Writing a Business Plan

Exit Strategy: An investor’s commitment of capital hinges upon their ability to recoup their initial investment and a healthy profit. When deciding upon an exit strategy, be sure to take into account your industry, business life cycle, competitive environment and management needs.

Once the plan is completed, review it carefully to ensure it clearly and concisely describes your operation. Too many business plan writers make the incorrect assumption that the reader is as familiar with their business as they are. Unfortunately, this assumption leads to a quick and final no from lenders and investors. Instead, define and describe your business for someone who knows nothing about your industry. When describing the natural products industry, make sure to explain to the investor in a clear and understandable text, instead of using industry jargon. Be sure to include the features and benefits of your plan. Tell the reader what need it fills, why it is better, faster, and cheaper, or how it can improve their life.

Sidebar:
What to Detail in an Executive Summary
-The company’s origin;
-The product or service and its uniqueness or competitive advantage;
-The company’s goals;
-The market potential for the product or service;
-A three- to five-year summary of key financial forecasts, especially sales and profit/loss. For a new business, do some market research and make realistic assumptions about how your business can compete;
-The management team and its track record;
-The financing required to grow the business; and
-The exit strategy.

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