Question

What do you expect to see in a business plan?

What do you expect to see in a business plan?
And what if the business first needs 8 months to develop a product?
During this time there will only be negative cash flow, projecting this in the plan won't be a problem?
Also how to forecast on sales when you still need to develop the product? Isn't it all mere speculation?

1 year ago - 3 answers

Best Answer

Chosen by Asker

Purpose of the business:

a) Why there's a need for the business
b) How the business will function
c) Who will own and operate the business
d) How the business will be structured
e) How the business will operate
f) Where the business will operate
g) Financial Section - proforma financial statements, financial analyses, etc

All of the sections should be thorough. For example, Who will own and operate the business should provide detailed CVs on each key person, key service providers, etc.

1 year ago

Other Answers

I would expect to see a financing plan, an organizational structure, the names of the principal owners/managers, a human resource plan, an economic forecast, a demographic overview, a cost and other expense itemization (this is different from the financing plan), a publicity/communications plan. For a good business plan, this should take a minimum of one month to plan out, research and write (I am assuming a few hours per day).

Finally, you need to be able to justify and defend all the assumptions used in the business plan - if you can't justify the numbers and defend them, you won't be taken seriously by a financier.

by Steve D - 1 year ago

Investors aren't stupid and an expectation of profit in the first year will invalidate your proposal. They already understand how long it takes for a business to make money, so don't worry about that.

When it comes to speculation, you can just guess or use market data (guess which is more accurate). You look at the industry and current market conditions. From there, you can look at the sales figures of competitors to get an idea of your numbers. You will want to estimate a low, mid and high range for your forecasting.

If you aren't understanding this, maybe take a business plan class at your local community college. They are cheap and you will learn a lot!

by Casey Y - 1 year ago