Crafting a solid business plan is the foundation of any successful venture. Whether you're just starting out or looking to refine your strategy, understanding the components can make all the difference. Here are the key parts of a business plan you should focus on:
1. Executive Summary
The first section should be a concise overview of your business plan. It should be short, and must be well written. Your goal is to draw readers in so they want to learn more about your company.
Though this section appears first, consider writing it last, after you've worked out the details of your plan and can summarize your thoughts succinctly and accurately.
The executive summary for a business plan should include:
Your business name and location
Products and/or services offered
Mission and vision statements
The purpose of the plan (to secure investors, get debt, etc.)
2. Company Description
This high-level view of your business should explain who you are, how you operate and what your goals are.
The company description should feature:
The legal structure of your business (corporation, sole proprietorship, etc.)
A brief history, the nature of your business, and demands you plan to supply
An overview of your products/services, customers, and suppliers
A summary of company growth, including financial or market highlights
A summary of your short- and long-term business goals, and how you plan to earn a profit
3. Products and Services
Clearly describe what you’re selling, with a focus on customer benefits.
Include details about suppliers, product or service costs, and the net revenue expected from the sale of those products or services. Consider adding charts or graphs.
In general, this section should include:
A detailed description of your product/service that emphasizes customer benefits
An explanation of the market role of your product/service and advantages it has over competitors
Information about the product/service's life cycle
Relevant Intellectual Property
R&D activities
4. Market analysis:
Show your industry knowledge, and present conclusions based on detailed market research.
Your market analysis should include:
Targeted customer segments, including size and demographics of each group
An industry description and outlook
Historical, current and projected marketing data for your product/services
An evaluation of your competitors, highlighting their strengths and weaknesses
5. Strategy and Implementation:
Summarize your sales and marketing strategy, and how you’ll implement them with an operating plan.
This section should include:
An explanation of how you’ll promote your business to customers and enter the market
Details about costs, pricing, promotions, and distribution/logistics
An explanation of how the company will function, including the operations cycle
Information on sources of labor and number of employees
Information on operating hours and facilities
6. Organization and Management Team:
Outline your company's organizational structure. Identify the owners, management team and board of directors.
Include the following:
An organizational chart with descriptions of departments and key employees
Information about owners, including their names, percentage of ownership, extent of involvement within the company and a list of their background
Profiles of your management team, including their names, positions, main responsibilities and past experience
List of any advisors, such as board members, accountants, and attorneys
7. Financial plan and projections:
This last section of your business plan should be developed with a professional accountant after you've completed a market analysis and set goals for your company.
Some of the important financial statements that should be part of your plan include:
Historical financial data, including income statements, balance sheets and cash flow statements for the past three to five years
Realistic prospective financial information, including forecasted income statements, balance sheets, cash flow statements and capital expenditure budgets for the next two to five years (depending on is requiring the plan)
A brief analysis of your financial data, featuring a ratio and trend analysis for all financial statements
Following this template will help ensure a successful fundraise. It is important to remember a business plan is a living document and should be updated on a regular basis to align with Company goals and performance. If you need help preparing a business plan for your business, reach out to Bubble Rock Advisors, and we will guide you through the process.
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