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Structure and management

Thu, 10 Dec 2009 14:50:37 +0000

The section on structure and management will inform the reviewer about the people who will be involved with making the project a success and the type of organization you believe is best suited to achieve the goals and objectives. As long as businesses are run by humans, the personal relationships that evolve between the manager / owners and their customers, investors, and participants can become the most binding and commercially rewarding. The background included in this section of your plan will assure the reviewer that you have structured the venture reasonably and advantageously, and that anyone involved with the organization is qualified and committed to the enterprise new or expanding.

The operation plan describes the business as an entity and presents the all important financial. To an investor this section has the nuts and the bolts for you will have revealed the future as see it a given confidence that the venture justifies support and possible equity or loan investment. The realism of costs and revenues is seen in this section: the Return on Investment will be the highlight to a prospective participant. Also the requirement for growth or operating funding will be noted in the cash flow portions of the financial forecasts. The milestone in the financial will become your measurement base of success they are the confidence base for the participant.

Included in this chapter are sample business plan that are intended to give you a guide to presentation style and the data required for a typical start up venture project. No two plans will ever be the same but ideas and approaches can always be obtained by studying the presentations of others even thought your own product and business strategies can certainly differ. Before examining the sample plan, let’s review and emphasize some of the format and presentations aspects.

Operation plan

Mon, 30 Nov 2009 14:55:17 +0000

Since this section includes the financials, it is as important as the executive summary. In fact, the reader could well move from the executive summary directly to the operation plan in order to absorb the financial data and then decide if more information about the product and management is worth studying. Although the numbers tend to speak for themselves, text description will aid or support the concepts and the clarity points requiring particular notice capital expenditure will be needed for a machine in six months, exhibition costs arise twice annually, a large contract is expected during the year, etc. where regular revenues appear variations due to seasonal demand may be noted as some businesses have major income when specific event occur. Such points are important to note in the text accompanying the section for numbers say a great deal, but they may not explain some pertinent matters. The reader won’t know as much about the detail as you will help with explanatory information.

The suggested layout for financials was discussed in chapter 9 and the reasons for simplicity were presented. It is quite possible that your venture will need more cost row entries than shown in the examples contained in the presentations that are up to you for individual projects deserve individual format entries and you will have to decide how comprehensive your cost and revenue breakdown should be. When you appreciate in the financials, the simplest format may not be the most practical –the extra rows in the suggested layouts allow for additional cost entries.

This section will be further discussed in chapter 12 and 13 for it is one of the two most important elements in your business plan. And as the financial portions relate to your involvement and commitment it must be the most important section for you personally.

Your business plan

Thu, 19 Nov 2009 14:51:38 +0000

When you consider that a large corporation Annual Report to Shareholders may cost several dollars each, it is obvious that the reader is held in great esteem. The same principle should apply to your plan for it is intended to achieve interest, favorable response and support from a reader –it’s worth the cost and effort to make it First Class. After all first appearances make for impressions.

So far a great deal of consideration has been given to the background of business operations and an effort to assess the depth of your resolve to established and run an enterprise. The format and fundamentals are necessary to crate a business plan have been discuss in general with the promise that concentration on writing your plan would takes place later. Now, that time has arrived.

You will have grasped the importance and the financial as well as the executive summary. The numbers provide the guidance you will need as a manager and they will secure the confidence that you are really doing the right thing. The summary is a quality snapshot of your venture that will enable the receiver to quickly comprehend what you intend to accomplish and how the appropriate parties may participate. These two sections in your plan are the most important; both for you as the primary benefactor in writing your plan and the reviewer who will be asked to evaluate it for the purposes you will be explaining.

The information contained in your product profile will reveal the nature of your product and the reasons that make you feel confident about the future of your venture. Particularly why your enterprise will succeed against any competition and why you believe that your product has the uniqueness or appeal that will attract customer to pay their good money for it.