3 year business plan
We invite you to access our services online or by phone. Planning is key to any business throughout its existence. Every successful business regularly reviews its business plan to ensure it continues to meet its needs. It's sensible to review current performance on a regular basis and identify the most likely strategies for growth. Once you've reviewed your progress and identified the key growth areas that you want to target, it's time to revisit your business plan and make it a road map to the next stages for your business. This guide will show how you can turn your business plan from a static document into a dynamic template that will help your business both survive and thrive.
Prepare a business plan for growth
There are many reasons why every company should have a business plan , but not every business needs a formal plan to show to outsiders. If your plan is just for yourself and your team, then you may be fine with just the lean business plan. However, if you do need to develop a plan to show to investors, banks, lawyers, and so forth, you can follow this simple business plan outline and decide on how in-depth or concise your business plan needs to be.
No matter the type of business plan you create, these are the six basic sections you should include. These sections are necessary when working with an outside party or potential investor, to give them a quick look into each aspect of your business. For those looking for a deeper definition of how to fill out each section, skip to the detailed outline below. Or, check out our comprehensive How to Write a Business Plan guide, for a thorough rundown and additional resources.
Write your executive summary last. Summarize the problem you are solving for customers, your solution, the target market, the founding team, and financial forecast highlights. Keep things as brief as possible and entice your audience to learn more about your company. In the opportunity section of your business plan, describe the problem that you solve for your customers and the solution that you are selling.
It is always a good idea to think in terms of customer needs and customer benefits as you define your product offerings, rather than thinking of your side of the equation how much the product or service costs, and how you deliver it to the customer. Sometimes this part of the plan will include tables that provide more details, such as a bill of materials or detailed price lists, but more often than not this section just describes what you are selling and how your products and services fill a need for your customers.
Use this business plan section to outline your marketing plan, your sales plan, and the other logistics involved in actually running your business. The company and management section is an overview of who you are. Full-length resumes should be appended to the plan. You may also want to include your sales forecast, business ratios, and break-even analysis. Finally, if you are raising money or taking out loans, you should highlight the money you need to launch the business. The level of detail required in your business plan fully depends on what you intend to use it for.
A lean plan is useful as an internal tool for you to reference and update as you develop your business strategy. To make the best impression on banks and investors, your business plan should be presented in the standard business plan format and contain all necessary elements.
Your business plan should present what a banker or venture capitalist expects to see, in the order, they expect to see it in. Following a standard business plan outline will keep you on track, and save you from botching your best chance at getting your business funded.
For example, although the executive summary comes as the first business plan section, I recommend writing it after everything else is done, so you know exactly what appears in the rest of your business plan.
Likewise, although the management summary is usually presented toward the end of a finished business plan, it might be an easy place to start writing. And some people prefer to start with a mission statement or strategy summary. Others like to focus on the numbers first, so they start with a sales forecast or spending budget.
Start where you like , and get going. A healthy business planning process will always involve circling back often to check results and revise as necessary. As long as you have all of the main business plan components, then the order should reflect your goals. If this is meant solely for your personal use, lay it out as a roadmap with similar sections grouped together for easy reference. Should you include tables and charts in your business plan?
I believe that every business plan should include bar charts and pie charts to illustrate the numbers. Cash flow is the single most important numerical analysis in a business plan, and a standard cash flow statement or table should never be missing. Most standard business plans also include a sales forecast and income statement also called profit and loss , and a balance sheet. I believe they should also have projected business ratios , and market analysis tables, as well as personnel listings.
It can help you develop a detailed business plan or provide guidance as to what may be missing in your lean plan or pitch deck. Keep in mind that each business plan will look different depending on numerous factors , including the type of business and what you will be using the plan for. Consider the following outline to be a master version to reference and consider, but be sure to focus on the plan type and sections that are most beneficial to your business, pitch or overall strategic planning.
A summary of the problem you are solving and an identifiable need in the market you are filling. A description of the product or service you will provide to solve the problem.
