Find Out About Writing a Business Plan

If you have entered a new era in your life of no longer wanting to be working long hours to satisfy your boss, then perhaps you have mooted the idea of starting a new business but are rather overwhelmed with the idea. With the seed of a concept of a possible business, you will next need to know the essentials of writing a business plan or the fundamentals of writing a business plan done for you using the skills of a business plan consultant.

A good business plan is critical before looking for a small business loan from any bank that deals with small businesses, Government sponsorship, or lending service. Understanding the rudimentary principles of accountancy is essential in your business plan; it is very essential to record all business transactions logically, usually sorted by date.

A business management consultant usually uses a spreadsheet, and Microsoft Excel is probably the most likely, to represent all the transactions of the business, the data being displayed on usually more than one page of the spreadsheet; oftentimes a summary page gives a list of all outgoing and incoming transactions recorded daily, and then other pages will give more details about certain titles of expenditure – for instance, a country house hotel business would itemize alcohol purchases, bread, milk, food, frozen items, curtains, equipment needed for repairs, hiring of cigarette machine, etc for each day on the main summary page, but there would be a detailed page for each of these topics which would list all entries for alcohol, for example, for the current month.

When you have to learn about writing a business plan for starting a new business and seeking to get a small business loan, you will need to write the plan by displaying in a predictive manner what represents future earnings instead of recording actual figures on a daily basis as they occur.

So being involved in writing a business plan includes not just income and expenditure forecasting for each month for the next 24 months but also showing evidence proving that your data can be backed up with solid facts.

A business management consultant will invariably stipulate that some form of market research is done for the business plan structure; this may be possible by simply talking to prospective customers, if you are wanting to start the business in a town, and making a document that shows the questions and answers; note that carefully planning the questions can alter the response that people give.

As an extra to an excellent business plan, a small business financing company will require a report of your credit worthiness and any bad credit history, personal resume, the purpose of the loan and what you intend to spend the money on, a balance sheet predicting the profit / loss of the business from day 1, details of all income and expenses that are predicted from day 1, e.g. mortgage payable on business property, rental of equipment, stationary supplies, staff wages, marketing / promotion costs. If the business is already established, you’ll also require details of past finances for the last 3 years and details of unpaid debts at the start of the business and your intentions showing how you will repay these in addition to the payments required for the business loan.

Some amount of knowledge of writing a business plan makes a vast difference for starting a new business but after that it is down to a lot of hard work and perseverance; a small business financing company will be very hostile towards someone who shows them a crappy business plan, or if they don’t come across as being confident because of insufficient knowledge about how to run the business or how to treat its customers.