Parts of a Business Plan
Key sections to include when you layout your business plan.
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The first step to writing a business plan is identifying the parts of a business plan that you need to include. Luckily, the business plan layout is fairly standard. Banks and investors have established standards for the types of information they’d like to see. In the end, it is important that you include all the parts that they need to make a decision as to whether or not the business has the potential to be successful in its market. Your business plan is not limited to these parts, but it should include all of them.
In almost every case, a business plan should start with an Executive Summary. This is one of the most important parts of your business plan. The executive summary gives an overview of the important points that will be covered in your proposal. If you feel it is imperative that the reader know something about your business, include it in the executive summary. Many will start by reading this section and then go to the body of your business plan for more details on information that catches their eye. Along with the executive summary, you’ll want to include Investment Considerations if you are seeking funding for your business.
The Company Description should define your company. Along with basic information, you’ll want to include information on the major shareholders and the products or services that the company offers.
After summarizing the company, your business plan should describe the environment in which it operates. Analyze the industry in your Industry Analysis and then analyze the Target Market and Competition. If you have already developed your marketing plan you can summarize the information from this plan in these sections.
Next, you’ll want to describe how your company will operate within its environment. Describe trends in the market and how you will position your company in relation to these trends in the Positioning Trends & Target Market section. You can also summarize your marketing plans in the Marketing Outline & Sales Strategy section. Again, it is helpful if you have already developed your marketing plan when writing this section.
After describing your marketing strategy, describe how your company will operate in the Operations section of your business plan. Include information on equipment, production, inventory, customer service, and any other operational issues that the company will face. Include a description of the technology that your company will use in the Technology Outline.
Investors will want to know who will be running the business. That’s why it’s very important that you include biographies of your management team in a Management & Organization section. Layout your organizational structure and who will be running the company.
Finish off your business plan with Milestones & Exit Strategies and the Financial Data & Projections. The Milestones & Exit Strategy section gives investors an idea of how you will evaluate you business and what you plan on doing with the business. The Financial Data & Projections usually includes an income statement, balance sheet, and statement of cash flows.
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