President Donald Trump argues that new tariffs on $34
billion worth of Chinese goods are designed to protect US businesses and force
China to change its economic policy. But many industry groups say American
consumers are likely to bear the brunt of the trade fight.
While less than 1% of the goods subject to the tariffs
are consumer goods, the list of products targeted includes machinery that does
everything from cutting metal to measuring electrical currents to incubating
chickens. US businesses rely on these products to make their goods, which are
eventually sold to US consumers.
More expensive equipment and parts means US businesses
will see costs rise. In turn, they can pass on the increased costs to consumers
or shrink costs in other areas — for instance, by laying off workers. Most
experts say businesses are likely to use some combination of these two options.
So while the 25% tariffs, imposed Friday, may not
result in an immediate price hike at the checkout line,…
President Donald Trump argues that new tariffs on $34
billion worth of Chinese goods are designed to protect US businesses and force
China to change its economic policy. But many industry groups say American
consumers are likely to bear the brunt of the trade fight.
While less than 1% of the goods subject to the tariffs
are consumer goods, the list of products targeted includes machinery that does
everything from cutting metal to measuring electrical currents to incubating
chickens. US businesses rely on these products to make their goods, which are
eventually sold to US consumers.
More expensive equipment and parts means US businesses
will see costs rise. In turn, they can pass on the increased costs to consumers
or shrink costs in other areas – for instance, by laying off workers. Most
experts say businesses are likely to use some combination of these two options.
So while the 25% tariffs, imposed Friday, may not
result in an immediate price hike at the checkout line, many industry groups
warn that Americans will still see changes:
National
Retail Federation: “With tariffs against China taking effect, American
consumers are one step closer to feeling the full effects of a trade war,”
Matthew Shay, the federation’s president and CEO, said in a statement Thursday.
“These tariffs will do nothing to protect US jobs, but they will undermine the benefits
of tax reform and drive up prices for a wide range of products as diverse as
tool sets, batteries, remote controls, flash drives and thermostats.”
Consumer
Technology Association: “While President Trump says his trade policy is meant
to punish China, the numbers show that, in reality, US businesses, workers and
consumers will pay the price under this policy,” said Sage Chandler, the
group’s vice president for international trade. “Of the original $50 billion in
tariffs on China, items including lithium batteries, navigation devices, disk
drives and circuit board components will be affected – hitting $15.2 billion
worth of Chinese imports.”
North
American Food Equipment Manufacturers: The tariffs could even trickle down to
the cost of fast food, Charlie Souhrada, a vice president of the group, told
The Associated Press. While Trump’s duties do not apply to food products,
Souhrada said the NAFEM member Henny Penny expected the tariffs to increase the
price of its pressure cookers, which are in turn used by chains like
Chick-fil-A to make food.
National
Association for Manufacturers: “Tariffs will bring retaliation and possibly
more tariffs,” said Jay Timmons, the association’s president and CEO. “No one
wins in a trade war, and it is America’s manufacturing workers and working
families who will bear the brunt of continued tariffs. Manufacturers in the
United States succeed when the rules are clear and fair and markets are open.”
While Friday’s tariffs are likely to hit US consumers
eventually, Trump’s threat to impose tariffs on another $200 billion worth of
Chinese exports to the US could result in more direct pain for them.
Not just consumers facing pain
US consumers may eventually see higher prices on
shelves, but there’s a second negative trickle-down effect. Many businesses
count China as a major export destination, and the retaliatory tariffs imposed
by the Chinese government on US products could similarly increase prices in
China and hurt sales.
For instance, China’s 25% retaliatory duty on whiskey
could harm US producers, according to the Distilled Spirits Council.
“Imposing 25 percent tariffs on US whiskeys could put
the brakes on an American export success story,” Christine LoCascio, a senior
vice president for international trade at the council, said in a statement.
“American spirits exports to China have grown by almost 1,200 percent, from
$959,000 in 2001 to $12.8 million in 2017.”
Distillers are worried that retaliatory tariffs – not
only from China, but from Europe and Canada as well – could stunt their sales
and slow expansion and hiring plans.
Source : Trendingstock
How to write a Business Plan
This
article is part of both our Business Startup Guide and our Business Planning
Guide—curated lists of our articles that will get you up and running in no
time!
If
you’ve reviewed what a business plan is, and why you need one to start and grow
your business, then it’s time to dig into the process of actually writing a
business plan.
In
this step-by-step guide, I’ll take you through every stage of writing a
business plan that will actually help you achieve your goals. If you’re just
looking for a downloadable template to get you started, you can skip ahead and
download it now. Or, if you just want to see what a completed business plan
looks like, check out our library of over 500 free sample business plans.
3 rules for writing a business plan:
1. Keep it short.
Business plans should be short and
concise.
The reasoning for that is twofold:
First, you want your business plan to be
read (and no one is going to read a 100-page or even 40-page business plan).
Second, your business plan should be a tool
you use to run and grow your business, something you continue to use and refine
over time. An excessively long business plan is a huge hassle to deal with and
guarantees that your plan will be relegated to a desk drawer, never to be seen
again.
2. Know your audience.
Write
your plan using language that your audience will understand.
For
example, if your company is developing a complex scientific process, but your
prospective investors aren’t scientists (and don’t understand all the detailed
scientific terminology you want to use), you need to adapt.
Instead of this:
“Our
patent-pending technology is a one-connection add-on to existing bCPAP setups.
When attached to a bCPAP setup, our product provides non-invasive dual pressure
ventilation.”
Write
this:
“Our
patent-pending product is a no power, easy-to-use device that replaces
traditional ventilator machines used in hospitals at 1/100th the cost.”
