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B plans are a written description of your company's future, a document that tells what you intend to do and how you would do it. If you jot down a paragraph on the back of an envelope describing your company strategy, you've written plans, or at least the germ of plans. Writing good b-plans can’t guarantee success, but it can go a long way toward reducing the odds of failure." Writing b plans can seem a daunting challenge. However, this skill is a vital requirement for any entrepreneur or company seeking to increase their chances of survival. B plans are inherently strategic. You start here, today, with certain resources and abilities. You want to get to a there, a point in the future (usually three to five years out) at which time your company will have a different set of resources and abilities as well as greater profitability and increased assets. Your plans show how you will get from here to there. Creating b plans will help you achieve your entrepreneurial goals. Clear and compelling b plans provides you with a guide for building a successful enterprise focused on achieving your personal and financial goals. It can also help persuade others, including banks, to invest in what you are creating.
B plans go by many names: Strategic plans, operational plans, internal plans, and many others. There are also one-page b plans, although those are really more summaries. Of course there are traditional b plans, which can also be called formal b plans, or wow-do-I-really-have-to-do-all-that b plans. All of these are types of b plans you may need for your business at one time or another. Like so many other things in business, the principle of form follows function applies. Different situations call for different types of b plans. An effective b plans will match its intended use. Knowing these differences will help you plans successfully for the future of your business. Let’s take a look at the types of b plans, and their differences. 1) The lean b plans: All businesses can use lean plans to manage strategy, tactics, dates, deadlines, activities, and cash flow. The lean plans are faster, easier, and more efficient than formal b plans because it doesn’t include summaries, descriptions, and background details that you and your partners or employees already know. On the other hand, it does include specific deadlines and milestones, and the budgets allotted for meeting them, so your team is up to speed. Lean b plans includes four essential elements, all of them functions of general business management: a) Set the strategy. Use simple bullet points to define target market, business offering, underlying business identity, and long-term goals. No additional text is needed. These serve as a reminder for owners and managers. b) Set tactics to execute strategy. Use bullet points again. These include marketing decisions such as pricing, channels, website, social media, promotion, and advertising. Product or service tactics also apply here, including pricing, launch dates, bundles, configuration, new versions, and delivery or packaging. Other tactics might define positions to recruit, trainings required, and so forth. c) Concrete specifics. List of assumptions, milestones, objective measurements of performance, task responsibilities, and what numbers to track. d) Essential numbers--your company’s sales forecast, spending budget, and cash flow. The value of the lean b plans starts with the plans, but that’s just the beginning. Real management is steering your business with a lean plans that you review and revise regularly, tracking progress and performance, and making regular course correction. 2) The standard b plans: The standard b plans is generally shorter these days than ever before; and it’s also as likely to be a document online as a printed document. It’s generally expected to fill the need of b plans event, which is what we call it when a business needs to present b plans to a bank, prospective investor, vendor, ally, partner, or employee. The most standard b plans starts with a summary and includes sections or chapters covering the company, the product or service it sells, the target market, strategy and implementation milestones and goals, management team, and financial forecasting, and analysis. The exact order of topics is not important, but most people expect to see all of these topics covered as part of the standard plans. Lean plans are a good first draft of a standard plans. Start there and add an executive summary, descriptions of company and product, detailed market analysis, and description of the strategy, main tactics, and the management team. Tactics usually appear as marketing plans, product plans, financial plans, and management plans. Build from your working sales forecast and expense budget to complete financial projections. Those complete projections include the three essential financial projections (also called pro-forma statements): profit and loss, balance sheet, and cash flow. Standard b plans needs sales plus these three essentials. The projected cash flow is an essential part of a standard b plans. Businesses need cash to stay open, period. Even if a business can survive temporarily without profits, it still needs the cash to pay its bills. And since profits alone don’t guarantee cash in the bank, projected cash flow is essential. Many standard plans also include a table for personnel spending. Some standard plans will need additional projections to meet the needs of the specific b plans event. For example, plans for seeking outside investment should include a discussion of an eventual exit for investors, and of course the planned use of the invested funds. Plans supporting a bank loan application might include projected ratios the bank wants to see, such as debt to equity, quick, or current ratios. Standard b plans will start with an executive summary describing the key points of your plans, and end with appendices showing monthly projections for the first year and annual projections for the second and third years. Though it is presented at the beginning of the plans, a good tip is to write your executive summary last. This way, you’ve been through the b plans writing process already and you can confidently select the highlights of your plans to showcase on the first page.
