Pages

Sunday 27 March 2011

Gathering the Right Data

Business plans are only as effective as the data on which they are based. One of the worst things
that can happen to executives is to have prospective investors or lenders discover important
information about a company’s industry, market, or technology that should have been in the
business plan.
The writing process becomes much easier - and quicker -if certain data is available before
writing begins. Then writing does not have to be interrupted at critical points in order to gather
essential information. The key data includes the following:

Company Description 
 
Name
Legal form
Location
Financial highlights
Shareholders


Management and Organization

Organization chart
Key management
Board of Directors
Consultants and advisors
Compensation and other employee agreements
Other shareholders, rights and resolutions


Market and Competitors

Market statistics
Competitor data
Market and customer surveys


Product or Services

Product literature and technical specifications
Contracts and/or purchase orders
Competitive advantages
Patent, license, and trademarks
Regulatory approvals or industry standards
Operations plan
Research and development plans


Marketing and Sales

Marketing plan
Marketing vehicles
Marketing materials


Financial Information

Financial statements for up to past five years
Financial forecasts and projections and assumptions
Amount and timing of needed funding


You may choose to add other sections, depending upon the requirements of your company. A more detailed checklist of data that you will need to support the written plan is found in Appendix B.



Outlining the   Plan

You should organize your business plan in clearly defined sections covering the different
aspects of the company. Putting together an outline forces executives to come to some early
decisions about what will be where in the business plan. For example, carelessly organized
plans often describe the market for a product in the same section as the product description,
or describe the product in the market section. Outlining also requires the executives to
understand the necessary level of detail that should be included in the plan.

0 comments:

Post a Comment