Whether you are planning to start a brand-new business, expand an existing company, or get financing for a business venture, you will need to write a business plan. A business plan not only lends your business a sense of credibility, but also helps you to cover all your bases, increasing your chances of success.
Although writing a business plan can be a lengthy, intimidating project, it is not necessarily difficult. Here is an overview of how to write a successful business plan.
What to Include in Your Business Plan
Your business plan needs to demonstrate that you have thoroughly considered all aspects of running your business. To that end, the standard business plan has nine major sections, covering everything from your business’s mission statement to a detailed financial analysis.
Executive Summary
The first – and most important – section of your business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees – even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched and written the other sections.
One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan: Those four sentences are responsible for not only defining your business, but also capturing the interest of your reader.
The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals.
This section is a candidate for a bulleted format, which allows you to list main points in a manner that is easy to scan. Avoid using too much detail – remember, this section is a summary. A page or two is usually sufficient for an executive summary.
Market Analysis
The next section of your business plan focuses on market analysis. In order to show that your business has a reasonable chance for success, you will need to thoroughly research the industry and the market you intend to sell to. No bank or investor is going to back a doomed venture, so this section is sure to fall under especially close scrutiny if you are looking for financing.
Your market analysis should describe your industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market – that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as:
• Distinguishing characteristics
• The needs your company or product line will meet
• What media and/or marketing methods you’ll use to reach them
• What percentage of your target market you expect to be able to wrest away from your competitors
In addition, your market analysis should include the results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors.
Company Description
After your market analysis, your business plan will need to include a description of your company. This section should describe:
• The nature of your business
• The needs of the market
• How your business will meet these needs
• Your target market, including specific individuals and/or organizations
• The factors that set you apart from your competition and make you likely to succeed
Although some of these things overlap with the previous section, they are still necessary parts of your company description. Each section of your business plan should have the ability to stand on its own if need be. In other words, the company description should thoroughly describe your company, even if certain aspects are covered in other sections.
Organization and Management
Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section should include:
• The division of labor – how company processes are divided among the staff
• The management hierarchy
• Profiles of the company’s owner(s), management personnel, and the Board of Directors
• Employee incentives, such as salary, benefits packages, and bonuses
This goal of this section is to demonstrate not only good organization within the company, but also the ability to create loyalty in your employees. Long-term employees minimize human resource costs and increase a business’s chances for success, so banks and investors will want to see that you have an effective system in place for maintaining your staff.
Marketing and Sales Management
The purpose of the marketing and sales section of your business plan is to outline your strategies for marketing your products or services. This section also plans for company growth by describing how the growth could take place.
The section should describe your company’s:
• Marketing methods
• Distributions methods
• Type of sales force
• Sales activities
• Growth strategies
Product or Services
Following the marketing section of your business plan, you will need a section focusing on the product or services your business offers. This is more than a simple description of your product or services, though. You will also need to include:
• The specific benefits your product or service offers customers
• The specific needs of the market, and how your product will meet them
• The advantages your product has over your competitors
• Any copyright, trade secret, or patent information pertaining to your product
• Where any new products or services are in the research and development process
• Current industry research that you could use in the development of products and services
Funding Request
Only once you have described your business from head to toe are you ready to detail your funding needs. This section should include everything a bank or investor needs in order to understand what type of funding you want:
• How much money you need now
• How much money you think you will need over the next five years
• How the money you borrow will be used
• How long you will need funding
• What type of funding you want (i.e. loans, investors, etc.)
• Any other terms you want the funding arrangement to include
Financials
The financials section in your business plan supports your request for outside funding. This section provides an analysis of your company’s prospective financial success. The section also details your company’s financial track record for the past three to five years, unless you are seeking financing for a startup business.
The financials section should include:
• Company income statements for prior years
• Balance sheets for prior years
• Cash flow statements for prior years
• Forecasted company income statements
• Forecasted balance sheets
• Forecasted cash flow statements
• Projections for the next five years – every month or quarter for the first year, with longer intervals for the remaining years
• Collateral you can use to secure a loan
The financials section is a great place to include visuals such as graphs, particularly if you predict a positive trend in your projected financials. A graph allows the reader to quickly take in this information, and may do a better job of encouraging a bank or investor to finance your business. However, be sure that the amount of financing you are requesting is in keeping with your projected financials – no matter how impressive your projections are, if you are asking for more money than is warranted, no bank or investor will give it to you.
