A business plan is a blueprint for your business, it provides a clear road map for your business idea.
Photo credit: Ketut
You might question what the point in writing a business plan is. If you want to avoid wasting time and money on a business idea, you need a solid blueprint for your business. That’s a where your business plan comes in. It provides a clear road map for your business idea. Many entrepreneurs develop one to help in deciding whether their idea can be implemented. These are the key points a business plan should have:
Executive Summary
This is the make or break of your business plan. Be brief and outline the company’s purpose and goals. Don’t hype the business rather clearly state the description of what you do, how you plan to do it and the estimated growth potential. It shouldn’t be more than one or two pages in length. Keep in mind that some investors only ask for your executive summary when deciding whether to work or invest in your business, so make it stand out.
Business Model
Explain what product or service your business offers and who it is intended for. Mention what makes your business different from the rest. To do this, frame the problem and how your business is offering a solution by filling the gap. If your product is still in the creation phase, describe how you’ll finalize it to a finished product.
Operation Management
Show an organizational chart of how your business is structured. Clarify who does what in your business and what their experience is. List any key hires you’ll need to make in future if you have less staff.
Marketing & Sales
This step may take longest to write. Get into details about specific market, market demand and your business’s role in that market. Mention target market size and growth by showing the data into how your target market makes purchases in the industry. Give an overview on how you plan to sell your product or service.
Financial Plan
Provide information on your financial plan and projections. Even if you don’t yet have any financial data from your company, you still need to include financial projections. You can use your past financial data or analysis on the industry. Don’t forget to indicate any funding needs your business has or will have in the future.
To start you can download a Business Template here.
