Business Plan Information: Everything You Need to Know
Business plan information must always tell an interesting story as the purpose of a business plan is to secure financing for a new company.3 min read
Business plan information must always tell an interesting story. This is because the purpose of a business plan is to secure financing for a new company. The audience consists of potential investors that must be convinced to invest in your business. The goal of a business plan is to show that your company has the potential to make a lot of money. A well-written business plan relays information in numerous ways and can be comprised of a variety of different orders. However, it must convey a clear understanding of the proposed market opportunity, explain your individual business model, and describe how money can be made from investing in your company.
Gathering Information for Your Business Plan
When writing a business plan, it is important to gather data to try to accurately project employee costs, business needs, and company sales. Understanding how to research and compile all the necessary information will assist you in this task. Although the internet has made gathering information much easier, most of the data you will encounter will relate to competitors within your business industry. Some of the most beneficial information needed to develop a successful business plan will be found close to home, with business owners in your community who have a comparable business model.
There are several steps to take when gathering information from competitors for a business plan:
- Examine similar, existing businesses to gain insight of current operations. Take note of business activities by assessing such things as:
- The number of patrons that go inside the business.
- The number of purchases that were made.
- Store prices.
- How long each customer stays inside the business.
- Look for a similar company in another location. Find a similar store in a destination outside your community. Contact the owner, truthfully explain your intentions, and ask thoughtful questions about their business.
- Research if a similar business is for sale in your community. Contact a broker and ask for as much information as possible. This may provide you with insider financial information that could benefit you when writing your business plan. For example, if you're considering opening a sporting goods store and you discover one is for sale, purchasing an established store may be a good opportunity.
- Even if you do not want to purchase this particular store, the information you may gain could be very valuable.
- Ask questions to gain insightful knowledge, such as:
- Why is the owner selling the company?
- Are there currently any problems within the company?