When writing your business plan, you must include necessary business plan components for it to be effective and coherent. Even if you're the only one who will see the plan, you need these to give you a comprehensive picture of where your business is headed. The good news is that there aren't many necessary components to worry about. Having an executive summary is not fluff. It's one of the necessary business plan components, because very few people will have an interest in reading your entire business plan in depth.
Sample Business Plan
How to Write a Business Plan for a Small Business: 14 Steps
When you have a business idea, creating a business plan can provide you with a road map that helps you determine your strengths and weaknesses in the marketplace, develop effective business strategies and estimate your financial success and growth. Along with helping you show that a new business idea is viable, a business plan is a living document that you'll update regularly and present for various purposes. Common elements of a business plan include the executive summary, company description, management and personnel summary, marketing strategies and funding request. The other elements include the product or service description, financial projections, sales strategies, market analysis, competitive analysis and appendix. Before you start the work of writing all the contents of a business plan, it helps to understand how the document can improve the chance that your business succeeds.
Elements of a Business Plan
Business planning forces an entrepreneur to develop a detailed understanding of the market—including their unique value proposition, competitive strategy, and what it will take to succeed. This understanding includes specific operating and financial statement terms, which often take a significant amount of research and time to discover. In this section, we will focus in on the business plan, which pulls together the research, analysis and self-assessment of prior sections. The SBA recommends prospective entrepreneurs address the following nine elements in their business plan:. The SBA provides two example business plans for reference: consulting firm and toy manufacturer.
Whether you are just starting out and need startup investment or are looking to expand your business and raise capital, a business plan is a must. It needs to be a serious business document with the following six elements. Without grabbing their attention, your business plan, no matter how well researched and presented, may not stand out enough.