The Elements of a Business Plan



Entrepreneurs should consider the following elements as a starting point for planning and revise as necessary to better tell the story of their new business.

Executive Summary

The overview should appear at the beginning of your business plan. You should summarize what you want from your business. The Small Business Administration suggests writing this section last, as it is intended to highlight what you want to discuss in the rest of the plan. A good  summary is compelling. It includes the company's mission statement and a brief description of its products and services. We also recommend that you briefly explain why you started the business and include details of your experience in the industry you are trying to enter.

Company Description

A business description contains important information about your business, your goals, and the  customers  you  serve. Here we explain why your company is different from other competitors in your industry and outline your strengths, such as how you deliver solutions to your customers and the competitive advantages that  give your company a competitive edge.

Market Analysis

 Here you demonstrate that you have a basic understanding of the industry inside and out and the specific market you want to enter. Here, we use data and statistics that analyze industry trends and issues to back up the strengths we highlight in our company description. Show what other companies are doing and how they succeed or fail. Market analysis should also help you visualize your target customers. This includes how much money you make, what your buying habits are, and what services you need in your target customer's preferences. Above all, the numbers should help reveal why your company can perform better.

Competitive Analysis

A good business plan provides a clear comparison with direct and indirect competitors. Here you can prove your industry knowledge  by analyzing your strengths and weaknesses. Your ultimate goal is to show how your company develops. Also, if there are any issues that may prevent you from entering the market, such as high initial costs, they should be addressed here. Competitive analysis is included in the market analysis area.

Description of Management and Organization

Your company should also explain how your organization is set up. Here we introduce the business he leader and summarize their skills and main responsibilities. An effective method is to create a diagram that maps the chain of command. 

Remember to indicate whether your company is a partnership,  sole proprietorship, or company with a different ownership structure. If there is a board of directors,  the members should be identified.

Breakdown of Your Products and Services

A business description is an overview, but a detailed product and service breakdown provides a complementary and more complete description of the products you make and sell, how long they last, and how they meet existing demand. It is intended to you should mention here not only the supplier, but also other important information about the cost of producing the product and the amount you want to raise. In addition, relevant information about  patents and copyrights should be listed here.

Marketing Plan

This is where you describe how you want your product or service to be presented to your target customer. This is where you analyze the steps  you will take to promote your product and the budget required to execute your strategy.

Sales Strategy

In this section, you should answer how you  sell your product or perform the service you intend to provide. Your sales strategy should be specific. Analyze how many sales reps you  need to hire and how to recruit  and onboard them. Be sure to include your sales target.

Request for Funding

If you need funding, this section will focus on how much money  you need to start your business and how you plan to use the raised capital. If you need additional funding  to complete other important projects, we encourage you to include your timeline here.

Financial Projections

In this final section, we break down the financial goals and expectations we set based on our market research. Report projected revenue for the first 12 months and projected annual revenue for fiscal years 2, 3, 4, and 5. 

If you are looking to apply for a personal or small business loan, you can always add an appendix or other section that provides additional financial or background information.