Small Business Guide: Refining Your Business Plan

Part 7
*This information is taken from the Small Business Center Network (SBCN), part of the North Carolina Community College System, and full packet, entitled “How to Develop a Business Plan” can be viewed here.
*This blog is Part 5 of a series on small business guidance. Stay tuned for more blogs. Check out Part 1Part 2Part 3Part 4Part 5, and Part 6.

 

Many people need to modify their business plan to suit their audience for which the plan is written. Below are some examples for intended audiences:

Raising Funds from Outside Parties:

If your business plan is for bankers include:

  • Amount of loan
  • How the funds will be used
  • Repayment terms
  • Collateral offers and existing liens

If your business plan is for investors include:

  • Funds needed short-term and long-term
  • How the company will use the funds
  • Estimate return on investment
  • Exit strategy for investors
  • Percent ownership for investors
  • Involvement of investors on the board or in management

Types of Businesses

If your business is involved in manufacturing include:

  • Planned production levels
  • Direct production costs and indirect costs
  • Gross profit margin
  • Production/capacity limits of physical plant and equipment

If your business is involved in services include:

  • List the competitive factors in this industry
  • Your prices
  • Methods used to set prices
  • Quality control procedures
  • Credit, payment, and collection policies and procedures

If your business is involved in technology include:

  • Research and development for new products
  • Plan on protecting intellectual property
  • How you will bring product/service to market

If your company is a retail business include:

  • Pricing and markup policies
  • Inventory selection, level, and pricing
  • Customer service polices
  • Location
  • Credit information

Of course, not everyone’s company is going to fit in the above models. The purpose of this blog post (and this blog series) is for our readers to think about what aspects apply to their specific business.

Contact us!

If you have any questions please do not hesitate to email me at john@beerlawcenter.com or john@mathesonlawoffice.com or call 919-335-5291.

Be sure to check out Beer Law Center and Matheson Law Office for all things NC legal.

 

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