How to Write a Business Plan

​What to Include in Your Business Plan

Not all businesses invest too much time in creating a comprehensive plan in the initial phase. But most business owners find it helpful to take a step back, define their business idea and target market, identify their point of differentiation and chalk out the strategy to succeed.

A business plan template consists of many different elements. Whether it is a salon business plan or a farm business plan, it is important to address these different elements. And while it’s not crucial to include all elements, it is helpful to be concrete to create a successful business plan. Let’s take a closer look at these sections.

Executive Summary

An executive summary forms the foundation of your business plan. It provides an overview of your business, your products, differentiators and financial projections. Most investors spend the maximum amount of time drilling down this section. The challenge is to provide the answers without going into a lot of detail.

Overview and Business Objectives

In this section, your business plan will describe who you are and what you plan to do with your business. A comprehensive business overview will help explain what makes you different. This section is also useful to provide your company overview. Who are your key team members? What value do they add? These are some questions that will be answered in this section.

Company Description

This section describes the values that drive your business. It includes a mission statement that defines why your company exists. This statement has to be a short sentence that adequately conveys the core principle behind your business. To give an example, LinkedIn’s mission statement is connect the world’s professionals to make them more productive and successful

Management Summary

In the management summary, describe how your business is structured, who is involved and the external resources. The idea here is to showcase the expertise of your team and your external business partners.

Appendix

Since your business plan is supposed to be concise, you may find it tricky to include additional information. This is where including appendices may prove useful. You can add CVs of your team players, market research, legal documents and product information here. If for instance, you have a daycare business plan, make sure to include certifications and medical experience.

What is a Business Plan?

A business plan is a document that describes the business goals of a company and highlights its strategy to achieve its objectives. It outlines a business’ sales plan, financial and operational model and other key elements essential to its success.

Tips to Write an Amazing Business Plan

To create a good business plan, it is important to structure information. Here are some tips that will come in handy.

• Keep it concise: While there is a lot of information you may think is important, the plan has to be short and readable, preferably no longer than 20 pages.
• Provide supporting documentation: If you have documents that can make your business plan more compelling, consider adding them as appendices.
• Stay consistent: The document should have a consistent tone, messaging and style. It’s therefore good to proof it properly before finalizing.
• Avoid jargon: Do not include industry-specific jargons that make the document unreadable. Be straightforward and try to explain yourself in the simplest way possible.
• Be clear about your goal: Where do you see this plan being used? Is this something you want to create for your team or do you plan on taking this to potential investors? Based on your needs, you must create a structure that adds most value for your audience.
• Do your research: Your business plan should reflect the time and effort you put into it. This is especially important when you work on specific sections such as competitive analysis and target markets.
• Be transparent: When it comes to the financial health of your company, do not hide difficulties you might be facing. Providing a clear picture will help you gain your investor’s trust and confidence.
• Update it: A business plan evolves over a period of time. Your market realities may have changed or new competition might have entered the scene. It’s therefore good to keep the document updated so it reflects your current business.

Source: https://smallbiztrends.com/
Image: Depositphotos

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