8 tips to explain your business plan to the client
Why do more than 50% of start-ups fail in their first year? We may have many answers; It is because of a lack of innovativeness and research, poor marketing, financial mismanagement, inability to understand customer needs, lack of adequate funds, etc. All these would happen since you don’t have a well-directed business plan.
When explaining the business plan to your client, try to mention your business’s financial goals and explain how you have planned to achieve them. A detailed plan will provide a road map for the next three to five years that you can share with partners, stakeholders, lenders, and potential investors. In addition, a visually appealing business plan PowerPoint Template will ease your job of transmitting your plan to your clients and others in its potential.
Let’s have a look at important things that must include when explaining the business plan to the client.
1. Executive summary
Try to write your executive summary last though it comes in first. The first page of the business plan outlines the mission and vision statement, a short note about products/services, operations, and leadership, and a detailed description of your financial goals. It should give an overview of the company because this is your elevator pitch that sets the first impression.
2. Company description
Company description should contain information like company name, address, business location, leadership profile, unique skills and talents of staff members, and the like. It also should have a short description of the business structure, such as partnership, proprietorship, LLP, or corporation. In addition, it will be more transparent if you include the percent ownership and involvement of each owner in the company. Lastly, it should consist of the history of the company and the nature of the business right now. All these help you to provide a compelling description to your readers.
3. Business goals
The third section of the business plan should spell out exactly what you want to achieve in the near and long term. This section will help your fundraising plans, including business loans, when you are in need. It will explain why you require funds, how they help your business growth, and how you plan to attain business targets. It also helps to explain how the loan or investment will grow your business.
4. Product and services
Next to the business goals, describe your product/service features. It should include the following things:
- A brief description of how your product/service works
- What are the competitive advantages
- Who are your target customers
- The pricing model of your product/service
- How your supply chain works
- Your sales strategy
- Your distribution strategy
- Order fulfillment strategy
You can also mention trademarks and patents associated with your product/service. Suppose you are going to start or have already begun an innovative business. In that case, people may need help understanding your business models, especially in IT-related products/services, so you add a detailed description of your new business model. It will help investors to know the full feature of your business.
5. Market analysis
Investors and lenders want to know what makes your product different from your competition. In this section, you can outline the market in terms of growth prospects, demographics, trends, structure, and sales potential. Then, based on market research, you can look at the industry landscape and determine where your business fits. Besides, a SWOT analysis report will add more precision to your competitive analysis.
6. Marketing and sales plan
In this section, you can explain lead generation strategies, marketing funnels, and market segmentation. You can also detail how you plan to attract customers to your product/services and how conversions become loyal customers. A brief overview of the marketing and sales plan may attract your investors and lender if it has novelty and innovation.
7. Financial summary
Like an executive summary, your clients may look curious to read your financial summary. You may have a little information to add if you are a new entrepreneur. But in the case of an existing business, you’ll want to include a balance sheet that lists the cash flow statement, assets and debts, and profit and loss. It enables the viewer to understand how income and expenditure meet one another. Here, adding statistical charts and graphs makes understanding your company’s financial position easy.
8. Financial projections
This section would turn into a crucial one when you are seeking investors. Here, you can summarize how you plan to generate profit or how you will make ROIs. To detail this, you should provide monthly or quarterly sales and profit estimates over at least three years with the current and future state estimates. You can use this section to obtain loans also.
Additionally, you can add a table of contents in the beginning if there are missed links in the above steps. Then, you can include additional materials and supporting information that couldn’t fit into this list. For example, licenses, permits, personal credit history, equipment leases, resumes of key employees, etc. The more information and thought you put into it, the more effective your plan is.