3) B plans for a startup: Every startup deserves b plans to break out the steps and requirements with educated guesses for important lists and numbers. The b plans for a startup is sometimes called a startup plans, but some people think all b plans are for startups, and that only startups use b plans. That’s not the case, as planning should be part of business management. The lore of the b plans is changing these days. In most cases, startup plans are lean b plans that typically include the lean plans as shown above, plus projected startup costs, startup steps, and milestones. Startup costs include expenses incurred before launch, such as legal expenses, logo and graphics, websites, signage, and fixing up the office or store; plus assets required, such as starting inventory, vehicles, equipment, office furniture, and--the hardest to estimate and most important--starting money in the bank. While the lean plans with extra startup information is fine for most startups, when a startup requires funding from banks or investors, then its b plans looks more like the standard b plans, including a discussion of exit strategies for investors, and almost always stating the planned use of the funds required. You can use these startup plans to discuss your options with potential partners and associates. This kind of no-frills plans is good for deciding whether or not to proceed with an idea, to help gauge whether this is a business worth pursuing. If you do decide to go into business, over time you can always go back to your b plans and make necessary edits and additions. As your business grows, you can flesh sections out and add details. When the startup plans will be read by outsiders, it’s common courtesy to add an executive summary, a company overview, management team, and descriptions of market, marketing plans, and product plans. Even if you don’t have the exact numbers yet, it’s always a smart idea to include a preliminary analysis of costs, pricing, and probable expenses.
4) One-page b plans: Some people refer to what they call one-page b plans. This is a one-page summary that includes highlights only, used to offer a very quick overview of a business. It is possible to summarize target market, business offering, main milestones, and essential sales forecast in a single page. Such a summary can be useful as a summary for banks, potential investors, vendors, allies, and employees. One-page b plans can also be called a business pitch. 5) Feasibility plans: Some experts use the phrase “feasibility plans” to mean the same thing as a startup plans. Others use it to refer to specific steps taken to validate a technology, product, or market. For example, the feasibility plans for a new kind of brick kiln might include the steps to establish a working version in a laboratory, then a small prototype in the field, and then a first working product. A feasibility plans for a product solution for a new market might involve getting early users and validating the idea with people willing to pay money for it. In some cases feasibility plans involves getting a product or service posted onto a site like Kickstarter or its competitors, offering the product in advance of availability to people willing to commit to buying it later. Feasibility plans rarely include the full range of topics one would expect in standard b plans or even lean b plans. They tend to be focused on whether or not a product will work or a market exists, without the additional strategy, tactics, and financial projections. However, the term is used differently by different people, so if you hear this term from someone or plans to use it yourself, it’s best to get clarification. 6) Internal plans: Internal plans are for the most part another name for what we call a lean b plans. Like the lean plans, they will reflect the needs of the members of your company. Since the purpose of internal plans is specific to the people directly involved with the company, it will most likely be shorter and more concise than a fully detailed standard plans that you’d take to the bank. Internal plans are not intended for banks, outside investors, or other third parties. 7) Operations plans or annual plans: These tend to be a lot like lean b plans with another name. Like the lean plans, operations plans include specific implementation milestones, project deadlines, and responsibilities of team members and managers. These are the plans used for staying on track to meet your goals as a business. Planning for your goals as a business allows your company to assign priorities, focus on results, and track your progress. Your operations plans cover the inner workings of your business. It outlines the specifics of who should be doing what, and when they should be doing it. Of course, cash flow figures prominently here as well. For example, your milestones will need to have sufficient funding for their implementation, and you’ll need to track your progress so you know how much you’re spending.
