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Buying an Existing Business – 7 Steps to Success

Business Plan Objective

❶If your business is already established, past annual balance sheets and income statements should also be included. Make sure that your advertising, publicity, and promotional programs sound realistic based on your proposed marketing budget.

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Think about your role as leader or boss of the business. As you think about hiring personnel and organizing your workforce, you must also confront your desire and ability to be a good boss.

Decide how you will handle your employees' entitlements. For example, salaries and wages, their insurance and retirement benefits, as well as analyzing the extent of your knowledge of tax related issues.

Do you need to bring in experienced managers right away? Will you keep some of the existing employees or hire all new people? And where do you find these potential employees? Funding sources will also want to know if any of your partners expect to work alongside you or if their obligations are only financial. Your plan will need to specify the key management jobs and roles. Positions such as president, vice presidents, chief financial officer, and managers of departments will need to be defined along with stating who reports to whom.

Decide on a marketing plan. Consider how will you reach your customers. What will you say to persuade and convince customers that your product or service is better value, more timely, more useful, etc. If it currently has no rival, how will you properly explain the purpose of and the consumer's need for the product? What advertising and promotional efforts will you employ? For example, two for the price of one specials or free coupons inside those same kid-oriented cereal boxes?

Where can you locate lists of the greatest concentrations of children under the age of eight or whatever group constitutes your market? Build a dynamic sales effort.

In a nutshell, this part of your business plan is about how you will attract customers or clients for your product or services. What will your basic sales philosophy be? Building long-term relationships with a few major clients or developing a clientele of many short-term customers? Organize all the relevant information about your business. Begin creating section headings and putting the appropriate information under the appropriate headings. Title Page and Table of Contents Executive Summary , in which you summarize your vision for the company General Company Description , in which you provide an overview of your company and the service it provides to its market Products and Services , in which you describe, in detail, your unique product or service Marketing Plan , in which you describe how you'll bring your product to its consumers Operational Plan , in which you describe how the business will be operated on a day-to-day basis Management and Organization , in which you describe the structure of your organization and the philosophy that governs it Financial Plan , in which you illustrate your working model for finances and your need from investors.

Write the executive summary last. The executive summary is basically your big appeal to investors, or really anyone who reads your business plan, that should summarize and articulate what it is that's great about your business model and product.

It should be less about the nitty-gritty details of operations and more about your grand vision for the company and where it is headed. Gather all the information together and prepare multiple drafts. You've done all of the hard work researching, deciding what your business is about, targeting it accurately and selling it.

It's time to put the business plan together and articulate all your thinking, research, and hard work into a comprehensive description of your structure and service. At first, do not worry about capitalization, punctuation, and grammar. All you need to worry about is putting your ideas down on paper. Once you have a general form, you can spend time proofreading your plan and correcting mistakes.

Have someone else read over it for you and take heed of their comments. Sell yourself and your business. The idea of the business plan is to present yourself in the best light. The talents, experience and enthusiasm you bring to your enterprise are unique. They provide some of the most compelling reasons for others to finance your concept.

Keep in mind that investors invest in people more than ideas. Even if your potential business has many competitors or is not on the cutting edge of an industry, the qualifications and commitment you demonstrate in your plan can convince others to proffer their support.

Focus on group experiences, leadership opportunities, and successes at all levels. Present and explain your financial data. How will you convince others to invest in your endeavor? By having clear, transparent and realistic financial information that shows you know what you're talking about and that you're not hiding anything. The accuracy of your financial figures and projections is absolutely critical in convincing investors, loan sources, and partners that your business concept is worthy of support.

The data must also be scrupulously honest and extremely clear. Since banks and many other funding sources will compare your projections to industry averages in the R. A data, in the United States you can use the R.

A figures to test your projections before the bank does. Sample Small Business Business Plan. Specify the product, source of it, and people in need of the product. List capital, handy or loan. List whether you have sales reps, your availability for outreach on demand, and your source of mobility. Not Helpful 4 Helpful Is it important to write a business plan for a small business even if financial support is not really needed? Yes, since you are running a business, you need a plan that keeps you focused on what's important to you.

You can also review it once a year to see how much you and your business needs have changed. Not Helpful 17 Helpful Discuss how you will secure financing, showing details on sales projections, costs, etc. Not Helpful 18 Helpful The same way you would write it for anything else.

Just follow the steps in the article. A little different or not. Answer this question Flag as How do I write a business plan about a company which deals in technology? If I want to go into business selling tap water, what would be a good way to approach the business plan? How can I write business plan for avocado supply?

