What Goes Into a Business Plan?
A business plan is an essential document for any enterprise. If you intend to apply for a loan, you will be required to write, and probably rewrite, one. Even if you don't need it for a funding agency, any smart business that's going to succeed writes down its key goals and strategy.
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Executive Summary
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Your business plan will necessarily be very detailed and take in lots of different elements, so it's important to synthesize these into a short, effective statement at the start of the plan. The executive summary will give outside agencies such as banks the big picture about your business in as short a time as possible. Although this appears at the start of your plan, you will write it last, after the other elements are complete.
Market Analysis
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Any good business knows its competition. Your market analysis will take a look at the wider industry in which you operate. Describe briefly the history of your business segment and include any industry projections of change and growth. This section will also take a look at who you are selling your goods or services to -- your target market -- and should include results from any market testing you have carried out.
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Company Description
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This section gives an overview of your business. You'll go into detail in the following sections, so what's needed here is to encapsulate who you are and what you do so that the reader has a clear picture of your business at a fairly high level. Include any competitive advantage you believe your business has.
Organization
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Give details in this section of how your company is owned and organized. Outline the structure of the management team and provide brief profiles of team members' history and experience.
Product
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Detail here exactly what service or goods your company provides or makes. What makes it different from what others are offering? You should outline this from a customer-focused perspective, taking a close look at the benefits of your company's approach. Also include details of any research and development efforts you're involved in.
Marketing
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This is where you will detail your marketing strategy and name the key staff in charge of putting it into action. You should be looking to the future in this marketing segment, outlining how you intend to grow your sales and your company.
Financials
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This is where your plan should give specific details of your company's funding, debt sources and cash flow. If you have an established history, you should include income statements, balance sheets and cash flow statements for the previous three years. You will also need to provide income forecasts and balance sheets for the next five years. If you are seeking a loan, detail in this section any collateral you can provide for the funding.
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References
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