8) A growth or expansion plans: These could be lean plans or even standard b plans, but focusing on a specific area of a business, or a subset of the business. For example, plans for the creation of a new product are growth plans. These plans could be internal plans or not, depending on whether they are being linked to loan applications or new investment. Expansion plans requiring new outside investment would probably need to include full company descriptions and background on the product, market, and management team, just the same as standard plans for investors would. Loan applications would require this much detail as well. However, internal growth plans used to set up the steps for growth or expansion that is funded internally could skip these descriptions, just like lean plans. It might not be necessary to include detailed financial projections for the company overall, but it should at least include detailed forecasts of sales and expenses for the new venture or product. 9) Strategic plans: The strategic plans are yet another phrase that people use differently, depending on the exact context. Usually strategic plans are internal plans, but without much detail about specifics and financial projections. It generally goes into more detail on strategy and tactics than the lean plans does, so it has more description and explanation. However, strategy is useless without execution, so good strategic plans have to take implementation into account, which means some consideration for resources and time. As you build the strategy for your company and decide how to implement it, you will want to examine your strengths and weaknesses as a business. What does your company do well? As your company grows, you want to play to your strengths. Strategy is often a matter of selecting the right opportunities. Resources should be funneled strategically to the areas where they will provide the biggest overall benefits. Strategy plans are much more likely to be something for the larger enterprise, in which teams of high-level management and sometimes expensive consultants develop broad-brush high-level strategy. In businesses that don’t have thousands of employees, strategy rarely exists in a vacuum, and is almost always developed as part of a b plans, lean or standard. Once you have an idea of your strategy, you must have plans for implementing it. This is where the milestones portion of the plans becomes important. To effectively execute your strategies, it’s critical to assign responsibilities and have a schedule for following through. The implementation tactics you use will actively move you in the right direction toward achieving your goals. And that is essentially the function of b plans.
See the below steps to learn how to approach your b plans. Part 1 of 3: Doing Your Homework: 1) Analyze the potential markets for your company. Consider which segment of the local (and/or international) population will be seeking to use your products or services. This needs to be more than mere guesswork and involves doing accurate and intelligent research. You need to analyze secondary research collected by outside observers, as well as getting primary research that you collect yourself, with your own methods and observations. Consider the following areas of inquiry: Is there a viable market for the product or service you want to sell? How old are your potential customers? What do they do for a living? Is your product or service attractive to a particular ethnic or economic population? Will only wealthy people be able to afford it? Does your ideal customer live in a certain type of neighborhood or area? 2) Establish the size of your potential market. It's important to be as specific as possible in regard to your market and your product. If you want to start a soap company, for example, you may believe that every dirty body needs your product, but you can’t start with the entire world as your initial market. Even if you’ve developed such a universally needed item as soap, you need to identify a smaller, more targeted customer group first, such as children under eight who might like bubblegum scented bubble bath, or soap made for mechanics. From there, you can analyze demographic information more specifically: How many car mechanics are in need of soap in any given community? How many children in the United States are currently under the age of eight? How much soap will they use in a month or a year? How many other soap manufacturers already have a share of the market? How big are your potential competitors? 3) Identify your company’s initial needs. What will you require to get started? Whether you want to buy an existing company with 300 employees or start your own by adding an extra phone line to your home office desk, you need to make a list of the materials you’ll need. Some may be tangible, such as five hundred file folders and a large cabinet in which to store them all. Other requirements may be intangible, such as time to create a product design or to do market research on potential customers. 4) Prepare product samples. If you’re going to build a better mousetrap, you may have constructed a prototype out of used toothpaste tubes and bent paperclips at home, but you’ll need a sturdier, more attractive model to show potential investors. What exactly will your mousetrap look like? What materials will you need? Do you require money for research and development to improve on your original toothpaste tube and paper clip construction? Do you need to hire an engineer to draw up accurate manufacturing designs? Should you patent your invention? Will you need to investigate federal safety standards for mousetraps? 