February 7, 2014
A Business Plan is the backbone of any successful business. No matter how unique your idea is, it has to be commercially viable. To test this reality you need a plan. Generally a business plan comprises of an Executive Summary, a Business Description, a Competitive analysis, Market Strategies, a Design & Development Plan, as well as an Operation & management Plan addressing all financial factors.
Financial factors are the cornerstone of a Business Plan. The success of a business is greatly determined by the accuracy of the financial plan that governs the business and how well it is followed.
There are different types of financial plans for different purposes. For example, in order to raise money from potential lenders/investors you should know exactly how much capital is required and how it will be utilized. In addition, a repayment schedule should be prepared. If the plan is to request a bank loan, the interest amount should be calculated and all the covenants should be tested within the plan.
You should be prepared for the worst. The financial plan should reflect income way below the projection. You should be aware of all options and be prepared for any unforeseen circumstances.
Last but not least, Sensitivity analysis of a model is required for any financial plan. To reduce the risk and uncertainty of your plan, you should test the model with different combinations of variables.
If you are planning to expand your business to different countries the plan should be specific to each country. BizBoon’s customized service option will help you achieve your dream project in different countries. BizBoon’s certified partners will help you customize your plan according to your needs. Join BizBoon today and succeed with a great business plan.
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