Accommodate
your investors, and keep explanations of your product simple and direct, using
terms that everyone can understand. You can always use the appendix of your
plan to provide more specific details.
3. Don’t be intimidated.
The
vast majority of business owners and entrepreneurs aren’t business experts.
Just like you, they’re learning as they go and don’t have degrees in business.
Writing
a business plan may seem like a difficult hurdle, but it doesn’t have to be. If
you know your business and are passionate about it, writing a business plan and
then leveraging your plan for growth will be not nearly as challenging as you
think.
And,
you don’t have to start with a full, detailed business plan that I’m going to
describe here. In fact, it can be much easier to start with a simple, one-page
business plan—what we call a Lean Plan—and then come back and build a detailed
business plan later.
6 things to include in a business
plan
Now
that we have the rules of writing a business plan out of the way, let’s dive
into the details of building your plan.
The
rest of this article will provide the specifics of what you should include in
your business plan, what you should skip, the critical components of the
all-important financial projections, and links to additional resources that can
help jump-start your plan.
Remember,
your business plan is a tool to help you build a better business, not just a
homework assignment. Good business plans are living documents that you return
to on a regular basis and update as you learn more about your customers, sales
and marketing tactics that work (and don’t), and what you got right and wrong
about your budget and forecast. Your plan sets out the goals you’d like to
achieve and you should use it to track your progress and adjust course as you
go.
1. Executive summary
This
is an overview of your business and your plans. It comes first in your plan and
is ideally only one to two pages. Most people write it last, though.
2. Opportunity
This
section answers these questions: What are you actually selling and how are you
solving a problem (or “need”) for your market? Who is your target market and
competition?
3. Execution
How
are you going to take your opportunity and turn it into a business? This
section will cover your marketing and sales plan, operations, and how you’re
going to measure success.
4. Team and company
Investors
look for great teams in addition to great ideas. Use this chapter to describe
your current team and who you need to hire. You will also provide a quick
overview of your legal structure, location, and history if you’re already up
and running.
5. Financial plan
Your
business plan isn’t complete without a financial forecast. We’ll tell you what
to include in your financial plan.
6. Appendix
If
you need more space for product images or additional information, use the
appendix for those details.
Let’s
dive into the details of each section of your business plan and focus on
building one that your investors and lenders will want to read.
Executive summary
The
executive summary introduces your company, explains what you do, and lays out
what you’re looking for from your readers. Structurally, it is the first
chapter of your business plan. And while it’s the first thing that people will
read, I generally advise that you write it last. Why? Because once you know the
details of your business inside and out, you will be better prepared to write
your executive summary. After all, this section is a summary of everything
else, so start writing the Opportunity section first and come back here last.
Ideally,
the executive summary can act as a stand-alone document that covers the
highlights of your detailed plan. In fact, it’s very common for investors to
ask for only the executive summary when they are evaluating your business. If
they like what they see in the executive summary, they’ll often follow up with
a request for a complete plan, a pitch presentation, and other data about your
business.
Because
your executive summary is such a critical component of your business plan,
you’ll want to make sure that it’s as clear and concise as possible. Cover the
key highlights of your business, but don’t into too much detail. Ideally, your
executive summary will be one to two pages at most, designed to be a quick read
that sparks interest and makes your investors feel eager to hear more.
The
critical components of a winning executive summary:
One
sentence business overview
At
the top of the page, right under your business name, include a one-sentence
overview of your business that sums up the essence of what you are doing.
This
can be a tagline, but is often more effective if the sentence describes what
your company actually does. This is also known as your value proposition.
Problem
Summarize
in one or two sentences the problem you are solving in the market. Every
business is solving a problem for its customers and filling a need in the
market.
Solution
This
is your product or service. How are you addressing the problem you have
identified in the market?
Target market
Who is your ideal customer? How many
of them are there? It’s important here to be specific.
If
you’re a shoe company, you aren’t targeting “everyone” just because everyone
has feet. You’re most likely targeting a specific market segment such as
“style-conscious men” or “runners.” This will make it much easier for you to
target your marketing and sales efforts and attract the kinds of customers that
are most likely to buy from you.
Competition
How
is your target market solving their problem today? Are there alternatives or
substitutes in the market?
Every
business has some form of competition and it’s critical to provide an overview
in your executive summary.
Team
Provide
a brief overview of your team and a short explanation of why you and your team
are the right people to take your idea to market.
Investors
put an enormous amount of weight on the team—even more than on the idea—because
even a great idea needs great execution in order to become a reality.
Financial summary
Highlight
the key aspects of your financial plan, ideally with a chart that shows your
planned sales, expenses, and profitability.
If
your business model (i.e., “how you make money”) needs additional explanation,
this is where you would do it.
Funding requirements
If
you are raising money to start or grow your business, you must include the
details of what you need in the executive summary.
Don’t
bother to include terms of a potential investment, as that will always be
negotiated later. Instead, just include a short statement indicating how much
money you need to raise to get your business off the ground.
Milestones and traction
The
last key element of an executive summary that investors will want to see is the
progress that you’ve made so far and future milestones that you intend to hit.
If you can show that your potential customers are already interested in—or
perhaps already buying—your product or service, this is great to highlight.
You
can skip the executive summary (or greatly reduce it in scope) if you are
writing an internal business plan that’s purely a strategic guide for your
company. In that case, you can dispense with details about the management team,
funding requirements, and traction, and instead treat the executive summary as
an overview of the strategic direction of the company, to ensure that all team
members are on the same page.
Executive summary
