Your business plan serves as a sales tool, not directly to your customers but to your financial backers and even to yourself. The research and the manner in which your business plan is organized and written is designed, first, to sell the initial business concept, and then to sell the success of the business. Below are five ways in which your business plan can serve as a sales tool:
1. To Investors. You may initially use your business plan as a means of generating startup funding from investors. You research and write each section in a manner that sells investors on your goals and specific business strategies.
2. To Yourself. In the process of researching and writing a business plan, you make the most important sale of all, and that is selling the business idea to yourself. By taking an objective look at the data you have researched, you may discover that you cannot feasibly make this business work. On the other hand, you may not only sell yourself on the idea, but also realize that with some adjustments the business may have greater potential than originally anticipated.
3. To Outside Talent. A strong, well-written business plan can entice top-level talent to come aboard. By selling your business ideas and a profitable long-range plan, you can attract talented people who may be more inclined to stay for the long haul, rather than join a company not knowing what to expect and leave at the slightest downturn.
4. To the Bank for Loans. Along with financial documents, you can support your need for a bank loan by using your updated business plan to sell the success of the business and need for new equipment or expansion.
5. To Buyers. You may sell your business more easily by showing potential buyers how your business has stuck to the goals and principles set forth in the original business plan. By updating the business plan periodically, you can illustrate growth patterns, milestones reached, achievements, and overcome obstacles to support your asking price when it is time to sell your business.
by AllBusiness.com Inc