Entrepreneur

In my last  blogpost, we looked at “Extreme Future”. how Information Technology have impacted our business and personal landscape and still evolving in this decade.

Today topic is on “Business Plan Successful Entrepreneur Must Have”.

What is a business plan and why do I need one?

A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. It basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. because it provides specific and organized information about your company (business) and how you will repay borrowed money, a good business plan is a crucial part of any loan package.

One of the biggest reasons home based business owners do not create a business plan is because they do not know what it should contain.

There is no universal format to outline your business characteristics and goals, Most successful entrepreneurs have most elements of the following:

Elements of a Business Plan

1. Statement of purpose (Business Vision)

2. The Business

• Description of Business Activity
• Market product/service category and customers & growth potential
• Market share & competition
• Market strategy – Unique Selling Points
• Break even analysis
• Pro-forma income projections (profit & loss statements)
• Two Year Summary – Detail by month, first year; Detail by quarters, second year
• Pro-forma cash flow

3. Repayment (if any)

4. Assumptions, supporting evidence of “reasonableness”

5. Security – existing credit lines / secured assets

Bye from now.

Reuben H C Ong (a.k.a Reubeno)

Website: https://reubenointernet.com/

Email: reubeno@reubenointernet.com