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What your business plan must include
You’ve got your business idea, got the time to start the new business and your entrepreneur spirit is fired up but you need money and are off to the bank or a friendly angel investor with your business plan. Wait before you do, make sure that you have included this information.
Business Models and Strategies: Ensure that your business is well structured and follows a recognized business model. Ensure that your business strategy for the next 3-5 years are well defined. This gives a potential investor confidence in your business ability and structure.
Market Research: You must fully demonstrate that you have a detailed understanding of the market you will be selling to. How big it is, what the trends are and the people who will want to buy from you.
Product Information: Define what your product range will consist of. Your price points and how you intend to develop the products. You should pay particular attention to your differentiators.
Legal Information: This includes contracts, agreements, licenses, trademarks, copyrights, company details and any large sales that you have.
Financial Information: Financial statements and 5 year projections. Any past tax returns and accounts. Details of any loans, debts and outstanding debtors. Prove to your potential investors what you have done, play to do. Overall your financials should prove your company is financially secure, prudent and realistic in its goals.
Management Information: Provide names and resumes of all your key staff. This is to demonstrate the strength of your management team.
Differentiation: Prove how you will be different from all your competitors. Look at niches, superior service, better packaging, unusual products or services etc. Show your competitive advantage and how you will adjust to meet market changes.
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