Part 1 of this series explained why you would want a business plan. Parts 2 to 4 will help you understand the different sections needed in a plan and what types of things you need to write in them.
Front Cover
The front
cover should contain a title with the name of your company and the words
“Business Plan.”
Beneath the
title you need to include your business name, your name, other owner’s names,
address, phone number, fax, and email.
An executive
summary is a short one to two page synopsis of the entire plan. It is easier to
write this section last so that you know exactly what is in the rest of the
report.
Think of the
executive summary the way you would think of a resume. A resume lists all your
accomplishments and your skills to show potential employers what you have to
offer. The executive summary will explain to potential lenders or partners what
your company is doing, has done, and has the potential to do. This is your way
of getting the best of the best across to the reader so that they decide to
read on.
Some
questions you will want to answer in the executive summary include:
- What is your business
- Who are your customers?
- Who are you and why do you think you will make a good at what you do?
- What do you think the future holds for your business and your industry?
The summary
should state the amount needed, what the money will be used for, and how the
money will help your business.
General Overview of
Your Company
This section
will describe your company. You will need to explain exactly what you will do. This section has many
subheadings including:
- Legal Formation of Your Company
- Company Mission Statement
- Business Approach
- Industry at a Glance
- Your Company’s Strengths
- Goals
1. Legal
Formation of Your Company:
How is your
company organized? The answer can be one of the following:
- Sole proprietor
- Partnership
- Corporation
- Limited Liability Corporation (LLC)
Be sure to explain
why you chose this form of organization for your company.
2. Company
Mission Statement: A mission statement
explains what principles will guide you in your business dealings. Mission statements are best kept to approximately 30
words.
3. Business
Approach:
This section
helps you explain your approach to your work.
4. The
Industry at a Glance:
Those lending
you money or considering a partnership will want to understand the industry.
This section allows you to tell them about the growth, future changes, and your
ability to capitalize on these changes.
5. Your
Company’s Strengths
- What will make your business successful?
- Considering your competition, what strengths make you stand out?
- What do you bring to the table personally? Do you have a particular skill set or experience that will make this business succeed?
6. Goals:
In this section, you are going to describe your goals and how you will know if
you are achieving them.
Go ahead and start writing your business plan today. Watch for Parts 3 and 4 of this series.
