Connect with us

Business

The Importance of Concise Business Plan and Draw-Down Schedule

Published

on

The Importance of Concise Business Plan and Draw-Down Schedule

Each business concept contains great ideas or elements in them. Sadly, great ideas aren’t enough to produce great business. I’ve seen hundreds of great ideas, but some of these great ideas eventually lead to creating a new business because many “potential ” business owners don’t have the experience or the expertise to manage their great concepts into cash-rich companies successfully. Lead and develop your business concept that will surely grab the attention of your potential customers. Search, identify and consult all professionals essential to your business project (lawyers, accountants,  engineers, architects, builders, designers, and trades). You will now have a clear picture of what is involved in completing your project implementation.

The Importance of Concise Business Plan and Draw-Down Schedule

You have received competitive bids on the fees each profession should charge for their professional work, the different trades’ contributions, and the materials for each task and stage of the entire job. So, in the end, you put all this information along with your project manager’s schedule plan. Now you can set each task, stage, and associated costs in a timeline format.

Thus, the draw schedule brings together each activity, the cost of that activity or phase, and the time the work needs to be done. These are the three elements of a collection schedule.

When this is all done, you can now quantify the withdrawal schedule, in which you have to pay each contractor or professional in completing their stages of your project, respectively.

 

Suggested Article

The Beauty of Digital Transformation in your Business Amidst Pandemic

The Beauty of Digital Transformation in your Business Amidst Pandemic

 

How do you do the formatting scheme?

Craft a schedule with markers at regular intervals and specifically indicate each month of the project’s implementation phase—the first month of project implementation as month 1, etc. If you are experiencing startup delays, you don’t need to rewrite the spreadsheet because this will stir up problems.

Find each part of your project on this timeline, show when each element of the task should start and when it should be finished. And true enough, you may find this quite complicated. If you do this on paper, it may take a few tries to complete. It will depend on the complexity of the project implementation.

If you save the timeline on a computer, you might have to re-order the information several times to get everything organized. Now draw on this chronological axis, a place for the spending for each component of the work. When this is done for each part of the project, you have a value of $$ for the amount needed to pay for all the work. Be sure to include the costs of accessing investment finance, commissions payable, etc.

The Importance of Concise Business Plan and Draw-Down Schedule

 

Additionally, you have to allocate the amount of capital that you and your fellow shareholders hold in the beginning. You will be able to determine when you need access to an investor’s funds to continue the project’s development program.

Your “withdrawal schedule” is now complete. This is an essential piece of information that you must provide us with when preparing your winning business plan. Your detailed and specific work will tell the investor that you understand the detailed schedule of all dimensions of the project and have carefully prepared for your new business’s implementation stages.

Because a high-quality business plan not only sells your investment opportunity to an investor, it also demonstrates your competence. The investor values your competence and readiness, as well as the profitability or impact of the project.

 

Lastly, make sure you bring in great professionals to make sure your great idea turns into a new successful business in every way possible!

 

 

Read more Business related stories in The Weekly Trends magazine.

Becka Wright is a freelance writer whose main interests are topics related to business, technology, and travel. This is brought about by her passion for going around the world, meeting people from all walks of life, and bringing along with her the latest tech to enhance her adventures.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Support Us!

Write for Us

The Weekly Trends

The Weekly Trends

Facebook

Trending