Once you are ready to open a business, the very first thing you need is a business plan. A good and professionally written business plan helps entrepreneur to make their wild dream successful. A startup business plan, act as a blue print for the future of a new business. A business plan is written for two purposes, it helps the entrepreneur to set the direction for their business and second, it is used to convince potential investors and lenders for attaining loan.
Key elements of a business plan:
- Executive summary
- Company description
- Products and services
- Industry overview
- Marketing plan
- Operational plan
- Financial projection
Executive summary:
An executive summary is the first and the most important section of a business plan. It is one or two page overview written after completing a business plan. This section is used to capture the interest and support of the reader. From the executive summary a reader decides, whether, to read the remainder of the plan or not.
Company description:
It is a snapshot of a business, which contains the:
- Mission statement
- Vision statement
- Company goals and objectives
- Company strengths and core competencies
- Legal form of ownership
Products and services:
What products and services you are offering and how it will benefit your customers. How unique your product is and their pricing? You can refined and redefined your product and service at different stages of planning process. Your business is totally depends on the products and services that you’re offering to the market. Describe all the features you think makes your product distinct from your competitors.
Industry overview:
The analysis of the industry in, which you are going to open your business, comes under industry overview section of your startup business plan. It demonstrates the industrial statistics and trends of the industry, which helps you to determine your longevity in the market and strategic information that help you to be competitive.
Marketing plan:
No matter, how good your product or service is, without effective marketing, you cannot take your business towards success. Marketing analysis requires well-thought and systemic research. Marketing analysis is important because it helps you to determine the people who want to buy your product, the competitors of your business, the growth of your market and making critical marketing mix decisions.
Operational plan:
Explains how you will set up the business, who will manage it, location, and surrounding environment.
Financial projection:
Financial projection shows the financial picture of a business. This is the most important section of a startup business plan, which tells the investors and lenders that, whether, you are capable of running a business or not.