Criteria for a Business Plan
A comprehensive business plan is critical to a new business or to an existing business seeking to expand. It is the document most frequently referred to by banks when making loan decisions and by organizations seeking to develop partnerships. The Small Business Administration recommends including certain criteria in a thorough business plan.
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Executive Summary
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The executive summary is considered the most critical part of your business plan. It contains important details about your company, such as the products and services you provide, how many people work at your company and when you started your business. The executive summary should also have a mission statement that sums up your company's goals and ideals.
Market Analysis
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The market analysis should discuss your industry and focus on how your company fits into that particular market. Specific information pertaining to your target market, the pricing of your goods and services, along with competitor information should be included in this section.
Organization and Management
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This section of your business plan should discuss your company's structure and ownership details. Profiles of your key personnel should also be included here. This information gives the reader a clear picture of how your company functions.
Products and Services
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The products or services your company provides should be included in this part of your business plan. Include details relative to copyrights and trademarks, and discuss the niche in the market your product addresses.
Financial Information
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Historical financial information of your company's performance, including your company's annual income and any collateral your company may own, should be included in this part of the business plan. If you are a new business, this section should contain a projection of the potential income of your business.
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