In the face of uncertainty, there was a record increase in applications for new businesses in 2020. According to an analysis of U.S. Census Bureau data by The Wall Street Journal, new applications for an employer ID reached 1.1 million through mid-September, a 12% increase over the same period in 2019 and the most for the past 13 years.
COVID-19 exposed the strengths and weaknesses of many companies. Whether you are starting a business, seeking to grow your company, or in need of additional capital, a well-written business plan is a critical tool to helping you achieve your goals in 2021.
However, before you take pen to paper, while you might understand your business… will others? Your business plan should help others understand your business more thoroughly. To gain a solid understanding, follow these 5 tips when writing your business plan.
What does your business have to offer? The goal here is to not only shape your own objectives, but to help investors and your financial institution understand why your business concept is beneficial.
Take a snapshot of your ideal customer. Who are they? Why do people need your solution? Answering these questions will show the reach and potential for future growth of your enterprise.
Your business model should detail your revenue sources, client base, the products and services you offer, and financial details. Be sure to address your unique selling proposition for any potential investors.
Readers will want to know that you’ve taken your competition seriously. Who are your competitors today and tomorrow? What’s your game plan to beat your competition? Don’t be a generalist and say, “we don’t have competition” or that “everyone is a competitor.” Really dig deep into what others are doing and how your solution is better.
A strong business plan includes a realistic summary of current and projected financials for your business, including costs and sales predictions. You’ll also want to address the expected time frame for breaking even so investors can understand how many sales you’ll need before you cover your costs.
There are many businesses in the Northwoods that are seizing the opportunity to better position themselves for success in 2021. At Park City Credit Union, we stand ready to help your organization rise to the occasion. From checking to savings to loans, look no further. We have what your business needs.
Have you heard of our Business Challenge? Tell us how much you currently pay in banking fees at another institution and let us show you how much you can save at Park City Credit Union.
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