Factors to Include in Your Business Plan 

When you first sit down to start your business, you need to draw out a business plan. This is, essentially, a strategy document of the type of business you want to build and the steps you are going to take to do so. This business plan is essential to any entrepreneur as it gives you a step-by-step guide on how your business will run that you can continue to refer back to as you grow your business in your preferred marketplace.

The problem that most new entrepreneurs face is they do not take the time to write up their business plan and their finance strategy. They skip over this business concept until it is time to raise some funding. Any finance institution or even your run of the mill investors are going to want to see your business strategy for things like finance acquisition, how your business will run, and marketplace tactics.

Instead of rushing around at the last minute trying to formulate your business plan, it should be done before you open your business to the marketplace. This way, applying for financing can be a breeze instead of a hectic mess. If we have finally convinced you that a business plan is a necessity, here are some of the key factors you will need to include in it to have a successful strategy of how your business will run.

Cover Page

The truth of that matter is that time is money for many finance companies and investors. They may love your business concept but do not want to search through pages to find your contact information. Make it concise on the cover page of your document so they can easily get a hold of you to ask questions about your strategy and anything in your business plan.

Executive Summary

This is one of the most important aspects of your business concept. If the investors of finance institutions find your business concept unclear or your numbers missing, they are likely to skip right over funding your business. You should utilize this section to explain what your business does, what need it solves for the market, and the unique attributes it brings to the market. You are basically describing your business concept or how your business will run in this first part.

The second part of your executive summary is the numbers. All investors and financial backers want to see these. You should clearly show your topline financial projections and the specific amount of funding that you are looking to raise for your business. This gives investors a quick look at your finance and strategies for obtaining revenue in the future.

Company Profile

Now, since you’ve got the key elements of your business concept out of the way like your expected profits and the products and/or services you plan on bringing to the market, it’s time to let financial institutions and investors discover more about how your business will run. You will want to start with a formal introduction to your business. This includes things like where you are located, how you formed, and the legal type of entity that you are. You’ll want to utilize this section to show investors and finance institutions what your company has contributed to the marketplace in the past so they can understand your track record.

When it comes to bringing your products and/or services to the marketplace, you need a financial strategy to fund you and you’ll need to know how your business will run in full production. While you may have your business strategy in your head to face the new marketplace, that does not help would-be investors and other contributors understand how your business will run with the necessary funding. Rather, you will want to layout your business concept to these marketplace funders in a well-thought-out business plan.

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