Appendices
The appendix is the final section in your business plan. Essentially, this is where you put all of the information that doesn’t fit in the other eight sections, but that someone – particularly a bank or investor – might need to see.
For instance, the market analysis section of your business plan may list the results of market studies you have done as part of your market research. Rather than listing the details of the studies in that section, where they will appear cumbersome and detract from the flow of your business plan, you can provide this information in an appendix.
Other information that should be relegated to an appendix includes:
• Credit histories for both you and your business
• Letters of reference
• References that have bearing on your company and your product or service, such as magazines or books on the topic
• Company licenses and patents
• Copies of contracts, leases, and other legal documents
• Resumes of your top managers
• Names of business consultants, such as your accountant and attorney
Writing a Successful Business Plan
Despite the quantity of information contained in your business plan, it should be laid out in a format that is easy to read. Just like with any piece of business writing, it is important to craft your business plan with your intended audience in mind – and the bankers, investors, and other busy professionals who will read your business plan almost certainly won’t have time to read a tedious document with long-winded paragraphs and large blocks of text.
Business plans for startup companies and company expansions are typically between twenty to forty pages long, but formatting actually accounts for a lot of this length. A strong business plan uses bullet points throughout to break up long sections and highlight its main points. Visuals such as tables and charts are also used to quickly relay specific information, such as trends in sales and other financial information. These techniques ensure that the reader can skim the business plan quickly and efficiently.
Think of your audience as only having fifteen minutes to spend on each business plan that comes across their desks. In that fifteen minutes, you not only have to relay your most important points, but also convince the reader that your business venture merits a financial investment. Your best bet is a well-researched business plan, with an organized, easy-to-read format and clear, confident prose.
Last year alone, millions of people made a profit on e-bay. Some were just selling odds and ends, while some ran huge businesses exclusively on e-bay. The amount of commerce done on the internet is only expected to increase, making prospects for e-bay users bright. You very well may be one of the people who's discovered the great benefits of making money from e-bay auctions. I myself have been an e-bay user for a little over a year and have had great success with my auctions.
When my friend began her business on e-bay selling high end purses, it started out quite rocky. Her auctions weren't getting the hits she wanted and usually sold off of one bid, instead of creating the bidding frenzy that beautiful bags like she had should have!
So, she called me up knowing I had been successfully using e-bay for almost a year at the time. She gave me her login information (we're best friends- she trusts me!) and asked me to check her her sales and current auctions and see if I noticed where the problem was. When I saw her current auctions, alot became obvious!
So, I compiled a list of things that I had used which had made me successful which I suggested she implement into her own auctions. I even revised the auctions she had active at the time. One of those auctions- a gorgeous brown Coach purse- sold for $546.00. She had listed it for $125.00. It was her biggest sale yet and she was thrilled.
The funny thing is, the methods I use are not some internet guru secrets. They are just things I picked up during my time using e-bay, but seem to be overlooked alot of the time. Here are what I have found to be the top 7 overlooked tips for successful e-bay auctions:
1. The Importance of a Good Title- When you're creating a title for your auction, you've gotta think like a buyer. When I checked my friend's listings, she had a beautiful, brand new brown patchwork Coach purse titled as 'coach purse'. This is way too general! A buyer knows what they want; in your title, include color, any brand name, main keywords that people will search, and condition is possible. I changed her title to "Brown & Beige Patchwork Coach Purse-Brand New". By the next day, it had over 100 new hits. Previously her auctions were hardly even reaching 100 hits throughout the whole 5 days.
Another mistake people often make is writing things like 'The best wristwatch ever!!!!" Even if you do believe you're selling the best wristwatch ever, is this really what a buyer is searching for? Of course not. Use a more descriptive, detailed title like 'Gold Armani Wrist Watch w/ Leather Band-New".
