A basic business plan always contains a single document divided in several sections: an executive summary, a business plan, a description of the company, the industry study, marketing plans, finance proposals, and accounting details. Each section is further subdivided into subtopics such as licenses or permits required, financial projections, distribution and marketing strategies, financial data sources, information technology, and human resources requirements. This document is used by investors, bankers, loan officers, and other financial institutions as a basis on which to issue loans, invest in a corporation, or decide how to divvy up assets among partners. Writing a business plan usually takes a considerable amount of time and effort. So it is quite natural for entrepreneurs to seek ways on how they can speed up writing the document.
Fortunately, there are several ways on how one can create a business plan template to expedite the writing process. One of which is to find a ready-made format that most investors, venture capitalists, angel investors, and other funding sources like venture capital firms use in drafting their own investment proposals. Using an executive summary may be a good option since it serves as the initial meeting point of the whole document. This way, investors who read through the entire document will have an idea on how to prioritize the various sections.
For startup companies, it is also helpful to find a business plan template that incorporates a fictional company’s financial forecasts using realistic assumptions about the nature of the industry they are involved in. In doing so, investors will be able to understand the nature of their projects more clearly. The fictional company’s goal in providing financial forecasts is to give the readers a picture of what their business would look like in the first three years (or whatever the desired scenario for the business is). Since fictional businesses have no known competition, it is also good to include a realistic outlook on how the market will function.
Other factors entrepreneurs and other business owners raise funding through templates include their ability to create a solid team of executives (especially if the entrepreneurs do not have experience in managing their own business) and their commitment to staying true to their business plans even when times get tough or they face obstacles. In addition, entrepreneurs and other business owners to raise enough money for each section of the document (such as management and operation; marketing, operations, finance, and accounting). Some business plan templates even make sure that all of the funding needs of the fictional company are met. This is important because sometimes entrepreneurs need help getting through rough patches and finding ways to manage their finances.
Finally, entrepreneurs should take note of the business plan template’s recommendations on how they should conduct a financial projections. Usually, this involves a spreadsheet (or a ledger) and formulas to project the company’s financial future based on certain assumptions (such as the average price for the product or service, number of units bought per month, and average sales per week.) Some even require the entrepreneur to include a projection of debt, equity, and payroll for the imaginary entity. While these aspects can be difficult to do on your own, many templates offer guidance on what should be included. This is important because it helps entrepreneurs and other business owners to ensure that their financial models are realistic and will not run the risk of investors or lenders decreasing their funding.
There are other aspects of a business plan template that can make a huge difference to the success of a business. When comparing several templates, it’s important to check out the executive summary and other details. The executive summary, which is most often the first thing readers see when they open the document, is where you will get most of your information. Make sure it includes everything you need to know, including an executive summary that is well organized and easy to read. By opening with a quality introduction and quickly moving on to the rest of the text, readers will feel more confident with the format of the finished document.