How to write a business plan
Every business should have a business plan. This document is your road map to the future. It will help you define the direction you want your business to take. You’ll definitely need a business plan if you want to get financing from an investor or lender.
- Decide what should go into the business plan. Your plan should include information on your company, product or service, customers, market, competition and involved risk.
- Write an executive summary. This is the first section of the plan and should be a brief description of all the elements covered in the rest of the plan. It should be no more than two pages long.
- Describe your company. Talk a little about yourself and your management team. Spell out the purpose of your business.
- Explain your product or service. Provide details about how you will make it or provide it. Analyze the costs associated with this process. List your supply sources.
- Talk about the market you’re entering. Discuss general trends in the industry. Include details about the market segment you are pursuing and the niche you are targeting. Mention competitors in your market. Talk about your target customer. Provide demographics on your customers. Explain their buying habits.
- Describe your marketing plan. Explain how you will push sales through advertising, promotion, and public relations. Analyze and document how much this will cost.
- Detail your financial projections. Show your yearly revenue projections and your expenses.
- Be sure to gather all of the information for the business plan before you start writing it. Organize your research in outline form, then start putting pen to paper.
- Keep the entire business plan less than 50 pages. Investors and lenders get many business plans every day. Most plans get a cursory look before they are either tossed out or kept for further review.
/ Keep the entire business plan less than 50 pages. Investors and lenders get many business plans every day. Most plans get a cursory look before they are either tossed out or kept for further review.