One more thing when it comes to titles: make sure keywords are included. For example, whatever the item you're selling actually IS, include that in the title. On e-bay, I mostly sell high end women's heels. I always make sure to include in my title 'Womens Shoes" because this is a common keyword. An example of a title I would use is:
"Brown Marc Jacobs Womens Silver Stud Pumps Shoes"- I know that 'pumps shoes' sounds awkward, but many women will search for "marc jacobs womens shoes", and I want to be sure my item shows up in the results. Use these tips when creating your title and you'll be sure to see increased traffic to your auction.
2. Give honest descriptions- Sure, that stain, tear, or other defect may be sooo small that it's almost impossible to notice. Still, mention it in your auction. If you send an item out and a buyer realizes that the item has a defect that you didn't mention in the auction description, they will be disappointed and very possibly leave you negative feedback. Anyone familiar with e-bay knows that feedback is everything. It is what makes people feel comfortable buying from you and proves that you are a trustworthy, reliable buyer.
It's best to provide a photo of any defects so potential buyers can see what they're getting. And believe me, if you say that there's a defect but don't show a picture, people will e-mail you asking for some. I have sometimes had a defect so tiny on a shoe that I couldn't even get it to show up in a picture. If that's the case, say it! Provide a picture of the area where the defect is and also explain in your listing that it's so miniscule that you can't get it to show up in the picture. Buyers will trust you much more and be way more willing to buy from you in the future. You also won't have to deal with an unsatisfied customer who can damage your feedback rating and make future potential buyers hesitant or even completely dissaude them from buying from you.
3. Offer International Shipping- So often I see sellers who are providing great products but don't offer international shipping. Let me tell you- about 30% of my sales are to international buyers, and very often international buyers will pay more for products. I never understood why people are restraining their own sales potential by not offering international shipping.
Remember, the buyer is the one who pays the shipping, not you!! Even though international shipping is expensive, you are not paying it! And don't be discouraged thinking sending things internationally is difficult- it's super simple and not much different then sending things within the country. If you use USPS (the method I find most efficient for prices and service), you may have to fill out a short customs sheet that takes no more than a minute. Don't be lazy! Offer international shipping and see your sales soar!
4. Send a Thank You card with your purchase- You can get packs of black decorative cards from any general store, WalMart, or even discount chains like TJ Maxx. Buy a couple packs and with people's packages, send a nice thank you card.
You don't have to write a dialog, just a simple "Name of Buyer, Thanks so much for your bid! Enjoy your purchase, and I hope to do business with you in the future! Your Name or Business Name" If you want to really go all out and rake in some super feedback, include a small free gift. When I sell a pair of shoes I usually include a free headband or pair of earrings. If you'd like to try this out, try to find something that compliments whatever it is that you're selling. You could also include a little bag of candy or some tea light candles (go to the dollar store for great knick knacks and free gift ideas). Use your imagination to make your customers satisfied and loyal!
5. Offer combined shipping Buyers love combined shipping. If you offer a good combined shipping deal, and have more than one item they're interested in, they're ten times more likely to buy both items. Some people choose to determine combined shipping depending upon the two items the buyer is interested in, while others have set shipping rules. A good example is to charge $_.__ for the first item and offer to send the second item free, or for $1.00-$2.00 more. Usually the additional weight of the package isn't much so it's possible to offer combined shipping without losing any profit at all. Determine your own rates depending on the weight of the items you sell and the shipping service you use.
6.Keep communication with Buyers open and offer more pictures upon request. Of course in your listing you must include good pictures to attract buyers. Most people include 2-4 pictures per listing, depending on the size of the items and any special details you've got to show. I always include at least 3 pictures, and more if I feel the item needs more pictures of some detail it has that is unique.
Even though you have already provided your buyers with good pictures, it's helpful to write in your listing "Contact me with any questions or for more pictures. (with your contact info)" This is another method that makes buyers instantly trust you more and feel more comfortable placing bids. They feel that the communication lines are open and that they can get more info on the item if needed. And don't be discouraged thinking that you'll spend the whole day responding to e-mails requesting more photos; If you've already included good pictures, most people won't bother asking for more. Of over 50 listings where I've written this, only one person ever asked me for additional pictures. Check your e-mail though at least once a day to see if you've got any questions, people love quick responses and will reward you with good feedback for your effective communication.
