Eight Things Your Business Plan Should Include
When you start a new business, you may consider drafting a business plan to create a roadmap for your new company’s first months. A business plan can help attract key talent, suppliers, core clients, and investors. However, a business plan should also touch on some key topics. Here are eight issues your business plan should address.
Executive Summary
An executive summary should come at the beginning of your business plan. Executive summaries provide readers with a picture of your business – who works on the business, what you do, and what you want to achieve. Your executive summary should include:
Your business’s name/DBA name
A mission statement
An overview of your product(s)/service(s)
The leadership/ownership team
Basic financial information
The executive summary should grab a reader’s attention and encourage them to continue reading the business plan.
Company Description
Your business plan should provide a detailed description of your company, including the company’s legal structure, history (if applicable), and future objectives. The description can also describe your company’s unique value proposition – what problem(s) your products or services solve and what makes your offerings stand out from competitors. Your company description can also provide a brief overview of your business’s target market or customer base.
Market Research/Analysis
A business plan can also provide detailed market research and analysis to support the plan’s theory for business success. Market research should address:
The industry’s history and outlook
Your company’s target market
Competition analysis, including what your competitors offer and how your goods/services compete against theirs
Market size
Target customer demographics
Customer buying behaviors
Your market research and analysis will signal to readers how well you understand your target market and the potential challenges you may face in reaching that target market with your products and services.
Organization and Management
A business plan should also describe your company’s organizational structure and employment setup. The plan can include a business structure chart, especially if the organization involves multiple legal entities. However, a business plan should identify your company’s key personnel and their roles, as well as company directors, advisors, and essential consultants who may help distinguish your business from the competition.
Product/Service Lines
Your business plan should inform readers about your company’s goods or services by explaining what they do and how they benefit your target customers. The description of your business’s goods or services can also address legal protections that provide your company with competitive advantages, including intellectual property or pipelines for future developments.
Marketing and Sales Strategies
A business plan can also address your company’s marketing and sales strategies to discuss how you plan to convert customers. For example, your plan may address online, D2C/B2B, or retail sales strategies and marketing plans to attract potential customers’ attention. Depending on the target audience for your business plan, a discussion of marketing and sales strategies may also cover topics such as branding, pricing, social media, and advertising outlets.
Financial Projections
When your business plan targets investors, vendors, or other business partners, you may include internal financial projections, such as outlooks for income, cash flow, balance sheets, profits, and break-even analysis. Financial projections help parties who invest in your business, whether with capital or through business partnerships, understand the viability of your business model.
Funding Requests
A business plan sent to prospective investors may also include a funding request, which should address how much your company plans to raise and how your business intends to use investment funds. Funding requests may also include projections for repaying investors or projected return on investment.
Contact a Business Attorney Today
Before developing a business plan for a new venture, consulting an experienced business attorney can help ensure you have a comprehensive plan that puts you in the best position for success. Contact Keating Law, PLC, today for an initial consultation with a knowledgeable business attorney to discuss what issues you should address in your business plan.