Five Crucial Components Of A Good Business Plan

The format of a Business Plan is something that hasBe sure to include the legal name, physical address
been developed and refined over the years and isand detailed description of the nature of your business.
something that should not be changed. Like a goodIts important to keep the description easy to read using
recipe, a business plan needs to include certaincommon terminology. Never assume that those
ingredients to make it work.reading your business plan have the same level of
When you create a business plan, dont attempt totechnical knowledge that you do. Describe how you
recreate its format. Those reviewing this type ofplan to better serve your market than your competition
document have expectations you must meet. If theyis currently doing.
do not see those crucial decision-making components,Market Analysis Section
theyll see no reason to proceed with their review ofAn analysis of the market shows that you have done
your business plan, no matter how great your businessyour homework. This section is basically a summary of
idea.your Marketing Plan. It needs to show the demand for
Executive Summary Sectionyour product or service, the proposed market, trends
Every business plan must begin with an Executivewithin the industry, a description of your pricing plan and
Summary section. A well-written Executive Summarypackaging and a description of your company policies.
is critical to the success of the rest of the document.Financing Section
Here is where you need to capture the attention ofThe Financing section must show that you are as
your audience so that they will be compelled to readcommitted to your business venture as you expect
on. Remember, its a summary, so each and everythose reading your business plan to be. Show the
word must be carefully selected and presented.amount of personal funds you are contributing and
Use the Executive Summary section of your businesstheir source. Also include the amount of capital you
plan to accurately describe the nature of yourneed and your plan to repay this debt. Include all
business venture including the need that you plan to fill.pertinent financial worksheets in this section: annual
Show the reasons why people need your product orincome projections, a break-even worksheet,
service. Show this by including a brief analysis of theprojected cash flow statements and a balance sheet.
characteristics of your potential market.Management Section
Describe the organization of your business includingOutline your organizational structure and management
your management team. Also, briefly describe yourteam here. Include the legal structure of your business
sales and marketing plan or approach. Finally includewhether it is a partnership, corporation or limited liability
the numbers that those reviewing your business plancorporation. Include resumes and biographies of key
want to see the amount of capital you seek, theplayers on your management team. Show staffing
carefully calculated sales projections and your plan toprojection data for the next few years.
repay the loan.By now youre probably thinking that you dont need
If youve captured your audience so far theyll read on.Business Plan just yet. Well you do, and there is
Otherwise, theyll close the document and add yourbusiness plan building software that can help you
business plan to the heap of other rejected ideas.through this immense project. These software
Devote the balance of your business plan to providingpackages are easy to use and affordable. Use one
details of the items outlined in the Executive Summary.today and produce a professional-quality Business Plan
The Business Sectionincluding all critical components tomorrow!