| A business plan is a continual work in process, and | | | | focus marketing efforts on initially. Consider including |
| should be updated at least annually, as your business | | | | some of the following information: |
| needs change. However, a well-written business plan is | | | | - Key characteristics of your target market; |
| a document that will be required when seeking | | | | geographical location; cyclical trend information; size of |
| financing for both start-up ventures and expansions. | | | | the market. If you have identified secondary markets, |
| This plan will be reviewed by potential lenders to see | | | | include this information as well. |
| how much financing will be offered and under what | | | | - How your business intends to gain market share and |
| terms, if at all. When creating a successful business | | | | what techniques will be leveraged |
| plan, there are a number of fundamental sections that | | | | - Your business's pricing structure, profit margins and |
| need to be addressed. | | | | discount levels offered for purchases |
| Description of the Business | | | | - Any trends or changes that would potentially affect |
| The most important component of your business plan | | | | your target market |
| is the executive summary, as it is the first section read | | | | Financial Projections and History |
| by potential investors and lenders. This brief 1-2 page | | | | Once you have analyzed your market and objectives |
| section will offer a concise overview of your business | | | | you intend to target, you can effectively allocate |
| plan and your organization. Where your business is and | | | | company resources. If your company is established, |
| where you would like to take it should also be | | | | you will need to provide financial records. If possible, |
| addressed. In short, the executive summary tells the | | | | provide 3 year summaries with quarterly details broken |
| reader why you believe your business concept or idea | | | | out. Supporting documentation if available will make this |
| will be successful financially. While this is the first | | | | section more credible; copies of any trade licenses, |
| section often read, it should be the last section written. | | | | letters of intent from suppliers and copies of any |
| The executive summary should contain the following | | | | current sales contracts or agreements. |
| information: | | | | If your business is a start-up, you will be required to |
| - Your company's mission statement | | | | provide prospective financial data for lenders. Provide |
| - The date your business began | | | | forecasted income, balance sheets, cash flow |
| - Location of your business | | | | statements and capital expenditure budgets over a |
| - Description of your facilities | | | | 5-year period, broken down quarterly. Your first year |
| - Current number of employees | | | | data should be further broken down by month. Ensure |
| - Name of business founders and/or executives as | | | | that your funding requests match your projections. |
| well as their roles and functions | | | | Management Experience and Structure |
| - Products manufactured or services offered | | | | This section should include your organization's structure, |
| - Summary of the growth potential including financial | | | | profiles of your management team and the |
| highlights | | | | qualifications of your Board of Directors. A simple way |
| To assist the reader in locating important components | | | | to illustrate your organizational structure is with an |
| of your business plan, include a table of contents. | | | | org-chart. Each management team member or Board |
| Market Analysis | | | | of Director profile should contain his or her name, |
| The market analysis section of your business plan | | | | position, experience level, education and unique skill |
| should outline your general knowledge of the industry, | | | | sets as applicable to the organization. |
| should outline a general analysis of your competition | | | | While there's much more you can include in a business |
| and should highlight your marketing strategies. | | | | plan, this information is critical to the creation of a |
| Begin by providing an overview of your industry; size, | | | | powerful business plan for obtaining financing and |
| growth rate, trends and primary customer groups. | | | | helping your startup business grow. |
| Next, outline your business's target market. Outline | | | | Download a business plan checklist. |
| which particular client groups or niches you intend to | | | | |