Your next 5 year business plan
A good 5 year business plan can clarify the mission and direction of your company and help secure loans or investments. It should be clear, concise, and free of superfluous charts or graphics that can be distracting to commercial loan officers or other individuals from which you’re seeking investment money. Along with outlining the finances you’ll need; your plan can help you clarify goals and manage important factors like current function and future growth of your company.
Before you begin, make sure you have a thorough knowledge of the components that make up a successful business plan and the specifics of your company. Your plan should define a clear strategy that combines your goals along with your vision for the future. Do this by spelling out how you will reach your objectives in the market via e-commerce, retail locations, business-to-business, business-to-consumer, or a combination of the above.
Begin your 5 year business plan with an executive summary that defines your goals, objectives, and business strategy along with an explanation of how your personal expertise will help you successfully complete them. Make sure this section is brief, but powerful and is focused on achievement. Use the limited time you have to grab the attention of investors or lenders who spend their days reading similar requests.
Along with your own qualifications, speak to the talent of your team. Write interesting biographies of your management team that showcase the experience and skills they bring to the table that will help your company reach its goals.
Explain how your skill set as well as that of your management team are uniquely qualified given the direction of your company. For example, if you’re planning to offer online goods and services, having a strong tech background is a huge advantage. Similarly, if you’re planning a brick and mortar establishment, good customer service and interpersonal skills are key to in-store success.
Finally, provide financial projections, using documents like an income statement, balance sheet, and cash flow estimate to show, in real numbers, the future financial potential of your business.
Plan now, avoid mistakes
Taking the time to research the market you’re entering is the best way to approach a good 5 year business plan, and its excellent preparation for questions that may be posed by potential investors. Although your projections will include hypotheticals, your best chance of getting results is to show that you “know your stuff” backwards and forwards.
Avoid potential pitfalls by presenting a thorough but concise plan. Flashy, colorful graphics detract rather than add to the appeal. And, when it doubt, feel free to contact us at GYL, and let our professional staff guide you through the process. You only get one chance to make a first impression; we’re here to make sure it’s a good one.