Include your email address to get a message when this question is answered. Already answered Not a question Bad question Other. Quick Summary To write a business plan, start with an executive summary that lays out your grand vision for your business.

Did this summary help you? Tips Many sources exist for finding information for your business plan. Your local library and the internet are always helpful sources. Refer to your own business data and analysis to complete your primary analysis. Provide detailed information, including statistics and sources, to support your findings and strategies.

Identify and explain the demographics of your target market. Explain the features and benefits of your products, as well as why these features and benefits appeal to your target market. Identify your business competitive advantages and disadvantages and explain the strategies that your business will use to compete against the competition.

Explain the advertisement methods that your business will use to capture its target market. Define the strategies that your business will use to retain its customers, as well as generate referral business. Include price points and expenses that will generate from these strategies. Include information on the expenses that pertain to each, such as mortgage or lease payments, utilities and equipment warranties. Provide details about your business legal requirements, such as permits, zoning compliances and environmental regulations.

Explain how your business completes its operations, maintains quality, controls inventory, develop products and services customers. List the responsibilities and functions of your executive and senior employees.

List the number of employees that your company maintains and identify each department. Create an organizational chart for an easy visual reference. Wholesalers should discuss warehouse operations. In addition to discussing areas that are critical to operations, briefly summarize how major business functions will be carried out and how certain functions may run more effectively than those of your competitors.

The focus here is key people and positions. Primary attention should be on key people who have already committed to joining the firm. Elaborate on their relevant past experience and successes and explain what areas of responsibility they will have in the new company. Resumes should be included here as part of an appendix or exhibits addendum at the end of the plan. If members will have an active role in running the business, elaborate that role here.

If consultants have been engaged for key responsibilities, include a description of their backgrounds and functions. Fill as many of your key positions as possible before you seek funding. Many financiers reject plans if the management team is incomplete. Both debt and equity lenders will want to know how they can expect to receive their investment back and realize interest or profit from the company. Most private investors and venture capitalists will want to be able to exercise a cash-out option within five years.

They will be concerned that, even if the company becomes highly profitable, it may be difficult for them to sell out their share at an attractive price. This concern is particularly true in the case of minority stakeholders. This is why you must provide an exit strategy for investors.

Ideally, investors hope a firm will become so successful that it will be able to go public within five years and their shares will become highly liquid investments, trading at a hefty multiple of earnings.

But, often, a more realistic goal is to make the company large and successful enough to sell to a larger firm. State what your exit plan is and make sure it seems realistic. Existing businesses should also show historical financial statements. How far into the future you need to project and the number of possible scenarios you can anticipate depend on the complexity of the business.

Three to five years for financial projections and three scenarios are typical for a start-up business seeking angel investors. Scenarios should be based on the most likely course your business will take, a weak scenario with sales coming in well under expectation, and a good scenario with projected sales well over expectation.

Pro forma income statements should show sales, cost of operations, and profits on both a monthly and an annual basis for each plan year. For all but the largest businesses, annual pro forma balance sheets are all that are necessary. Cash flow pro formas should be presented in both monthly and annual form. If your business is already established, past annual balance sheets and income statements should also be included.

Sample Business Plan Financials: Include information that will assist potential lenders in understanding your projections. Lenders will give as much credence to the assumptions your projections are based on as they will to the numbers themselves. This is a fairly quick run-through of the business plan development process, but even this short survey of the process shows it is not something that you can do well in only a few minutes. Part 1 of 7 - Swipe to Advance.

Part 2 of 7 - Swipe to Advance. Part 3 of 7 - Swipe to Advance. Part 4 of 7 - Swipe to Advance. Part 5 of 7 - Swipe to Advance. Part 6 of 7 - Swipe to Advance. Part 7 of 7 - Swipe to Advance. How to Be Your Own Publicist. Enhancing Your Search Engine Marketing. A Great Marketing Plan:


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Dec 12,  · As you plan for the business you purchase, you start by making an important choice: business plans can be either for startup new businesses or for already-existing and ongoing business. When you buy a business from somebody else, either option is acceptable/5(4).

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Perhaps the biggest advantage to buying over starting a business is the existing business's potential. You may see growth opportunities the current owner doesn't, or maybe you have a superior business plan. Business organization: Describe the form of business organization you will take and where the company will be located. Your business plan summary should short and easy to understand. Remember to keep your summary short and easy to understand.

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Buying a company that's already established may be quicker and easier than starting from scratch. However, you will need to put time and effort into finding the business that's right for you. Also, the costs involved in buying an existing business can be substantial and should not be underestimated. Buying a business is a big undertaking and getting a loan to buy a business can be the most complicated part. Banks set high standards that both you and the potential business .