7. Always use Delivery Confirmation- This is a biggie! Make sure that when you post your shipping costs, delivery confirmation costs are included so buyers aren't questioning the extrra expense when they receive their invoice. Delivery confirmation is a cheap effective way to ensure both your own and the buyer's investment.
First of all, you do not want to get scammed. What? Scammed? Yes, it happens. I know that most of the scamming referred to on e-bay is about sellers who scam their buyers, but don't be naive; we sellers are also at risk. Although the majority of the e-bay community is good people who are just trying to conduct legitimate transactions, there are those rotten apples which make it hard for all of us.
The usefulness of delivery confirmation was brought to my attention my an acquaintence of mine who does some selling on e-bay. He sold some very high quality digital remote for around $250.00. He shipped the item using delivery confirmation, and after about a week told me he received an e-mail from the buyer saing she'd never received the product. She filed a whole complaint with e-bay and made a big fuss about it. GOOD THING he had the delivery confirmation number and was able to prove that the product had been shipped to her address. Don't let one of these scammers get a chance to cheat you out of your money.
Making delivery confirmation a requirement is also something that will make serious bidders trust you more and see that you're a legitimate business person who wants to secure shipment. Think about it; if someone requests NOT to use delivery confirmation, you can guess where their intentions are. The extra .75 is not breaking anyone's piggy bank, so don't feel bad about it.
There you have it! Use these highly useful yet highly overlooked tips to generate more traffic to your auctions and enjoy higher sale prices. To e-bay success!
Check out http://www.freelancemommystudio.com for more e-bay and work at home tips and programs!
An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.
While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.
The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.
Here are best practices that will help you to successfully navigate your business through an economic downturn:
Goals:
The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.
Objectives:
• Conserve cash.
• Protect assets.
• Reduce costs.
• Improve efficiencies.
• Grow customer base.
Required Action:
• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.
• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.
• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and ad visors). Communicate honestly and consistently. Effective two-way communication is the key.
• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.
Recommended Best Practice Activities:
The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.
1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.
2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to re size your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.
3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.
4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.
5. Re-negotiate with your suppliers, lenders, and landlord:
i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.
ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful re-negotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.
iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.
6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.
7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.
8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.
9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.
10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.
Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.
Copyright © 2008 Terry H. Hill
http://www.legacyai.com
With so many people and company’s offering search engine optimization (SEO) services, it’s not so much about who can you trust as much as what do they provide and what experience do they have doing SEO
Type in your favoirte keyword phrase into you favorite search engine (OK, use Google) to get a listing of SEO providers. Now look at the search engine reults page (SERP) and start going through the list and see what each one provides as services and what vertical (industry) they specialize in or industry do they work with. Put it all in a spreadsheet. After you have done 30 you will see quite a variety.
You’ll have to overlook all of the claims about certification and the like because as of the moment there is no bonafide or unified SEO certification in the industry. In fact there are no real industry standards as to what defines an SEO specialist.
Our companys’ definition of what SEO Specialists do is this in a nutshell: using known best practices and all information available fron the search engines themselves, the SEO Specialist enables and empowers your website page(s) to rank as high as possible in organic search results as determined by individual search engine indexing criteria.
That’s pretty straight forward. There are no promises and no guarantee’s about where or when you will rank. If someone promises you they can rank you #1 or any position, walk away and don’t look back. Forget their justification or reasoning, just walk away. And the same applies to anyone who tells you they know exactly what the search engine algorithms are looking for and they will get you ranked at or toward the top. These algorithms are Google, Yahoo! and MSNs bread and butter and are pretty much a trade secret and as highly guarded as you might imagine.
The other thing to be wary of is the list that someone provides you of a websites. Can you really look at a website and tell who applied the SEO Strategy? Even calling the website owner or the company doesn’t always get you verification. We have clients that we sign non-disclosure agreements with because they don’t want others know who did their SEO for fear of having the competition contacting the same SEO firm and offering a bonus to rank their company’s website even higher.
Of course since you know there are no guarantee’s - the pay out is ONLY when the website achieves superior ranking. Can you imagine how the SEO Specialists would accomplish that feat!? Several ways, but none of them are too above board.
So, when you begin to look for the company who will perform your SEO, choose wisely and ask questions. Contracts and proposals are a good measure of security for both you and the SEO firm.
Nothing But SEO