A defined customer base who will most likely purchase the product or service. For info on how to define your target market, check out our guide on the subject. The current alternatives or substitutes in the market that you and your business will be competing against. Key highlights of your financial plan that covers costs, sales, and profitability. A brief outline of the amount of money you will need to start your business. Include this if you plan on pitching to investors.
A roadmap of where you currently are and specific milestones you plan to hit. A thorough description of the problem or pain point you intend to solve for your customer base. A thorough description of your proposed product or service that alleviates the problem of your customer base. Any data or relative information that supports your solution.
A list of steps taken so far, along with an outline of steps you plan to take in establishing or growing your business. Potential groups of customers separated by specific characteristics. Your ideal customer group that would be most likely to benefit from your business. A description of how your target market is not effectively served and how your business fulfills a need. How consumers in your target market tend to act including purchasing habits, financial trends, and any other relevant factors.
The perceived potential increase or decrease in the size of your target market. Your ideal customer archetype that will be the main advocate for your business. A snapshot of the potential market based on the last few sections and how your business strategy works within it.
A list of potential competitors. A list of potential indirect competitors that provide products or services that are alternatives to your business. The strategic advantage s that makes your target market more likely to choose you over the competition. An outline of your marketing and advertising strategy including costs, advertising channels and goals. An estimate of the number of sales you anticipate based on market conditions, capacity, pricing strategy, and other factors.
Details of your physical business location if necessary including location and costs of operation. An explanation of any new technology that defines your business. Any required production equipment or tools and the cost associated with purchasing or renting them. A detailed roadmap of specific goals and objectives you plan to achieve that will help you manage and steer your business. Performance measurements that help you gauge the overall performance and health of your business.
An overview of the structure of your business including roles and responsibilities of specific employees and the flow of information between levels of the organization.
A list of potential candidates you anticipate taking on high-level management roles within your company. Any positions or areas of expertise that you currently do not have candidates ready to fill those roles. A list of potential positions that you expect to require in order to run your business effectively. Expected revenue and sales for the next years, broken down into month-by-month increments for at least the first year.
Standard statistical indicators that showcase the current and projected health of your business. A repository for any additional information, including charts and graphs, to support your business plan. Size your business plan to fit your business. Remember that your business plan should be only as big as what you need to run your business.
While every business owner should have an ongoing planning process to help them run their business, not every business owner needs a complete, formal business plan suitable for submitting to a potential investor, or bank, or venture capital contest.
Instead, you can use the Lean Planning method to get started easier and finish faster. Lean Planning will help you start your business in a way that improves your chances of success. This methodology is baked into LivePlan. Follow him on Twitter Timberry.
How to Write a Business Plan [Updated for ]. What needs to go into a business plan? Executive summary Write your executive summary last. Opportunity In the opportunity section of your business plan, describe the problem that you solve for your customers and the solution that you are selling.
Execution Use this business plan section to outline your marketing plan, your sales plan, and the other logistics involved in actually running your business. Company and management summary The company and management section is an overview of who you are.
Common questions when writing a business plan What type of business plan do you need? How do you build a business plan? Is the order of your business plan important?
More business planning advice: Size your business plan to fit your business. Sample business plans: Over free sample business plans from various industries. Business plan template: This fill-in-the-blank business plan template is in the format preferred by banks and the U. Perfect for businesses that are just starting out that need a more fluid planning process. Lean plan template: Download this template to quickly make a one-page lean business planning document.
How to start a business: An easy-to-follow six-step process for starting a new business. LivePlan: Easy cloud-based business planning software for everyone.
In our 3-Year Business Plan, we posted the long-term vision of “Aiming to be a World Leader in the Non-Ferrous Metals Industry and an Excellent Company. A business plan serves two valuable purposes. The first is internal: A three-year or five-year business plan helps you focus on the steps you need to take to get.
