| A good business plan contains the essential elements | | | | wherever possible. The benefits of one product over |
| that testify that the research has been done and that | | | | another should also be detailed. |
| the owner thoroughly understands his market. There | | | | Describe Your Marketing Strategy |
| are identifiable sections which, when researched and | | | | This section details the plan of advertising, pricing, |
| written properly, give the reader enough information to | | | | distribution channels, and partnerships that will get the |
| make a decision about the potential of the business. | | | | product to the customers. It can include a rollout plan |
| The sections are outlined below. | | | | and key milestones. |
| Define the Problem | | | | Describe Your Management Team |
| For a business to survive and remain profitable, it must | | | | This should include a brief bio of each member of |
| solve a real problem. The first part of the plan must be | | | | executive management. This section is a key element |
| a clear statement of the issue that is being addressed. | | | | in the success of the plan. It should be clear how each |
| This should be substantiated with quantifiable evidence | | | | of the members will provide business savvy and |
| of the nature of the problem. When possible, the cost | | | | knowledge. |
| in terms of money and time should be addressed. | | | | Describe the Current Financial Picture |
| Define the solution | | | | It is very important to show exactly how much is being |
| The next section of the plan includes a general | | | | invested in the company and what additional financial |
| description of the solution and a description of the | | | | needs are being requested. The initial investments can |
| benefits of this particular solution. This is a | | | | also describe the 'sweat equity' investment of the |
| summarization of the product, not a detailed | | | | founders. |
| specification. | | | | Describe the Financial Projection |
| Describe the overall market | | | | This should be a five year projection of the revenue |
| This section describes the general market for the | | | | and expenses. The break-even point must be |
| particular niche product. It should show market trends | | | | identified. If there is historical data, the past three to five |
| and dynamics from as much research as possible. | | | | years should be included in this section. |
| Describe the Business Model | | | | Describe the Exit Strategy |
| This section should clearly show how the income will | | | | This section is necessary when you are seeking |
| be produced, what expenses are involved, and what | | | | investors who need to know how and when they |
| kind of profit can be expected. It should clearly show | | | | should expect to reap their rewards. It may be and |
| the potential of the investment. | | | | Initial Public Offering, a proposed sale, or other strategy. |
| Describe the Competition | | | | Remember, a good business plan will answer any |
| All of the competing products and suppliers should be | | | | question a potential investor has. It will also serve as a |
| listed, along with pricing descriptions and comparisons | | | | roadmap and checklist to the owner. |