Starting a business is an exciting time, but it is paramount that you begin the process on the right foot. One of the most important steps when creating a business is formulating your business plan. A good business plan will help you show lenders and investors that your business is worthwhile; it will also provide a roadmap for you to follow during times of stress.
There are different varieties of business plans: some more traditional and others more streamlined in nature. What you require here depends on the aims of your business. According to FindLaw, two key elements in a strong business plan are market analysis and your financial projections.
The market analysis
This part of your business plan explains to the reader where your proposed business fits into the market. Essentially, it explains what your business does and does not do, and how this will fill a need in the current market that does not presently exist.
There are several ways to get this information. You can do cursory research on your own using the internet, but taking advantage of focus groups and surveys can offer more pointed data about your vertical.
The financial projections
This shows any budget documents (balance sheets, cash flow history) over the past five years. It also involves forward-projecting financial information for the next five years. A detailed breakdown here will help you explain your funding requests.
The foundations of any solid business rest on research and planning. Creating a solid business plan can help ensure that your company passes the two-year mark and beyond.