Although some small businesses manage to grow successfully without a formal business plan, creating a business plan for the short term serves two valuable purposes. The first is internal: A three-year or five-year business plan helps you focus on the steps you need to take get your business up, running and growing. Second, the plan communicates to outsiders the nature and seriousness of your undertaking.
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There are many reasons why every company should have a business plan , but not every business needs a formal plan to show to outsiders. If your plan is just for yourself and your team, then you may be fine with just the lean business plan. However, if you do need to develop a plan to show to investors, banks, lawyers, and so forth, you can follow this simple business plan outline and decide on how in-depth or concise your business plan needs to be.
3-Year Business Plan
Your Year Strategic Plan can be viewed as a base camp on the way to the summit of your long term goal. This can be used as a tool to align your company around a common purpose and closes the strategy execution gap. Typically, you will determine your year strategic business plan as part of your Annual Planning session , which will include your goals and objective for the year as well as outlining opportunities and threats facing your company. We also have a great blog post on how to facilitate a strategic planning session to get the return on investment from your planning session. We also have a great virtual strategic planning post that provides great tips on running a virtual planning session. Examples of the types of Targets and KPI dashboards you will want to consider include the following:.
Preparing a Three Year Business Plan
Every business needs to have a written business plan. But, how do you write a business plan? However, getting started may be difficult to do. Read everything you can about your industry and talk to your audience. However, your profile can be used to describe your company in your business plan. Investors want to make sure that your business is going to make them money. Because of this expectation, investors want to know everything about your business. A great business plan will always include a strategic and aggressive marketing plan. This typically includes achieving marketing objectives such as:. In the implementation section, you focus on the practical, sweat-and-calluses areas of who, where, when and how.
A three-year business plan gives a business a road map for what it needs to accomplish and includes its goals and objectives, financial summary and mission statement.
I often find that at the end of the year my sense of perspective is heightened and I generally feel a lot more motivated and excited about the future. Part of this feeling comes from knowing that a new year is just around the corner, which means a fresh start at tackling any personal or business-related challenges. As it turns out, there is a very effective strategy for setting and hitting your growth goals, and by following this strategy you can accurately predict what is possible to accomplish.
7 Steps to a Perfectly Written Business Plan
Think you have a great idea for a business? The simple business plan template presented here will get you started. A standard business plan consists of a single document divided into several sections including a description of the organization, the market research , competitive analysis , sales strategies , capital and labor requirements, and financial data. The resulting document can serve as the blueprint for your business and be supplied to financial institutions or investors if debt or equity financing is needed to get your business off the ground. There is still going to be a lot of work involved. For instance, not only do you have to complete the financial spreadsheets, but you have to do the math yourself. Finally, merging data from Excel spreadsheets into your Word document is harder than it looks. A corporate business plan for a large organization can be hundreds of pages long. However, for a small business, it's best to keep the plan short and concise, especially if you intend to submit it to bankers or investors. Capping your plan at 30 pages should be sufficient unless you need to include photos of products, equipment, logos , business premises or site plans, etc. Once you complete your simple business plan be sure to format it attractively, print it and get it professionally bound. You want your business plan to convey the best possible physical impression; make it something people are going to want to pick up and look at. Enter your business information including the legal name, address, etc.
Write a business plan
Last Updated on December 27, by Richard Kershaw. In its rawest and simplest of forms, a business plan is a guide; a roadmap of sorts that allows entrepreneurs to clearly outline their business goals and how they intend to achieve them. When you think about it that way, you will quickly realize that every entrepreneur has a business plan in one form or another. The problem often comes when people start thinking of a business plan as a long, boring, academic-type document that can only be written and used by Ivy League graduates who truly understand corporate mumbo-jumbo. Yes, technically, a traditional business plan has a strict set of rules and a template to follow. That, however, does not mean that you are doomed to fail if you cannot clearly articulate what your cash flow statement is in the financial plan section. The best types of business plans are dynamic. They change with time as you get to learn the market, your own business, and indeed, your very self.
