After further research of the two business experts Jay Turo and David Gumpert, in addition to my own research, I now fully understand the importance of business plans and how investors and other third parties use business plans to make decisions.
Turo and Gumpert both impressed upon me how important it is to know all of details about my business and how to convey these important facts both in the business plan and in execution of the plan. It is not enough to simply outline in a business plan the attributes, strengths, weaknesses and strategy of a business. Execution of the plan is equally important; to capitalize on the positives and opportunities of the business and to amend or extinguish the negatives and deficiencies of the business.
The experts intently expressed that you must have a concise, detailed and direct idea of how your business is structured and operated, as well as how it will be profitable and how it will address its shortcomings. This requires an intense knowledge and understanding of my business. In addition, you must be able to express the knowledge of your business to investors and third parties.
Prior to preparing sections of my own business plan, I had not thought out the specifics of my business, its positioning, and what I thought the trajectory of my business is and should be. After researching with the experts, I redressed my business plan to make sure that it was as detailed and informative as possible. I wanted my plan to answer any question that a third party may have about my business. It is important that my plan shows my wisdom about my business, its market, the company’s short and long-term ambitions and our plan to attain them.
The most important sections of the plan to investors are the marketing section, financial section and the SWOT (strengths, weaknesses, opportunities and threats) sections. Marketing is very important because you must know your target audience, and you must know the most effective way to reach that audience. Marketing and branding are the life forces of any business. With the evolution of technology, marketing has become more precise and allows a business to be more effective. The financial section is undoubtedly the most reviewed and analyzed section of the business plan. Numbers don’t lie and the operations of the company are predicated upon the financial structure and its implementation. The SWOT section gives an internal and external examination of the company’s corporate health. This section outlines the good, bad and ugly of the company, for the executives of the company and for potential investors.
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