If you have a start-up business that needs funding, a great business plan is one of the best ways to persuade investors to invest in your company.
A business plan lays down the structural, functional, operational, and financial foundations of a business. It shouldn’t be something you conjure up at the last minute, otherwise, you will risk losing your investors because they won’t feel your plan was compelling.
Here are some practical tips for drafting an excellent business plan.
Key Elements In Your Business Plan
It doesn’t matter if you have the most impressive business idea in the world if you don’t include the key elements in the business plan. These elements throw light on several details and practical matters regarding operating structure, finances, marketing, and other relevant information.
While formulating your business plan, elaborate on each element and if necessary back it up with the essential documents. If you need professional assistance for drafting your business plan, you can take the help of expert writers who have previous experience and know-how to formulate one properly.
Executive Summary
The executive summary is the first part of your business plan. It should serve as a brief overview of your entire plan and tell your investors what exactly they would be investing in. It should be precise but contain enough detail to capture your investor’s attention.
Include these essential points in the Executive Summary,
- Business Name
- Location
- Products or Services Your Business Offers
- Mission and Vision
- Business Goals
Company or Business Description
Provide a comprehensive description of your company and the goods or services it will be providing. Include details about the kind of industry or people your business serves along with the goals, objectives, target consumer base, and prospects.
It’s the chance you will have to prove to your investors how unique your company is and how it differs from the competitors.
Market Analysis
The market analysis should be a thorough and well-researched analysis of the specific market you intend to enter.
You should be knowledgeable about the market and compile accurate statistical data to demonstrate how your company will enter the industry and achieve its targets.
Include relevant details like geographical locations and demographics in your analysis.
Management & Organization
Under this, you will describe how your company is structured and its management strategy. You should specify the legal structure of your company – whether it is a limited partnership, S corporation, C corporation, LLC, or other.
Explain how your company will be managed and list the different managerial positions with the responsibilities assigned to each. Give an overview of the hierarchy of your company and list the profiles of the board of directors.
Description of Service or Product
Here you will give an accurate description of your product or service and its various features. You should include manufacturing information and the supplier names along with financial and production data.
If your product has a patent or is pending make sure you mention that as well.
Marketing Strategy
A poor marketing plan will definitely leave a bad impression on your investors. So make sure you lay down a strong plan which is practical and suitable for your business.
Give details on how you will promote your product and reach your target audience. Mention the budget which is allocated for marketing.
Sales Plan
Make sure you are specific with your sales strategy. Vague information will give the impression that you don’t know what you are talking about. Mention accurate figures and sales targets.
Funding
If you want funds, you should explain how much you want and how you would use that money to grow your business.
Financial Plan
Your financial plan should include important information like,
- The financial statements of your company.
- Expected revenue for the upcoming year and the next few years.
- Current funding sources.
- Financial goals.
- Loans which you have taken, if any.
Conclusion
After you finish writing your business plan check it thoroughly for any errors, misinformation, or inaccurate statistics. You can ask a professional to go over your plan and verify it for you before you submit it officially.