Strategy Business Plan Preparation Qualified

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					Strategy Business Plan Preparation Qualified

A business plan is like a road map for entrepreneurs towards building successful and profitable
business. Every entrepreneur who has opened a business or to launch a business, need a
business plan that is made well and based on the facts to enhance the chances of success of
the business.


Over the decades, research has shown that companies that conduct business plan will beat a
company that does not do it. According to various penelitihan also shows that many small firms
are less rigorous in their approach in preparing and developing a business plan.


In fact, not a few entrepreneurs who have never taken the time to prepare and develop a
business plan for the business. In the end, affect the high failure rate experienced by small
companies due to weak business planning kurangnnya slayings.


Is it a Business Plan?


A business plan is a written summary of the plan to establish a company or running a business
which contain detailed description of the operations and financial plans, opportunities and
marketing strategies as well as management skills. The business plan outlines the direction of
the company that wants to achieve, along with the strategy to achieve it as a road map for
entrepreneurs towards building successful businesses.


The business plan, is proof that an entrepreneur has done penelitihan necessary, adequate
learning opportunities, and ready to do business with a profitable business model.


What Importance of Preparing a Business Plan?


There are two main reasons are very important and fundamental why every entrepreneur should
develop a business plan for their business. First, as your business operations, second, attract
lenders and investors.


Free Business Operations
The business plan provides a guide entrepreneurs in running the company, because by writing
plans made for goal setting and achievement strategies, entrepreneurs will certainly facilitate
evaluation, development and reduce the risk of operational errors are fatal for the company.


The process of preparing a business plan will make entrepreneurs changed from "I THINK" to "I
KNOW" in running the business.


In addition, the preparation of a business plan to force entrepreneurs reveal their ideas in reality
testing, with the question "Can business really profitable? '.


Interesting Lenders and Investors


Every effort is definitely needed in the amount of capital in accordance with the business to be
run. Venture capital can be sourced from its own capital, loan capital or capital from investors.


Apply for a loan and attract investors without adequate business plan, often fails. In other words,
the best way to secure the working capital needs is to create a compelling business plan and
adequate enabling potential entrepreneurs deliver on the business opportunities that will be or
have been carried out to lenders and investors.


In essence, an adequate business plan is required by every entrepreneur, whether as a map of
running a business and looking for a means of capital in building a successful business as
expected.


Five Mistakes Frequently Occurs in Business Planning


Here are five common mistakes in preparing a business plan with respect to the submission of a
loan and attract investors, namely:


1. Too much information


Is the business plan which consists of 25-50 pages better than 200 pages? The answer is
"YES". Most lenders and investors will focus on a few specific points to see the business
opportunities on offer, so the business plan allows not read too thick and dull.


Keep in mind, that your goal is not to create a business plan to show the reader the breadth and
depth of your knowledge, but to show the key elements of a business plan that gives hope of a
bright future for the business in question.


If there is information that can not be separated from the business plan, should be pasted on the
behind as an attachment to the reader background information.


2. Hiding weaknesses of the business


Some thoughts are believed by the writer business plan failed, as they often hide flaws
business. For example, "Why do we write something that would give a negative impression" or
"after we get the funds, we can deal with existing weaknesses".


If the business plan writer business so he hides flaws and potentially fatal fails in his attempt.
Meanwhile, savvy investors will find the answer might be in the first 10 minutes, then the
question on investors' minds, "What else do not you tell me?"


When you have lost the element of trust, it has gone a chance to get the funds. The best way to
handle business is to explain the drawbacks of existing weaknesses and effective plan to
address the weaknesses in question.


3. Distribution channels is not clear


The business plan should explain how your products and services effectively reach the target
market. Unclear distribution system, resulting in inhibition of products and services to
customers. Could ultimately threaten the survival of the business.


Below is an example of a statement that informs the investors that the product does not have a
clear distribution system would threaten business continuity.


"We will market our products through the Internet, distributors, agents, wholesale, direct selling,
retail outlets, telemarketing,"
4. Weak competition analysis


List the name and address of an existing business competitors is not enough. Investors are very
interested to know what you know about the business competitors. For example, business
strategy, core competencies, distribution systems, advantages, and disadvantages they have.
Knowing just a little about your competitors, is proof that you do not prepare properly the
business, including the business competition.


5. Financial projections are not qualified


Financial projections are not supported by adequate analysis and estimates will provide the
investor distrust.


The business plan should prove to creditors and investors that the company is able to pay back
the loan and generate attractive returns.


Key Elements of a Business Plan Qualified


Entrepreneurs who invest their time and energy to the business plan, will be better prepared to
face the risk of doing business competition. In previous editions we have discussed the
business plan as a road map and a means of acquiring capital entrepreneurs in building a
successful business.


Although the business plan does not guarantee 100% success, but this plan will increase the
chances of business success for entrepreneurs. There are many approaches in the preparation
of a business plan. However, a quality business plan includes at least eight main elements,
namely:


  Executive summary.
  General description of the business.
  Marketing plans.
  Production plan.
  Analysis of competition.
  Financial plan.
  Human resource plan.
  The main risks faced.


  Executive Summary


This element is a brief summary, the entire contents of a business plan, both related to business
objectives, business strategy, general description of the business, marketing plans, production
plans, financial planning, human resource planning, and business risks in the future.


   General description of business


This element describes the vision and mission, along with a business carried on goods and
services produced, objectives, and strategies to achieve them. Picture of the company's current
position, and future, target market, competitive advantage, business locations, management of
the core, forms of business, management concepts and others run


  The marketing plan


This element describes the selected market share as well as marketing and promotional mix
made by a company to meet the needs and desires of consumers, sales budgets, pricing
strategy, distribution strategy adopted and others.




   Analysis of competition


This element describes the strength of the company to his business competitors, strengths, and
weaknesses of competitors.


  Production plan


This element describes the production process, how companies maintain the quality of the
product, how do companies obtain supplies of raw materials, goods and services, plant site
selection considerations, and sebagainya.Uraian production budget is very important, especially
for companies engaged in manufacturing.


   The financial plan


This element describes the financial projections that show the profit expectations, projections of
financial statements, cash flow projections, break-even point, capital requirements, and
projected return on investment.


   Human resource plan


This element describes the personnel required both in terms of quantity and of knowledge, skills
and abilities needed to run the company.


   Key risks facing


This element describes the risk faced by business in the future with anticipation of the company
to address these risks. The business plan is usually arranged between 25-50 pages.


Business plans that are too short, often not able to provide an adequate description of the
business. Likewise too long, has probably not used or is not readable. In the preparation of the
business plan, the entrepreneur should pay attention to basic elements of a business plan as
mentioned above as a starting point to structure and should be modified as needed based on
existing conditions. So the business plan can actually be used as a road map to business
success are built. (*)

				
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