Business Plan
A business plan precisely defines your business, identifies your goals, and serves as your firm’s resume. The basic components include a current and proforma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make good business decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan application. Additionally, it informs sales personnel, suppliers, and others about your operations and goals.
Importance of a Business Plan
The importance of a comprehensive, thoughtful business plan cannot be overemphasized. It is important for:
- outside funding
- credit from suppliers
- management of your operation and finances
- promotion and marketing of your business
- achievement of your business goals and objectives
Despite the critical importance of a business plan, many entrepreneurs drag their feet when it comes to preparing a written document. They argue that their marketplace changes too fast for a business plan to be useful or that they just do not have enough time. But just as a builder won’t begin construction without a blueprint, eager business owners shouldn’t rush into new ventures without a business plan. It is true that the marketplace changes too fast for any long-term business predictions to come true; nevertheless, the first year’s month-by-month predictions are usually 90% true. Thereafter, slowly it becomes calculated guesses, but still planning provides the impetus, energy, and drive necessary for the business to achieve its objectives.
Before You Begin
Before writing your business plan, you need answers to the following core questions:
- What service or product does your business provide and what needs does it fill?
- Who are the potential customers for your product or service and why will they purchase it from you?
- How will you reach your potential customers?
- Where and how will you get the financial resources to start your business?
The clearer are your answers to these questions, the better will be your business plan. Be as detailed as possible. Writing the answers down provides a firm ground on which your business plan may be based.
Tentative Index of a Business Plan
[ Note: The index will change according to the information obtained/to be disclosed. Not all information may be disclosed. For example, if you are not applying for a loan, then the last three year's tax statements of principals need not be disclosed. Much other information can be added or deleted as per the market's demand and supply conditions with respect to your business.]
INDEX
1.0 Executive Summary
1.1 Description of business
1.2 Objectives
1.3 Mission
1.4 Marketing
1.5 Competition
1.6 Operating procedures
1.7 Personnel
1.8 Business insurance
1.9 Keys to success
2.0 Company Summary
2.1 Company Ownership
2.2 Company History (for ongoing companies) or Start-up Plan (for new companies).
2.3 Company Locations and Facilities
3.0 Products and Services
3.1 Product and Service Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing and Fulfillment
3.5 Technology
3.6 Future Products and Services
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Target Market Segment Strategy
4.2.1 Market Needs
4.2.2 Market Trends
4.2.3 Market Growth
4.3 Industry Analysis
4.3.1 Industry Participants
4.3.2 Distribution Patterns
4.3.3 Competition and Buying Patterns
4.3.4 Main Competitors
5.0 Strategy and Implementation Summary
5.1 Strategy Pyramids
5.2 Value Proposition
5.3 Competitive Edge
5.4 Marketing Strategy
5.4.1 Positioning Statements
5.4.2 Pricing Strategy
5.4.3 Promotion Strategy
5.4.4 Distribution Patterns
5.4.5 Marketing Programs
5.5 Sales Strategy
5.5.1 Sales Forecast
5.5.2 Sales Programs
5.6 Strategic Alliances
5.7 Milestones
6.0 Web Plan Summary
6.1 Website Marketing Strategy
6.2 Development Requirements
7.0 Management Summary
7.1 Organizational Structure
7.2 Management Team
7.3 Management Team Gaps
7.4 Personnel Plan
8.0 Financial Plan
8.1 Loan applications
8.2 Capital equipment and supply list
8.3 Important Assumptions
8.4 Key Financial Indicators
8.5 Break-even Analysis
8.6 Projected Profit and Loss
8.7 Projected Cash Flow
8.8 Projected Balance Sheet
8.9 Business Ratios
8.10 Long-term Plan
9.0 Supporting Documents
9.1 Tax returns of principals for last three years Personal financial statement (all banks have these forms)
9.2 For franchised businesses, a copy of franchise contract and all supporting documents provided by the franchisor
9.3 Copy of proposed lease or purchase agreement for building space
9.4 Copy of licenses and other legal documents
9.5 Copy of resumes of all principals
9.6 Copies of letters of intent from suppliers, etc.
Conclusion
A good business plan is imperative for any business be it small, medium, or big if it needs to survive in today’s tough business environment. Like a warrior sharpens his sword for 6 hours for a battle of 6 minutes, similarly a businessperson should take several days to prepare his business plan in order to survive for many years.
The Great Two-Sided Business Card Debate
A business card is one of the most important marketing pieces that you’ll develop
for your company, since it is typically the first piece of your marketing materials that
a new client will see.
One of the most debated points in business card design is whether to print
information on just one side of the card or to use both sides. There are many views
on this controversy, and here are some that we frequently hear.
