Research & Information Collection
Once you have made the decision of the type of funding your business requires it is time for the research. Business plan research covers several key areas:
Insight from your experience working and observing the industry you will enter. Published information from library, Internet, and paid database services will provide information on the market growth, overall industry perspective, and customer profiles. Field research covers interviews with customers, suppliers, competitors, and industry experts. This provides the real insight behind all the published facts.
Collection Files
The easiest way to go about collecting all your experiences, interviews, your resume, and research, is to create files for each section of the business plan. These files can be: paper-based, computer files or set-up using business planning software. As you start the research and collection phase of planning, fill your files with notes and printouts.
General Industry Overview
Begin the research process with an overview of the industry; uncovering industry and association reports. By having a general understanding of the industry, you will avoid embarrassment in contacting experts with basic questions. Begin the field research once you have a good grasp of the industry fundamentals and need answers to the hard-to-find information.
Analysis
Once the bulk of the data has been collected, the process of analysis begins. Build a competitive profile to include, contingency plan, and risk assessment. Don’t forget to include your resume.
Financials
Start the financials when you have found some average industry ratios for your business. Work closely with your accountant to develop realistic projections. Being overly optimistic will raise eyebrows with your investors or banker.
Executive Summary
Save this for last. When you have thoroughly completed all sections of the business plan, write the summary. Highlight the key points and include the return on investment or business loan payback requirements.
Review & Editing
Remember, you only have one shot at making a good impression. A well-written business plan that opens doors and wins the money is a plan that has been revised and reviewed.