5) Research possible locations for your company. Call a real estate broker and look at actual retail spaces in the neighborhood where you’d like to open your restaurant. Make a chart of the most expensive and least expensive sites by location and square footage. Then estimate how much space you require and how much money you’ll need to allow for rent. 6) Determine your start-up cost. Make a list of all the tangible and intangible resources you need to get your company going. The total estimated price of all of these items will become your start-up cost whether you’re buying highly sophisticated computers or simply installing a new telephone line on your desk. If there’s any item in your estimates that seem unreasonably high, research other alternatives. But keep in mind that it’s better to include every element you truly need along with a reasonable estimate of the cost of each item, so you don’t run out of money or default on your loans. Be honest and conservative in your estimates, but also be optimistic. Don't aim for the best of everything at the beginning. You can forgo the expensive trimmings of an office of a more well-established company and stick to the basics at the beginning. Get what is affordable, works and is actually needed and don't buy frills. 7) Put yourself in the shoes of potential investors. Ask yourself, “If I were going to invest X amount of dollars into a concept or idea, or even a product, what would I want to know?” Gather as much helpful and credible information as you can. Depending on your product, you may need to search long and hard for relevant information. Don't lose heart if you discover some, or even all, of your ideas have been adequately covered by the market. Don't ignore this reality; instead, work with it. Can you still do a better job or provide a better widget than your competitors? In many cases, it's likely that you can provide you know the market well and how to add value in ways your competitors are not doing. In other cases, it may be a case of focusing more narrowly or more broadly than your competitors are doing. 8) Identify potential investors. Banks and other funding sources don’t lend money because people with interesting ideas are nice. Lenders will typically look to the company's Capital, Capacity, Collateral, Conditions, and Character or what is known as the 5C's of lending when underwriting a loan. You'll need to have covered all these bases well before seeking funding.
Part 2 of 3: Structuring Your Company: 1) Define your company. B plans won't be useful until you're certain what your company exists for. What will you accomplish for others? What products and services will you produce or provide? Write down all the specific needs your company will satisfy. Potential investors need to know that your company will be meaningful and marketable to people who can use your product or service. So concentrate on the external needs your company will meet. What will your product or service enable people to do better, more cheaply, more safely, or more efficiently? Will your restaurant make people’s palates delirious with new taste sensations? Will your new mousetrap help people capture mice without feeling sick to their stomachs? Will your new bubblegum scented bubble bath revolutionize the way children agree to take nightly baths? 2) Choose a winning strategy. Once you’ve established the competitive advantage your company offers, you will be able to select the best strategy to reach your goal. How will you distinguish your product or service from others? Although there are millions of types of businesses, there are actually only a few basic strategies that can be applied to make any enterprise successful. The first step in selecting an effective strategy is to identify a competitive advantage for your product or service. Your competitive advantage may include designing special features not found in rival products. It may entail superior service characteristics such as speedier delivery, a lower price, or more attentive sales people--these are never to be sniffed at as possible winning ways, as many companies grow complacent and can be overtaken by giving customers experiences that are better than the average expectations. Even where your product or service is already well established, perhaps you’re establishing an image or brand of exceptional quality or reputation. 3) Design your company. Consider how will you hire and organize your workforce. By the time you’ve reached this stage of thinking about your potential concept, you’ll probably have a good idea of the number of people you’ll need and the skills they’ll require to get your enterprise up and running. Keep in mind that your initial plans will undoubtedly change as your company grows. You may need to hire more managers to supervise your expanding staff or to set up new departments to meet new customer demands. Projected growth and expansion for your company should be mentioned in your b plans, but it’s not the primary focus. For now, you want to secure help in getting started and convince your funding sources that you will become profitable. 