The arguments for keeping the back of the card blank are that printing on both
sides has the following disadvantages:
o Not having a space to take notes while networking: Many business
people use a system of writing notes on the backs of the business cards they receive
while networking. They do this to remind themselves of the commitments they
made or to later jog their memories about the conversation. Too much printing on
the back can make this difficult or impossible. Glossy coatings on the backs of cards
can also prevent note writing.
o Rolodexes, business card filing systems, and card scanners: These are
widely used in business today, and many models don’t allow for the back of the card
to be viewed. For this reason, you should not put vital information on the back, so
that the card can still be functional when only one side is visible. Also, if your
prospect uses a business card scanner to store business cards, they might not scan
both sides.
o Greater printing expense: Printers charge more to print a two-sided card, because of the additional work and ink involved.
o Ink smearing: Some inks are more likely to smear or rub off on
neighboring sheets of paper than others; for example, blue Pantone inks are
especially prone to this effect. If you do choose a two-sided card with a field of
color on the back, then it is best to also varnish or clear-coat the back of the card in
order to seal the color in and prevent this. The varnish also adds drying time and
expense to the
The arguments for putting information on both sides are that you can use the back
to:
o Add more information: If you have a lot of contact information, putting
it all on to the front of the card will often make the font too small and the text too
dense to read comfortably. Putting some of that information on the back will free up
the front of the card and make it look better.
o Make your business card more valuable: By including interesting
information like a calendar of events, tip, or quote on the back, you can make your card more likely to be kept. Other things that you can put on the back include
coupons, appointment information, or directions to your store or office.
o Enhance your brand: The back of the card is often the perfect place for
graphical treatments and pieces of your Visual Vocabulary.
o Maximize your message: Use the back to add more information about
your business. It might not be clear to everyone receiving your card what you offer,
so you might try listing that on the back.
And it might not cost that much. Some printers will print a two-sided card for as
little as $20 extra per 1000 cards. In that case, the low price for additional “real
estate” really makes it worth the cost.
With all of these points in mind, the most effective card for small businesses is often
a two-sided card. The next question to address is what to put on the back of the card. We recommend:
o Not putting vital information on the back of the card: Since the back of
the card might get hidden or ignored in a filing system, it’s best to put all of the
most important information–like your name, logo, phone number, email, and
website–on the front of the card. If you have a physical office, you should also
make sure that your address is on the front of your card.
So what’s left to put on the back? You could put your tagline, a couple of lines that
explain your offerings, a list of your services, or a short testimonial. Or try one of
the suggestions from “Make your business card more valuable,” above.
o Try graphics: You can print a field of color, small graphic, or a simple
pattern on the back. A card with graphics on the back looks more sophisticated and
high-end, and is more memorable as well. If you don’t print in a color that is too
dark and you use a solid color field, people will still be able to take notes on the
back of the card. Just don’t forget the varnish!
If you use these tips, you’ll be able to maximize the effectiveness of your business card. Your card will go from being just a thing to hand out when you meet someone
to being a strong marketing tool.
Business Card Etiquette – How to Give and Receive Business Cards
A business card is a singularly powerful tool for self-advertisement. If lets you market yourself to a very wide audience without the hassle and prohibitive cost of newspaper advertising.
When you have business cards printed in bulk, however, be sure to get yourself a business card case. It’s crass to distribute your business card without putting them in a business card case first.
How to Distribute Your Business Card
Is there a right way to distribute a business card? Is there a wrong way of doing the same? The answer to both questions is yes. In distributing business cards, there is a right way and a wrong way. There is no right way of doing it the wrong way.
The Wrong Way: Distributing your business card as if you are dealing playing cards.
The Right Way: Never pass out business cards like you would pass around sheets of paper or playing cards. Keep them in a business card case. Additionally, present them in such a way that the recipient can read them right side up.
As the recipient takes a card from your business card case, make an effort to keep up polite chatter. If, on the other hand, you are the recipient of the card, comment as you take the card out of the business card case. Then, subtly, put it in your pocket.
When networking, remember to keep your business card case inside a pocket you can easily reach. It is not seemly to have to rummage for your cards while exchanging banters with high-ranking executives.
Keeping Up Appearances
Your business card is your advertisement. It should, thus, be representative of the image you are trying to get across. So, make sure they are never creased, wrinkled, dirty, or scribbled upon. To help your cards remain spotless and crisp, keep them inside a business card case.
Tips for Cross-Cultural Card-Giving
1. When traveling abroad, have your information printed in English on one side and in the language of the country you’re visiting on the other.
2. When giving out business cards in Asia, remember to use two hands to give and receive cards. Be sure to put the card that you receive on the tabletop, at least until the meeting ends. After the meeting, put the business cards you received inside a portfolio or a business card case.
3. If you ask someone for a business card, offer yours in return. The same rule applies for times when it is you who does the asking.
The act of exchanging business cards is as important as a handshake. After all, when you exchange business cards with someone, you trade not just contact information. You exchange the possibility of a future with each other in it. Do it with style.