The most important feature of a new business is the business plan. It contains all the important documents about the functioning of the organization, how to look for investors, and also how to approach the customers. You can follow these guidelines to come up with a good business plan.
What Are the 5 Most Important Elements in a Business Plan?
Even though big businesses have bigger business plans, the basic structure is the same for every company. There are certain key elements that every good business plan should cover. They are as follows:
- Executive Summary
The executive summary is the portion of the business plan that tells the reader about the prospects of the company. The executive summary should be written in a clear manner. Investors should look at it and understand how the business will work and what it will offer.
Moreover, there are certain things that every executive summary should have. They are:
· Mission Statement
The mission statement is an action-based summary of the company. It explains what the company is thinking about doing for their customers and the public. Moreover, it also includes a general description of the company, its goals, and its core functions.
· Company Information
This part of the executive summary outlines how the company was formed and with what motive. It also lists the founders of the company and the names of the major employers.
· Growth Projection
Thus after the details of the company have been introduced, you should write about the growth projections. They are the plans regarding the growth prospect of the company. You can mention how certain investments will help in the growth of your company.
· Products and Services
Furthermore, you will also have to mention the products or services that your company will offer to the customers.
· Financial Statement
You will have to give some info about the capital investments for the company and who are the future investors.
2. 2. Business Description
In this section, you should write about why you have started that particular business. You should also mention what kinds of services or products you intend to sell. Moreover, if you are going to manufacture products on your own then you will have to give the details. You have to mention how you will get the raw materials and the manufacturing process. You will also have to mention why your products are better than what your competitors are offering to the public.
If you are going to provide some kind of service to your customers then you have to describe the service. You will also have to write about how you will provide them with those services. You will also have to write about the strategic relationships and administrative issues of your company.
- Market Research and Analysis
You will also have to include your market research and analysis in brief. You should talk about your marketing strategies, sales, deadlines, and milestones. On the other hand, you have to focus on how your company or business will function and what is your target market and have to write about the size of your targeted public. Moreover, there should be some information about how you will compete with other companies who are offering the same thing.
- Organization and Management
In this portion, you will have to elaborate on the company information written in the executive summary. You will have to write in detail about all the owners of the company and their biography. There should be some details about the people who will operate the business.
You will also have to include details about the people who will be working in the top positions. Moreover, you should also mention how these people will meet the business goals set up by your company.
- Financial Documents
In this portion, you have to provide complete details of all the financial statements of your company. Moreover, they will have to be the same as the numbers given in the executive summary and other sections. It has to include your balance sheet, cash memos, and other financial projections.
The financial statement should be written very precisely. It should be in such a way that the moment investors see them they will get a complete idea. They will understand how your business will manage the financial part of your plans and strategies. Thus this is the most important part of your business plan. This is because investors will focus a lot on the financial aspect before investing in your company.
The steps mentioned above are basic guidelines about how you should prepare a business plan. But before you start creating one, you should have a complete outline ready for the key factors of your company. This will help you in making the best business plan for your company.