Whether you’re planning to open a shop that makes the best coffee around or you want to sell eco-friendly office supplies, you’ll need to explain why your business is necessary and how it’ll differ from its competitors. It provides investors, lenders and potential partners with an understanding of your company’s structure and its goals.If you’re trying to create one, check out 10 key components of a business plan.
Whoever’s reading this portion of your business plan should know exactly what you’re planning to create and sell, how long your products are supposed to last and how they’ll meet an existing need. If you know how much it’ll cost to make your products and how much money you’re hoping to bring in, those are great details to add.
You’ll need to list anything related to patents and copyright concerns as well.
The next section that should appear in your business plan is a company description.
It’s best to include key information about your business, your goals and the customers you plan to serve.
If there are any issues that could prevent you from jumping into the market, like high upfront costs, it’s best to say so.
This information will go in your market analysis section.If you want to, you can create a diagram that maps out your chain of command.Don’t forget to indicate whether your business will operate as a partnership, a sole proprietorship or a business with a different ownership structure.Related Article: 15 Ways Startups Can Raise Capital Following your market analysis, your business plan will outline the way that your organization will be set up.You’ll introduce your company managers and summarize their skills and primary job responsibilities.In the final section of your business plan, you’ll reveal the financial goals and expectations that you’ve set based on market research.You’ll report your anticipated revenue for the first 12 months and your annual projected earnings for the second, third, fourth and fifth years of business.Your executive summary should appear first in your business plan.It should summarize what you expect your business to accomplish.That’s the most important question you’ll answer when you discuss your sales strategy. It’s a good idea to throw in the number of sales reps you’re planning to hire and how you’ll go about finding them and bringing them on board. If you need funding, you can devote an entire section to talking about the amount of money you need and how you plan to use the capital you’re trying to raise.If you’ll need extra cash in a year or two to complete a certain project, that’s something that’s important to disclose.