Useful advice on writing business plan
Tuesday, 01 November 2011 04:54

Useful advice on writing business plan

Try to follow these tips to become a more successful fundraiser and you will feel the difference!

Be an expert in your industry

When making an analysis for your business plan spend sufficient amount of time on researching the business industry you’re in, even if the industry is already familiar to you. Read articles, industry reports, study your competitors. All this information will allow you to provide a more competent analysis of the industry in a business plan and will prove your competence to experts. In addition, if you work in two industries at the same time, study both of them. For example, a bouquet maker competes within the floral industry in a sense, and is also part of the large gift industry.

Estimate cost of goods sold

If you find out that an industry average cost of goods sold for your type of business is 50% of revenues, think twice before simply writing in your plan that your business "will have a 40% cost of goods sold because of additional efficiencies". Generally, efficiencies are created over time through learning and also because of a company's growth and additional scale. Startups are not generally more efficient than incumbent competitors. Explain your competitive advantages and prove that by certain calculations and descriptions, as in that case your presentation will be more weighty.

Summarize your results

Show the growth of business you expect over the next five years in your financial plan. It would be better if you will prove your opinion by more than just sales and net profit projections. Include metrics such as the number of customers or clients, the number of employees, the number of products sold or services rendered, or other statistics relevant to your type of business. These type of non-financial metrics will give readers a better understanding of what impacts your business as it grows.
Last modified on Tuesday, 01 November 2011 04:58

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