Objectives and Goals
This part outlines what your business plans to accomplish, as well as how and when it
will be done and who will do it. Sales forecasts as well as production, service, quality
assurance, and financial plans should be discussed. Other items of interest to potential
investors include pricing and anticipated profits, advertising and promotion strategies
and budgets, a description of how the product(s) will be distributed and sold, and which
Categories of customers will be targeted for initial heavy safes effort. and which ones
for later sales efforts.
Financial Data
One important purpose of the business plan is to indicate the expected financial results
from operations. The plan should show prospective investors or lenders why they should
provide funds, when they can expect a return, and what the expected rate of return on
their money is. At this point in the new business’s development, assumptions or educated guesses concerning many issues may have to be made. For example, assumptions
must be made about expected revenues, competitors’ actions, and future market conditions. Assumptions, while necessary. should be designated as such, and financial projections should be realistically based on how increased personnel, expanded facilities, or
equipment needs will affect the projections. The budgetary Process will be used is an
important part of the business plan. And prices should reflect actual cost figures, as the
following example illustrates.