A business plan is a very important and strategic tool for entrepreneurs where they focus on the specific steps necessary for them to make business ideas successful. The 11 key sections to include in your plan:
1. Cover Page
Include a cover page with your contact information so potential investors can easily reach you.
2. Executive Summary
In this section, describe what your business does and what market needs it solves. It is very important to describe your “unique success factors,” which are the 4-7 reasons why your business will be successful.
It’s important to include financial projections and the amount of money you are seeking to raise here. If investors don’t like your Executive Summary, they won’t read any further, so this section is critical.
3. Company Overview
In this section, give a profile of your company. Answer questions such as where you are located, when you were formed, and what is your legal entity form.
4. Industry Analysis
In the Industry Analysis section, you will detail the market in which you are competing, how large it is, and what trends are affecting it.
5. Customer Analysis
Here you will identify who your target customers are and their needs. Get as specific as you can with regards to the demographic and psychographic make-up of your customers.
6. Competitive Analysis
In this section, identify your competitors and their key strengths and weaknesses.
Importantly, identify your competitive advantages, that is, why you can be more successful than the others.
7. Marketing Plan
In this section, you will describe your products and/or services and your desired brand positioning.
Importantly, you will also detail your promotions plan, which is how you will get customers to know about your company (e.g., newspaper ads, direct mail, etc.).
Your distribution plan, which details where customers can purchase your products and/or services also belong in this section.
8. Operations Plan
Your operations plan should detail the key operational processes your organization needs to accomplish on a daily basis to achieve success. In addition, it should identify the milestones you need to accomplish over the next 1-3 years in order to achieve success.
9. Management Team
The Management Team section of the business plan provides the list of executives in the company and also mentions gaps in the team and who they need to hire.
10. Financial Plan
Your financial plan is critically important to investors. Identify the ways in which your company generates revenues. And highlight the key assumptions which govern your financial projections.
If you are seeking funding, identify how much money you need to start and/or run your business, and the primary uses of these funds. Finally, include a summary of your financial projections.
11. Appendix
Use the Appendix to support the rest of your business plan. Include your full financial projections, including your projected income statements, balance sheets and cash flow statements.
Include any additional details, such as patent information, customer lists, etc., that help prove to investors that your company is a great investment opportunity.
A business plan is a very important and strategic tool for entrepreneurs where they focus on the specific steps necessary for them to make business ideas successful. The 11 key sections to include in your plan:
1. Cover Page
Include a cover page with your contact information so potential investors can easily reach you.
2. Executive Summary
In this section, describe what your business does and what market needs it solves. It is very important to describe your “unique success factors,” which are the 4-7 reasons why your business will be successful.
It’s important to include financial projections and the amount of money you are seeking to raise here. If investors don’t like your Executive Summary, they won’t read any further, so this section is critical.
3. Company Overview
In this section, give a profile of your company. Answer questions such as where you are located, when you were formed, and what is your legal entity form.
4. Industry Analysis
In the Industry Analysis section, you will detail the market in which you are competing, how large it is, and what trends are affecting it.
5. Customer Analysis
Here you will identify who your target customers are and their needs. Get as specific as you can with regards to the demographic and psychographic make-up of your customers.
6. Competitive Analysis
In this section, identify your competitors and their key strengths and weaknesses.
Importantly, identify your competitive advantages, that is, why you can be more successful than the others.
7. Marketing Plan
In this section, you will describe your products and/or services and your desired brand positioning.
Importantly, you will also detail your promotions plan, which is how you will get customers to know about your company (e.g., newspaper ads, direct mail, etc.).
Your distribution plan, which details where customers can purchase your products and/or services also belong in this section.
8. Operations Plan
Your operations plan should detail the key operational processes your organization needs to accomplish on a daily basis to achieve success. In addition, it should identify the milestones you need to accomplish over the next 1-3 years in order to achieve success.
9. Management Team
The Management Team section of the business plan provides the list of executives in the company and also mentions gaps in the team and who they need to hire.
10. Financial Plan
Your financial plan is critically important to investors. Identify the ways in which your company generates revenues. And highlight the key assumptions which govern your financial projections.
If you are seeking funding, identify how much money you need to start and/or run your business, and the primary uses of these funds. Finally, include a summary of your financial projections.
11. Appendix
Use the Appendix to support the rest of your business plan. Include your full financial projections, including your projected income statements, balance sheets and cash flow statements.
Include any additional details, such as patent information, customer lists, etc., that help prove to investors that your company is a great investment opportunity.