4) Consider the practical issues of running a company. Think about your role as leader or boss of the company. As you think about hiring personnel and organizing your workforce, you must also confront your desire and ability to be a good boss. Decide how you will handle your employees' entitlements. For example, salaries and wages, their insurance and retirement benefits, as well as analyzing the extent of your knowledge of tax related issues. Investors will want to know if you’re capable of running the company. Do you need to bring in experienced managers right away? Will you keep some of the existing employees or hire all new people? And where do you find these potential employees? Funding sources will also want to know if any of your partners expect to work alongside you or if their obligations are only financial. Your plans will need to specify the key management jobs and roles. Positions such as president, vice presidents, chief financial officer, and managers of departments will need to be defined along with stating who reports to whom. 5) Decide on marketing plans. One of the most common flaws in plans is the entrepreneur’s failure to describe exactly how customers will be reached and how products will be presented to them. Potential investors, staff, and partners won’t be convinced that your idea can succeed until you’ve established well-researched and effective methods of contacting your customers––and the assurance that once you’ve reached them, you can convince them to buy your product or service. Consider how you will reach your customers. What will you say to persuade and convince customers that your product or service is better value, timelier, more useful, etc. to the consumer than the rival product or service? If it currently has no rival, how will you properly explain the purpose of and the consumer's need for the product? What advertising and promotional efforts will you employ? For example, two for the price of one specials or free coupons inside those same kid-oriented cereal boxes? Where can you locate lists of the greatest concentrations of children under the age of eight or whatever group constitutes your market? 6) Build a dynamic sales effort. The word “sales” covers all the issues related to making contact with your actual customers once you’ve established how to reach them through your marketing campaign. In a nutshell, this part of your b plans is about how you will attract customers or clients for your product or services. What will your basic sales philosophy be? Building long-term relationships with a few major clients or developing a clientele of many short-term customers?
Part 3 of 3: Writing the B plans: 1) Organize all the relevant information about your company. Begin creating section headings and putting the appropriate information under the appropriate headings. Effectively separating your company' unique approach to each of these headings will organize your plans in a way investors find useful: Title Page and Table of Contents, Executive Summary, in which you summarize your vision for the company, General Company Description, in which you provide an overview of your company and the service it provides to its market, Products and Services, in which you describe, in detail, your unique product or service, Marketing Plans, in which you describe how you'll bring your product to its consumers, Operational Plans, in which you describe how the company will be operated on a day-to-day basis, Management and Organization, in which you describe the structure of your organization and the philosophy that governs it, Financial Plans, in which you illustrate your working model for finances and your need from investors. 2) Write the executive summary last. The executive summary is basically your big appeal to investors, or really anyone who reads your b plans, that should summarize and articulate what it is that's great about your model and product. It should be less about the nitty-gritty details of operations and more about your grand vision for the company and where it is headed. 3) Gather all the information together and prepare multiple drafts. You've done all of the hard work researching, deciding what your company is about, targeting it accurately and selling it. It's time to put the b plans together and articulate all your thinking, research, and hard work into a comprehensive description of your structure and service. At first, do not worry about capitalization, punctuation, and grammar. All you need to worry about is putting your ideas down on paper. Once you have a general form, you can spend time proofreading your plans and correcting mistakes. Have someone else read over it for you and take heed of their comments. 4) Sell yourself and your company. The idea of the b plans is to present yourself in the best light. The talents, experience and enthusiasm you bring to your enterprise are unique. They provide some of the most compelling reasons for others to finance your concept. Keep in mind that investors invest in people more than ideas. Even if your potential company has many competitors or is not on the cutting edge of an industry, the qualifications and commitment you demonstrate in your plans can convince others to proffer their support. Your resume will be included in the separate appendix of exhibits at the end of the plans, so this is not the place to list every job you’ve ever had or the fact that you were an art history major in college. But don’t overlook the impact of some part of your background that might even seem unrelated to your new venture. Focus on group experiences, leadership opportunities, and successes at all levels. 5) Present and explain your financial data. How will you convince others to invest in your endeavor? By having clear, transparent and realistic financial information that shows you know what you're talking about and that you're not hiding anything. The accuracy of your financial figures and projections is absolutely critical in convincing investors, loan sources, and partners that your concept is worthy of support. The data must also be scrupulously honest and extremely clear.
The above given guidelines are only for your understanding and these b-plans would vary from one project to another. Do note that even with these instructive steps it is not possible for most people to write good b-plans like how our expert writers do. This is here where you need the help of our writing services company. So why wait? Read below for more details.
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