It takes more than a great product and a great marketing plan to make a business successful. The company must also manage itself well. There are countless stories of businesses that had a great concept and even had great sales figures, but were brought down by poor management.
A business with poor administration is like a ship without a captain. It doesn’t matter what’s on board if it’s not going in the right direction. And because that direction often requires outside expertise and financing, a good business plan serves as the navigational chart for the voyage.
When that plan clearly and fully explains what the business expects to do, how it expects to do it, and what will result, it is a more compelling project for would-be funders and other backers.
For entrepreneurs working on a business plan to solicit some sort of assistance for their company, the administrative component needs to cover these key areas.
Show A Comprehensive Understanding
The first thing lenders and other potential stakeholders will want to know is that you understand all the various factors that are involved in the management of a manufacturing company. They frequently hear from entrepreneurs who think that they can simply scale up the processes they’ve been doing in their garage or basement and make the business larger.
That’s not at all accurate, of course, and you need to convey that information effectively. Make sure that you express how you plan to manage supply chains, train personnel, handle logistics, and address every other detail of manufacturing administration so that they can see you won’t just make a great product, but you’ll also be able to keep the company on track.
Enlist Expert Partners
Your business plan should express your awareness of options to work with other companies for improved efficiency. This could include unique arrangements such as the IMMEX program , which can help you become more profitable by integrating lower labor costs out of the country and avoiding tariffs.
Sometimes the best solution you can offer in your business plan is to say that you’ll work with established partners who can provide particular expertise for your operations. Be willing to work with contractors to handle things like payroll, tax withholding, and other complex human resources tasks so that you can streamline your front office and keep the focus on the final product.
In short, show potential stakeholders that you’re working with people who are experts in the areas of business administration that are not your expertise. Communicate that working with partners who can help with these ancillary functions can save you money and reduce errors.
Companies have an image, and if you present an image that reminds your readers of innovation, you’ll impress them. But there is a fine line to walk in this area. Partners want to see you doing things that haven’t been done before, they hope to see you create untapped markets, but they also don’t want you wandering so far off the beaten path that no one can find you. So your goal in your business plan should be to establish yourself as a forward-thinking company with innovative products and services, that is also rooted in sound financial and marketing basics.
Your business plan should be a well-written, carefully planned document that anticipates and responds to every question you think a would-be partner would ask. It should show the direction in which you want your company to go, how you plan to take it there, and why your strategy will work.
You shouldn’t neglect the administrative components because those are the things that make or break a company. When you communicate that effectively, you’ll land on the side of making it.