Your business plan will ultimately make or break your business. It is an essential document that provides you with an understanding of what to expect in the future. It also proves your business idea’s validity and offers you a detailed look into your business’s financial standing. A robust, detailed business plan generally covers two to four years’ worth of business goals and objectives and helps you achieve them within a set time limit.
So, don’t think of a business plan as just a document that youshould revisit now and then. Instead, think of it as a guide that helps you make well-informed decisions, measure your business’s performance, and grow your brand. Creating a well-thought-out business plan is a complicated process. With that in mind, let us look at a few things that every business plan is incomplete without.
Typically, the first page of any effective business plan consists of an executive summary. Such a thing lays down an overview of the products and services you wish to sell and your business’s mission statement. In addition, the first page should also contain information like a short description of your business goals and how you plan on achieving them.
That said, if you want to learn how to write an executive summary, consider rolling into any business-related education like an online MBA management program. Doing so will enable you to gain necessary business-related knowledge and learn the ins and outs of an effective business plan.
The next most important thing that a business plan must contain is a preview of your business, meaning your business description. This part of your business plan consists of various details such as your company’s registered/official title, its nature, history, and detailed information about your products and services. Moreover, it should include the names of all stakeholders, partners, and essential officials involved in your business.
The next thing to include in your business plan is an objective statement that clearly defines your business objectives and a goal achievement strategy listing how you plan to achieve them. For instance, if you’re looking to onboard investors, you can utilize your objective statement to show potential investors your reasons behind acquiring financing. It will also give them an idea of how you intend to use their money and how you plan to achieve your goals within a set time limit.
In this part of your business plan, you will have to write down detail about your legal structure. For instance, this section will clearly show whether your business is registered as a partnership, corporation, LLC, or sole proprietorship. Furthermore, you will also have to write down details about critical managers, employees, and owners in this section of your business plan. Lastly, you must also mention the percentage or number of shares every partner or owner owns, if there are multiple, of course.
The next to include in your business plan is detailed information about the services and products your business wants to offer currently and in the future. It should consist of the following information:
Furthermore, this section of the business plan should also include information about any existing or pending patents and trademarks related to your products and services.
Next, your business plan should include an effective marketing and sales strategy. For instance, you can mention how you plan to market your products and services to your target market in this section. Or how you will ensure that your existing customers stay loyal to your company. Try to keep this section of your business plan concise,
Mentioning financial projections in your business plan is vital, especially if you’re looking for investors or financing. This section of your business plan highlights how you plan on generating revenue to pay off bank loans, investors, etc. Furthermore, it will also contain detailed information about your business expenditures, profits estimates, and monthly/quarterly sales projections for the coming three years.
That said, accuracy is of the utmost importance here. So, assess all of your past financial statements and ensure that you’re highly accurate when writing down financial projections.
Writing the perfect business plan is undoubtedly a complex and involved process. On top of that, it will require a lot of experience and time to develop a viable business plan. To ensure that it contains all the necessary details and information, consider looking at a few sample business plans on the internet. Go through the things mentioned in this article, and you can write a killer business plan!
