Do you have a great business idea? Have you researched the market and vetted the numbers to make sure it is viable? Now you need to know how to write a business plan. This article explains how to present a business plan. Each section is listed along with a brief explanation to assist you in organizing your information and ideas to help guide you through the process.
If you work through each section of this guide, you will create a complete, thorough, and well-designed business plan. You will then be able to send your plan to a financial institution to apply for a loan, or propose a request to potential investors to finance the capital for your business.
Business Plan Outline
1) Executive Summary
While this summary is what is visible first to the reader, it is written last. The executive summary does what it sounds like it does – summarizes the key elements of the overall business plan. Since this is the first thing financial institutions and investors look at, it is crucial that your report is clear, concise, and outstanding.
2) Business / Industry Overview
This is a report that covers an overview of the industry sector in which your business will participate, including industry trends, major industry players, and estimated industry sales. This section will also contain a summary of your business’ proposed position and role in the industry.
3) Market Analysis
The market analysis is an overview of the main target market for your product or service, including geographic location, demographics, the needs of your target market, and how these needs are currently being met. The purpose of this section is to show the reader that you have a certain level of knowledge regarding your target audience. You need to know details about the people to whom you plan to sell your products and services, so that you can make educated predictions about how many of your products and/or services they will buy.
4) Competitive Analysis
Investigate your direct and indirect competitors, assess their competitive advantage and analyze how you will overcome any barriers in your chosen market. In this part of the business plan, you need to differentiate your business from the competition, showing the readers of your plan how your company will be able to successfully compete.
5) Sales and Marketing Plan
This part of the plan provides a detailed explanation of your sales strategy, pricing plan, proposed advertising and promotional activities, and the benefits of the product or service. Here you will present the reader with a unique description of how you will utilize marketing tools and trends to convince people to buy your product or service.
6) Ownership and Management Plan
An overview of your company’s legal structure and management resources, including your internal management team, external management resources, and human resource needs is a necessary part of any great business plan. If the goal of your business plan is to get funding, it is wise to ensure that your management plan includes an advisory board as a management resource.
7) Operational Plan
Be sure to include a description of the physical location of your company, facilities and equipment, the types of employees required, inventory and supplier requirements, as well as any other applicable operational details including a description of the production process.
8) Financial Plan
Possibly the most detailed part of the business plan, this is a description of your financial requirements, copies of your detailed financial statements, and an analysis of the financial statement. This is the part of the business plan where you will present the three main financial documents of any business; a balance sheet, an income statement, and a cash flow statement. (In the case of a new business, this last document will be a cash flow projection.)
9) Contributions and Exhibitions
In addition to the sections above, at the end of your business plan you will also want to include any additional information that will help determine the credibility of your business idea, such as marketing studies, photos of your product, and copies of contracts or other legal agreements relating to your business.
Is the order of business plans important?
The order of these sections is flexible, as long as the executive summary, as an overview, must come first. In addition, it is logical that all market-related materials (industry overview, marketing analysis, competitive analysis, and marketing plan) come together.
In general, with your business plan, you want to “put your best foot forward”. So, if, for example, you have a stellar group of people serving on the advisory board of your new company, be sure to put that section right after the executive summary. Highlighting the strengths of your new business will encourage your readers to keep reading the plan and give you the best shot at getting the backing you need to proceed with launching and building your dream.
Give yourself plenty of time for editing your business plan. You will be sharing it with many people, it needs to be clear with specific details, give the plan to people you trust so that they can critique it. Subscribe for more business, sales and investing posts. Have a lovely day.
