Whether you have grand plans for your business, or you’re trying to find ways to streamline it, a business plan is such a vital component. Ultimately, a business plan should have everything in place, but for those that are just starting out, it may be difficult to condense all the thoughts, feelings, and ambitions into one simple document. So with this in mind, what are the most essential aspects of a business plan that you need to focus on?
Executive Summary
While this is the first part readers will see, it should be the last part of your business plan you complete. It’s an overview of the entire business plan. The goal is to capture the reader’s attention by providing a summary of the history of the company, the current position of it, and where it will go.
Market Analysis
You have to look at the state of the market in the round. It’s about finding your own niche, and the target market, the profiles of your ideal customers, and other components of market research.
Description Of Company
This is self-explanatory, you are essentially stating what the company is. You can also incorporate your mission statement which can help you to answer some specific questions you may not have answered already. Things like the business model, the principles, legal structure, your projected growth, and so on.
Management And Organisation
The people are the most important aspects of your business, and this section highlights why your management team matter more than just a product idea. Ultimately, those that are going to invest in you need to see that you’ve got the goods, and by highlighting the expertise of each member, you can show how everything slots in. You want the machine to be well-oiled, and the people are the most essential component of this.
Marketing And Sales Management
Raising money and how you plan on making a profit is all about covering every base. There are so many different pricing strategies out there now, and cost plus pricing strategies are one of those controversial ones right now, so if you are aware of the pitfalls of cost plus pricing strategies, incorporate these aspects into the plan overall. With your marketing and sales strategies, you need to explain the relationship between the price point and everything else within the company. In addition to this, you need to speak about your promotional materials, like your press releases and social media. This is important because you need to show the investor that you have thought about every single permutation. It’s not just about how you intend to promote yourself, but also how you plan on acquiring new customers and improving your customer retention.
Product Or Service Line
Highlighting what you’re selling, and how the product will benefit customers new and old. Your product needs to solve a problem that’s been identified within the target market. You can also provide information relating to private costs, the suppliers, as well as additional services in this section.
Request For Funding
Finally, you need to provide current and future funding requests, how the funding will work with your strategies, as well as any other factors that will impact your ability to repay the money.
This is a business plan in a nutshell, but drill deep into each component. You need your business plan to be a comprehensive guide to the business as well as the best promotional material you’ve ever written. Good luck!
Cover Image: Picture
