When planning a new business venture, there are many things you have to consider, accomplish, and plan. You will have a lot of tasks before opening your new business, but your business plan is the most important.
Before you turn on your open for business sign, it’s crucial to have a well-developed business plan at hand. Your business plan is more than a tool for finding investors or getting a loan. Your business plan is your roadmap to success, and it will help you monitor your business and keep it organized during changes and growth. But a successful business is only as good as a successful business plan. Here are six key elements every business plan must include.
Executive Summary
The executive summary is a synopsis of the entire business plan and should be the first page of your business plan. The summary should include your mission statement, what your company does, a breakdown of your products and services, who your customers are, and how you expect your business to grow.
Overview of Your Business
The business overview is the next section of your business plan and is where you will go into detail about your products or services. Describe why you’re business is better and different from your competitors. It’s also a good idea to include information about the market environment your company operates in and the specific types of customers you will serve.
Market Analysis and Strategy
The marketing analysis section should include details about your target market, such as demographics, size, forecasted growth rates, purchasing trends, and other information related to your marketing plans and strategies for growing your business. This is the section that showcases who would be interested in your product or service as well as the projection for how well your product or service meets the needs of your target market.
Marketing Plan
In order for customers to know that your business exists, you will need to market to them. A marketing plan is a great way to showcase how you plan to reach your target audience and what you have in mind for convincing them to try your product or service. In addition, you’ll need to develop business design assets such as a logo, building signage, and a decent website. Including in your plan how you intend to make those assets can go a long way. For example, you can recommend in your plan what type of company you plan on working with or the specific company if you have one in mind. Working with a professional branding company such as BrandNerds will help you overcome the learning curve of marketing. In addition, a branding company can ensure that your branding meets the wants or needs of your target market.
Organizational Structure
The organizational structure of your business plan should include information on ownership, your management team, and the number of employees you have. Include detailed information on key employees and their talents, skills, and job duties.
Financial Plan and Information
The final page of your business plan is the financial plan, and it’s also the most important. A good financial plan should include a 12-month profit & loss projection, a month-by-month forecast of sales, operating costs, tax, and profits for the following year or up to three years, a cash flow statement & forecast, and a breakeven analysis. The financial plan should be as detailed as possible as it will show investors and lenders where their money will be going and how you plan to use it within the business.
A business plan is the most crucial planning tool for starting and operating a successful business. A good business plan is the foundation for any successful business and should be updated as your business grows and other conditions that affect your business change.