A business plan is a powerful tool, and as powerful tools go, it needs to be well made and perfectly calibrated to achieve the result you are aiming at. It should be succinct and have all the necessary information without being too long or cumbersome. It should be easy to use and understand.
To get this nontrivial balance of qualities, you will need a plan on how to build a plan, so to speak. A checklist of things to include that will make your plan impressive and convincing to the bankers, financiers or investors that you are going to approach.
A Clear Executive Summary
This is the most important part of your plan, making the project compelling right from the get-go to get your investor’s attention and engagement. It outlines the operation, highlighting the strengths and shows how your company offers something unique to the client. Here are the subsections that a good executive summary should include:
– Mission Statement. A succinct description of what the company is all about, its background and goals.
– Projections for Growth. This is where you quantify the financial possibilities of your future operation.
– The Product. The center of what you do, whether it is a physical product or service should look good.
– Financial Information. What is your current capital and assets and what you are looking for.
A Company Description
This is your time to elaborate about the company. Explain what the business is designed to do, what needs of the market it is supposed to address and in which way. Talk about where the company idea stems from and what the company values are.
Thorough Market Analysis
This section should include a detailed overview of the competition, the industry and the customers. If you are selling lamps, you need to talk about the needs of the potential clients that you intend to target with your specific product. Talk about how your company is different (and better) than similar businesses that exist in the market today. This should already have a mention of the pricing policy and competition strategies.
This section should be dedicated to the specific structure and operation of your company. The number of co-owners, employees and the division of responsibilities among them. The work relationship structure should be mentioned here, including incentives or promotions for performance and other related perks.
This is time to speak in detail about the goods you will be delivering. The specific benefits of your product or service, as well as the difference between it and the existing ones should be elaborated on here at some detail. For instance, if you are opening a hair salon but you will be the only hair salon in the area that is combined with a coffee shop, this is where you should mention it.
Marketing and Outreach
This section describes the ways you are going to attract your clientele and increase your business. It is a crucial part, since even the greatest idea won’t lift off without the proper marketing plan.
The entire business plan is shaping up toward this goal, this being what ensures that the investors collect their ROI. This is where you describe how the numbers add up and lead to profit. Balance your costs and gains to show that your company will be successful. If the numbers add up, everything else will follow suit.