That has expansion as one of the objectives within the first 3 years to include the expansion locations in the financial forcasting or keep the plan to the start up location. I figured it would make more sense to keep it to the start up location and develop seperate plans because it would just make the plan for the start up location more accurate instead of it containing a lot of guess work.
2006-09-10 16:48:01 · 5 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
O.K. thank you @. You went on and on to BS and reiterate my point like I didn't just say the same thing.
2006-09-10 17:06:25 · update #1
You are on the right track thinking that you need separate business plans for your startup and another business plan for expansion. Keep the focus on your initial plan for startup because expansion requires a whole set of different factors such as whether the business is profitable already to warrant an expansion.
Keeping the two separate is especially crucial if you will present your business plan to investors. According to the book “The ABC's of Writing Winning Business Plans: How to Prepare a Business Plan That Others Will Want to Read -- and Invest In” http://www.amazon.com/exec/obidos/ASIN/0446694150/powerhomebizguid by Garrett Sutton, below are some tips to make a winning business plan that can get funding:
- Money follows management. Investors look first at the people involved in the company. If you are just starting out and don’t have relevant experience, investors expect to see that you have an experienced team of advisors and employees helping you in the business.
- Make sure you “sell” the one reason your business will become profitable.
- State clearly the strategies you will employ to get the word out about your business. Your business plan must show how you will leverage the Internet, public relations, viral marketing, and other strategies to attract customers.
- Present realistic estimates of the time, energy and costs of building a successful business. Do not underestimate or overestimate revenues. While investors know your numbers are simply guesses, they want to see that your numbers are within the “range of reality.” Be careful of your financial statements: this is one area where you can easily lose credibility if presented poorly.
- Benchmark similar companies to show that you’ve done your homework and researched the market.
- Your Executive Summary is your calling card. If it is not a winner, investors may not even read your entire plan. Emphasize your own as well as your team’s track record in the Executive Summary.
- Before sending your business plan to lenders and investors, send it out first to a few in order to get feedback. You’d want to correct your plan if someone tells you that you’re way off mark, rather than have a potential investor tell it to you and lose the chance to get the funding you need.
2006-09-12 23:41:57 · answer #1 · answered by imisidro 7 · 13⤊ 0⤋
In general, it would be better to keep the plan simple not defining the locations. It would be another subject to debate, distracting from the main point.
And that is to convince them to put the money down for the first one.
Having said that, it depends of what you say on the plan.
For example, if you promise that you will open 10 new locations during the first year, it would not serious not to mention them, because there is no way that in the mess of a start up you conduct a proper selection of the sites. You have to have a program (not a plan) already defined, for the first year.
But if, in the other hand, you establish that you will wait a couple of years to see the performance and only after that, in the third one, you will open new ones, you should not mention them.
Hope it was useful.
2006-09-10 23:05:37 · answer #2 · answered by oldmarketeer 3 · 0⤊ 0⤋
Even if you plan for early expansion, you will still have to rethink your objectives when the time comes. There are too many variables to consider when thinking of future expansion. Yoyu can forcast all day, but you're never going to account for major loss potential or devastating market change. But it's not over confident to plan for expansion. It's just presumptuous to map it out. Didn't you ever hear the saying, "Don't count your chickens before they hatch"? Well it definitely applies where you're guessing about how much business you'll do in one particular area. Probability isn't the only factor in considering risk. You have to consider the weight of the consequences. If the consequences of failure in planned expansion aren't too heavy to bear, then by all means, you'll make more money by preparing far ahead of time. But before you make that decision, you'll need to get a couple of stat majors and finance planners in the same room together to calculate the risk first.
By the way, if you need a good bull$hitter, I'm for hire.
Hell I don't know anything about Business. But it makes sense though, doesn't it?
2006-09-10 16:59:09 · answer #3 · answered by Rockstar 6 · 0⤊ 0⤋
You should focus on the start up location and refrence the other locations. You could always ask a score counselor for some free advice.
www.score.org
2006-09-10 16:55:23 · answer #4 · answered by No More Cubes 2 · 0⤊ 0⤋
Read some useful business tips and more on this site to help you with it
2006-09-10 16:49:24 · answer #5 · answered by Anonymous · 0⤊ 0⤋