| A good business plan has ten key components. | | | | research questions such as the following: |
| Providing a comprehensive assessment of each of | | | | - What are the sizes of the target market segments? |
| these components is critical in attracting investors. This | | | | - What are the trends for the industry as a whole? |
| article discusses the first five components. A | | | | - With what other industries do your services |
| subsequent article will detail the remaining elements. | | | | compete? |
| 1. Executive Summary. The Executive Summary | | | | 4. Analysis of Customers. The Customer Analysis |
| provides a succinct synopsis of the business plan, and | | | | section assesses the customer segment(s) that the |
| highlights the key points raised within. The Executive | | | | company serves. In this section, the company must |
| Summary must communicate to the prospective | | | | convey the needs of its target customers. It must then |
| investor the size and scope of the market opportunity, | | | | show how its products and services satisfy these |
| the venture's business and profitability model, and how | | | | needs to an extent that the customer will pay for |
| the resources/skills/strategic positioning of the | | | | them |
| Company's management team make it uniquely | | | | 5. Analysis of Competition. This section defines the |
| qualified to execute the plan. The Executive Summary | | | | competitive landscape of your business. It identifies |
| must be compelling, easy-to-read, and no longer than | | | | who the direct and indirect competitors are, assesses |
| 2-4 pages. | | | | their strengths and weaknesses and delineates your |
| 2. Company Analysis. This section provides a strategic | | | | company's competitive advantages. |
| overview of the company and describes how the | | | | The first five sections of a business plan are critical |
| company is organized, what products and services it | | | | because in most cases, investors will not read the full |
| offers/will offer, and goes into further detail on the | | | | plan. As such, winning the investor's interest early is |
| company's unique qualifications in serving its target | | | | critical. In addition to providing background on the full |
| markets. | | | | business opportunity, these sections provide the |
| 3. Industry Analysis. This section evaluates the playing | | | | market research to back up the business' potential, |
| field in which the company will be competing, and | | | | another critical factor in gaining an investment. |
| includes well-structured answers to key market | | | | |