9 Things Every Business Plan Needs
The thought of owning your own business can be exhilarating, but it is important to ground yourself with some smart planning. This is where creating a business plan comes in.
Basically, business plans are startup roadmaps that help companies remember long-term goals while moving forward. Before creating one, you should think carefully about what your business objectives are. Consider, for example, what your future company will look like. What will it achieve?
After thinking things through, it is time to begin your plan. Remember, it is not uncommon for these documents to be 20-pages long. Of course, they can be shorter, but the point is: You should prepare to include a lot of information.
1. Put Effort Into the Cover
First things first, your business plan needs a title page and a table of contents. If you have those, you are ready to move on to the rest of this list.
2. Summarize With the Executive Summary
Next, you need an executive summary. This is exactly what it sounds like: the main summary of what your business is all about. In this section, there should be a lot of focus on “what,” “why” and “how.”
3. Explain With a Business Description
After the summary comes the description. This is where you give background information about your industry. You also need to explain your company’s structure all the way down to the products.
4. Look Forward With a Marketing Plan
How is anyone going to know your business exists? The answer to this question is in your marketing strategy. Make sure to include one.
5. Compare Competitors With an Honest Analysis
Understanding who you are up against will help you stay competitive. Always keep one step ahead.
6. Be Transparent With a Design and Development Plan
What does the design and development of your product look like? It can be a good idea to include an outline of these processes.
7. Ensure Efficiency With Operations and Management Plan
In this part of your plan, you need to include two components: the organizational structure and the operation’s capital requirements. By doing this, you can set realistic expectations.
8. Consider Money With Financial Statements
One of the biggest factors with a business endeavor is finances. For this reason, you should be as specific as possible here. Be sure to include two to three years of financial statements to provide additional support.
9. Include Supporting Documentation
In addition to financial statements, you also need to include important documents like contracts, leases or other legal agreements.
Without a doubt, a business plan is essential to entrepreneurial success. For the best chances of success, be sure to use a checklist to make sure you include everything.
