Now that you
understand why you need a business plan and you've spent some time doing your
homework gathering the information you need to create one, it's time to roll up
your sleeves and get everything down on paper. The following pages will
describe in detail the seven essential sections of a business plan: what you
should include, what you shouldn't include, how to work the numbers and
additional resources you can turn to for help. With that in mind, jump right
in.
Within the overall
outline of the business plan, the executive summary will follow the title page.
The summary should tell the reader what you want. This is very important. All
too often, what the business owner desires is buried on page eight. Clearly state
what you're asking for in the summary.
The business
description usually begins with a short description of the industry. When
describing the industry, discuss the present outlook as well as future
possibilities. You should also provide information on all the various markets
within the industry, including any new products or developments that will
benefit or adversely affect your business.
Market strategies
are the result of a meticulous market analysis. A market analysis forces the
entrepreneur to become familiar with all aspects of the market so that the
target market can be defined and the company can be positioned in order to
garner its share of sales.
The purpose of the
competitive analysis is to determine the strengths and weaknesses of the
competitors within your market, strategies that will provide you with a
distinct advantage, the barriers that can be developed in order to prevent
competition from entering your market, and any weaknesses that can be exploited
within the product development cycle.
The purpose of the
design and development plan section is to provide investors with a description
of the product's design, chart its development within the context of
production, marketing and the company itself, and create a development budget
that will enable the company to reach its goals.
The operations and
management plan is designed to describe just how the business functions on a
continuing basis. The operations plan will highlight the logistics of the
organization such as the various responsibilities of the management team, the
tasks assigned to each division within the company, and capital and expense
requirements related to the operations of the business.
Financial data is
always at the back of the business plan, but that doesn't mean it's any less
important than up-front material such as the business concept and the
management team.
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