7 Key Parameters to Include in your Business Plan TemplateAbbakin
Most entrepreneurs are reluctant to write down their business plan but we have made this process easier for you with our free business plan template; including the main parameters to include in your business plan template to help building a plan seamlessly.
This free business plan template provides a systematic assessment of all the factors critical to your business purpose and goals.
It contains the information required by financial institutions, tax authorities and potential investors for assessing your business idea and loan applications.
Preparing and maintaining a working business plan is important for any business, regardless of its size, nature or organizational structure.
With this tool, you can begin to assemble your wining business plan by the end of this session – with a list of main topics to include in your plan.
What is a Business Plan Template?
A business plan template is a business plan sample that provides a wealth of information to help you document you own business ideas.
A good business plan format could help visualize your business capital expenditure and projected return on investments (ROI).
Most business plan template includes some necessary features of a perfect business plan that will make your business proposal a comprehensive document.
Download the Business Plan Template here.
Below are some important components of a good business plan every entrepreneur must understand and tailor to suit his/her business idea.
7 Key Parameters to Include in your Business Plan Template
#1. A Vision Statement
Your vision statement simply defines the core ideals that give the business its shape and direction.
This statement will be a concise outline of your business purpose and goals.
#2. The Business Profile
This section describes your intended business and how you plan to running it.
Your company description provides information on what you do, and what differentiate your business from other competitors.
Try to stay focused on the market your business intends to serve here. And include the target customers for the company’s products or services.
The executive summery is a snapshot of your business plan as it touches on your company profile and goals.
What is your product line and how does it benefit your customers?
#3. Organization and Management
Include your business legal structure and management resources here.
Your business can be a form of sole proprietorship, partnership venture or Limited Liability Company.
By far, the most important ingredient for a success business will be yourself.
Focus on how your prior experiences will be applicable to your new business.
Be factual and avoid hype here.
Prepare your résumé and one for each person who will be involved in starting the business.
This part of your business plan will be read carefully by most partners, including your lenders, investors and vendors.
If you lack the ability to perform a key function in a business, include the qualified team member who is taking control of the task.
If you lack the ability to train your staff, include an explanation on how you will compensate for this deficiency.
Maybe you will need to hire the service of a human resource development agency to do just that.
Also, you could plan to hire key people who will provide skills, services or opportunities you don’t have.
Include a brief biography and experience of all your intended board members, your partners or internal management team – and describe their functions within the company.
#4. Economic Assessment
Your business will be part of a specific economic sector or industry.
Here, you will provide a complete assessment of the economic environment or market in which your business will thrive.
Investigate a market analysis that identifies:
- what the primary customers are demanding for,
- the major player in the industry,
- your potential sales opportunities and/or
- variables that are likely to prove fatal to the venture.
Explain how your business will be appropriate for the regulatory agencies, geographic location and demographics which you will be dealing with.
You can provide your market studies with demographic results and/or business traffic flow statistics.
Normally, some of this information is available from your local planning departments or trade associations.
#5. Financial Projection
What is your assessment of what could go wrong in your business and how you plan to handle problems?
Things like cash liquidity or shortage. For example, when you can rent or lease a space.
Prioritize those areas where your options are limited to paying in cash, and review alternatives where there may be other ways.
For a small business seeking outside funding or loan from the banks, you financial projections should be able to back up your funding request.
Your prospective financial data will include a description of your business physical location, facilities and equipment needed; inventory requirement, suppliers and any other operational plan.
Include a one-year cash flow projection that will incorporate your capital expenditure budgets.
With the finance in place, how do you plan to start or maintain the business through year one?
Raise only the amount of money you required to finance your next experiment, with a cushion for contingencies.
In our future classes, you will learn how to predict future cash needs using cash flow control methods, like income statement.
You may also want to include your balance sheet, your sales forecast, business ratios and brake-even analysis.
#6. Marketing and Expansion Plans
To drive sales, maintain customer loyalty and ultimately grow, your business will define its marketing and expansion strategy.
How do you plan to market your business? And…
What is your sales strategy, pricing plan, and proposed business advertising activities?
Your marketing and expansion plan should describe how you plan to test your markets and products – even before rolling out and opening your doors.
Be specific here.
Include the management responsibilities, budgets and measurable milestones with dates.
At some point, you may start on a small scale in the real world through customer research, test marketing, or prototypes.
Ask yourself if your experience or expertise gives you the right of opinion on specific opportunity.
Remember: Don’t be everything for everybody!
If you can acquire the necessary skills and technology, focus on key success areas that can accelerate your startup journey.
As a rule, specialists do better than non-specialists.
#7. Damage Control Plan
All businesses will experience episodes of distress and this should be covered in your business plan.
Your survival will depend on how well you are prepared to cope with these challenges.
Your damage control plan should anticipate potential threats to your business and how you plan to overcome them.
Here are three examples of damage control plan:
Plan for 35% loss of sales
During economic downturns, your survival will depend on your ability to maintain liquidity for a period of at least 12 months.
Can your cash flow plan show how to avoid running out of cash?
Plan for a catastrophic incident
Businesses can be overturned by unforeseen disasters which can be avoided by maintaining appropriate insurance cover or quality safety standards.
You will need the assistance of a qualified insurance agent and safety professional here.
Plan for product obsolescence
If your business is in fast-moving consumer goods (FMCG) category, or rapidly changing technology area such as home electronics, mobile phones, etc., you will need to plan on how to keep a step ahead of technology changes and advancements.
A continues product research and development is advised in these cases where necessary.
Wrapping Up: 7 Key Parameters to Include in your Business Plan Template
It is our recommendation that you be the sole author of your business plan – by writing out the plan yourself and in your own words.
The internet, libraries and bookstores also provide valuable resources and information that you may need to design a good plan for your kind of business.
We have provided a Microsoft Word business plan template to help you analyze the best strategies that will grow your business.
You can download and print the Free Business Plan Template included in this session now.
If you have any problem building the tools or software that can grow your business, kindly get in touch here.