The document outlines the 8 key sections of a typical business plan: 1) Executive Summary, 2) Business Description, 3) Products/Services, 4) Target Market, 5) Competitive Advantages, 6) Marketing Strategy, 7) Financial Projections, and 8) Management Team. Each section provides questions to answer and key information to include to thoroughly describe the business concept and plan.
The document outlines the 8 key sections of a typical business plan: 1) Executive Summary, 2) Business Description, 3) Products/Services, 4) Target Market, 5) Competitive Advantages, 6) Marketing Strategy, 7) Financial Projections, and 8) Management Team. Each section provides questions to answer and key information to include to thoroughly describe the business concept and plan.
The document outlines the 8 key sections of a typical business plan: 1) Executive Summary, 2) Business Description, 3) Products/Services, 4) Target Market, 5) Competitive Advantages, 6) Marketing Strategy, 7) Financial Projections, and 8) Management Team. Each section provides questions to answer and key information to include to thoroughly describe the business concept and plan.
The document outlines the 8 key sections of a typical business plan: 1) Executive Summary, 2) Business Description, 3) Products/Services, 4) Target Market, 5) Competitive Advantages, 6) Marketing Strategy, 7) Financial Projections, and 8) Management Team. Each section provides questions to answer and key information to include to thoroughly describe the business concept and plan.
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DIFFERENT PARTS OF A BUSINESS PLAN
I. The Executive Summary
The executive summary is the first paragraph investors read. If it doesn't grab the reader's interest, it will be the last paragraph they read. In just a few sentences, describe the business concept, its products and services, the competitive advantages and why the company will be incredibly successful. This opening should intrigue readers and make them want to read more.
II. Business Description
The description fills in the details outlined in your summary. It puts together the structure of the business and should include the following:
What is the name of the business?
Where is it located? What is the business structure: corporation, proprietorship or limited liability company? Why is this business unique? Why will it succeed? What factors will cause the business to grow?
III. Description of Products and Services
The descriptions should show why the products and services are innovative, unique and exciting. The reader should believe that you've really come up with an idea or concept that no one else has created. Use the following as an outline:
What are the products or services you plan to offer?
What are their features? What are their benefits? What makes these products and services unique? How do they meet the needs of your customers? How do they add value to the customers?
IV. Target Market
Your target market must be clearly defined. You need to show detailed thought about who your customers are and that you have identified their characteristics:
Who are the likely customers?
Are they male or female? What are their ages? Where do they live? How many customers are in your target market? Is the market growing, shrinking, or is it stable? What are the national and local trends that affect your industry?
V. Competitive Advantages In this section, you have to spell out how you intend to forge a share of the market against more established competitors. This can't be something like just working harder; it needs specific actions and steps that have a chance of succeeding and winning customers. Outline your competitive action plan with answers to these questions:
Who are your strongest competitors?
What are their strengths and weaknesses? How do they attract customers? Why do customers buy from them? Are your products price-competitive? Are your competitors' businesses increasing or decreasing? What will make your company different and better than your competition?
VI. Marketing Strategy
After you identify the weaknesses of your competitors, the marketing plan should describe how you plan to exploit those weaknesses.
How will you position your products against the competition?
Will you compete on price? Can you offer better customer service and quicker response times? Do you have a company logo and promotional theme? What sales tactics will you use? How will your products be distributed?
VII. Financial Projections
The objective of financial projections is to show that you have worked through the numbers and come up with a plan to make a profit. Great ideas are nice, but you need cash flow to start up a business and stay around long enough to gain market share.
What are the projections of sales and cash flow for the first year? What are the initial operating costs? How much do you need for personal expenses, and where will these funds come from? How will you finance the startup and growth of the business? Do you have a bank loan or line of credit? How long will it take to break even and have a positive cash flow? A word of caution: Take your sales projections for the first few years and cut that number in half. Recalculate your cash flow and profits based on the lowered sales estimates, because these figures will be closer to reality. If your business can survive with these lower projections, then you've done a good job of figuring out how to forge ahead and become successful.
VIII. Management Team
The real heart of any business is its people. Even the best ideas will fail if a company does not have skilled and aggressive employees. The management portion of the business plan needs to assure investors and lenders that you have a top-notch team lined up to work for your company. Sell your management team with answers to the following questions:
Who will manage the company and each of its departments?
What are the managers' experience and qualifications? How many employees are needed for full-time and part-time positions? What are the jobs and responsibilities of each employee? Will the company pay competitive wages and benefits? How will employees get training?
