Once you have your financial data, you can use it to calculate your business’s net profit or loss for a given period of time.

Funding

As a small business owner, it is important to understand your options for funding. There are many sources of funding available, each with its own advantages and disadvantages. The best source of funding for your business will depend on your individual circumstances.

Family and friends

One common source of funding for small businesses is loans from family and friends. This can be a good option if you have a good relationship with the person loaning you the money and you are confident that you will be able to repay the loan. However, it is important to remember that this is a loan, not a gift, and you should treat it as such.

 

Personal savings

Small businesses can be started with personal savings. This is a common method of funding, especially for businesses with a low start-up cost. The advantage of using personal savings is that you have full control over the business and don’t have to give up any equity. The downside is that you may have to put your personal finances at risk and you may have to work long hours to get the business off the ground.

Bank loan

Another option for funding your small business is to take out a small business loan

Government loans

There are many sources of funding available for small businesses, one of which is government loans. Government loans can be a great option for small businesses because they typically have lower interest rates and longer repayment terms than private loans. Additionally, government loans may be available to businesses that do not qualify for private financing. However, government loans can also be more difficult to obtain than private loans, so it is important to research all funding options before applying for a loan.

Venture capitalists

There are a few different sources of funding available for small businesses, one of which is venture capitalists. Venture capitalists are people who invest money in small businesses with the hope of making a profit. They typically invest in businesses that have high growth potential and are willing to take on more risk than traditional investments. While venture capitalists can be a great source of funding for small businesses, they can also be very demanding and difficult to work with.

Crowdfunding

Crowdfunding is a great way to raise money for your business, as it allows you to tap into a large pool of potential investors. It also allows you to get your business up and running quickly, as you can often raise the money you need in a matter of weeks. There are a number of online platforms that offer crowdfunding services, so be sure to do your research to find the one that best suits your needs.

Grants

One popular source of funding for small businesses is through grants. There are many different types of grants available, from government grants to private foundation grants. Grants can be a great source of funding because you don’t have to repay the money. However, grant money is often very competitive and can be difficult to get.

In your business plan create a table of the funding you have for your start- up and its use.

Good Luck!

 

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