Ask any successful business owner, and they’ll tell you how important a business plan is. A business plan helps to provide direction, especially if you’re starting a new business, and is vital inattracting investors if you’re looking for funding. It serves as a roadmap to guide you through each stage of your business.
Luckily, writing a business plan is not complicated or difficult. You can hone your business skills by taking a course online, such as the “How to Start A Business” course offered by Shaw Academy. If you’re unsure, you can readreviews about Shaw Academy to learn more about them. Taking a course like this will equip you with the skills of starting a business, and you’ll learn in detail how to create a successful business plan. You can also expand your options of online learning platforms by readingonline schools reviews and choosing one that suits your needs.
Whether you’re writing a business plan to attract investors and business partners, or you need to put down your ideas and create a roadmap for your business, there are some essential elements it should include. This article will show you five things you need to make a successful business plan.
The executive summary is one of the most critical elements of any business plan. It is essentially an overview of your company and your plans and goals. Ideally, it should contain your mission statement, basic info about your business, and the product or service you’re offering. If you’re looking to attract investors with your business plan, your executive summary should include why you’re seeking funding and information about your banking. It must also be brief and readable, taking only one to two pages.
The executive is often written last as it is intended to highlight the rest of the business plan. However, it is the first thing that should appear in your document.
Your company description should occupy the next session after the executive summary. According toSBA, you should use this section to give a detailed description of your business. It should include key information about the customer problems your business will solve. The information should be specific such that it lists out the individuals, companies, and organizations that your company will be providing services to.
You should also discuss what makes your business stand out from other companies. Be sure to talk about all the strengths of your business.
Themarket analysis section provides information on your industry and target market. This section involves using data and statistics to discuss the strengths of other businesses in the industry, the size of the market, and how your business will fit in, and the market share it will capture. It also forecasts the market growth rate, describes the customer needs, purchasing trends and themes, etc.
Products and services
If you didn’t explain the details of your products and services in the company description section, this is an excellent opportunity to provide extra information. Here you should clearly describe the products you’ll be selling or the services your business is offering. If you are building a new product, the uses, value, and nature of the product must be explained. Explain the unique benefits of your product and detail out the product lifecycle. You should also include other information such as your intellectual property and any ongoing research development.
Organization and Management
Use this section to describe the organizational structure of your business. Explain how your company will be operating, your ownership information, management teams, and employees. Give a summary of the skills and responsibilities of the managers. If you can, include an organizational chart to describe the roles of everyone in the company graphically.
It should also state the legal structure of your business. Will it operate as a partnership, sole proprietorship, or limited partnerships? Also, mention any board of directors in your company.
Your business plan should also discuss your financial plans and goals for the next n number of years. Your financial projections should be based on your market research. This would look like your expected revenue for the first 12 months of your business and a financial outlook for the second, third, fourth, and fifth years.