11-24-02

Business Plans

by Brian Moore, CGA

A business plan is a written summary of what your business will be or is currently, where you intend to take it, and how you plan to get there. Developing a business plan is a process you follow to ensure that your business and/or financing requirements are thoroughly researched and thought out.

If you need to finance your business, most lenders will want to see a business plan. Lenders may include Chartered Banks, Trust Companies, Credit Unions, the Business Development Bank of Canada, your local Small Business Development Corporation, Leasing companies, Venture capital or private lenders.

The Key components of a business plan include: an Executive Summary; Business, Product and Market descriptions; information on your marketing strategy; information on your operations; and of course, financial information.

Specifically, your business description should include information on who you are, the businesses history, goals and any other useful background information. Information on your product or service would normally include what you will offer, how it is produced, priced and your estimated cost of production.

The Marketing section of your business plan would normally include a description of who your customers are and an evaluation of your competition. This evaluation would include information such as years in business, estimates of market share, and an analysis of strengths and weaknesses. The marketing strategy section would include an outline of how you plan to sell your product or service. Methods of selling could include advertising campaigns, personal selling or participation in trade shows.

Information on operations, both existing and projected, is valuable to the reader. This will provide personnel details which will indicate the size of your operation. List your professional advisors, which the reader may wish to contact, your suppliers and government regulations you must adhere too. This would also be a good place to discuss where you do business and why this is a good location.

My next article will continue the discussion of the business plan with the financial section and wrap up.

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