Whether you’re writing your first business plan or have done it several times, there are some key elements to include. These elements will help you write a successful business plan that gets the attention of investors and partners.
Investors and lenders want a clear picture of your company’s financials. That’s why you must provide complete financial data for the past three years.
Executive Summary
The executive summary by a business plan writer is the most crucial part of your business plan. It should provide a clear, concise summary of what your company stands for and what you can do to succeed. It will help attract investors, lenders, or new partners and entice them to read your entire business plan.
The executive summary should be brief, yet precise and convey all the information your readers need to make an informed decision about whether or not they want to invest in your company. Be sure to include key details about your company’s product, market analysis, financial projections, future goals, and buyer persona, among other important information.
To create your executive summary, follow the same structure as the rest of your business plan. Begin by creating headers for each section you’ve written, and then summarize the most important points within each of those headers.
Market Analysis
A market analysis is one of the most important parts of your business plan. It gives you the data you need to show a lender, investor, or employee that there is a viable niche for what you are offering.
It also gives you the information you need to develop a marketing and sales strategy that will attract your target customer base. Your market analysis should detail your company’s competitive position, industry entry barriers, and other factors that could affect your business.
In addition, a market analysis provides a solid basis for estimating your market’s current size and growth, as well as future trends. This data will help you determine how much sales you need to be successful and help you make decisions about where to invest your time, money, and resources.
You can use data from several sources to conduct a market sizing study, including consumer and business survey results, sales data, and other secondary research. It’s best to perform this work when developing a new product or service or preparing to launch it.
Finally, the market analysis should include an assessment of the overall economic environment. It will include government regulations, customer loyalty, and the ease of entry for new companies into your industry.
Company Description
A company description is a key component of your business plan and often the first section that stakeholders read. It helps readers understand your company’s goals, vision, and structure.
This business plan section should be concise and clear, providing a high-level overview of your company’s mission, vision statement, products/services, structure, and core values. Including these aspects in your company description will help potential investors and lenders understand what you do and why it is unique.
Your company description should contain information about who you are, your business name, and your address. You also want to include a short history of your company. It is a great place to give your reader a little peek into what inspired you to start your business and how you’ve grown.
It’s important to ensure your company description is free of grammatical errors and misspellings, as these will tarnish your business’s reputation. You should also take the time to review your company description before sending it to potential investors or lenders for feedback.
A good company description can be the difference between success and failure for your business.
Financials
A strong financial section of a business plan is essential to demonstrate a company’s ability to pay for itself and obtain the funding needed to grow. It can also help potential investors assess the financial risk of a new business.
In this section, you should include your business’s historical financial data, projected income statements, and balance sheets. You should provide at least three years of data for a new business and up to five years for an established one.
You should also include a cash flow statement showing how much money you make and spend in a given period. It includes revenue from sales, cost of goods sold (COGS), operational expenditures (OPEX), interest and loan payments, and depreciation.
Another important financial element to include in your business’s tax information. It will help potential investors understand the taxes you are liable to pay.
Finally, you should include a budget for capital expenses: investments in physical assets like property, buildings, and equipment. It can include purchasing or renting a new building, buying or leasing equipment, or fixing an HVAC system.
Management Team
The management team section of a business plan is an essential part of any business strategy. It shows investors the potential for the company to grow, as well as if gaps in management need to be filled. The management team chapter should include relevant team bios, as well as a summary of the roles and responsibilities of each member.
A good management team is made up of individuals who feel a real commitment to the business’s goals and are not afraid to make changes if they think they need to. They should also be able to motivate their team and encourage them to work hard for the business.