BUSINESS PLAN

A business plan is a very important and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve short-term and long-term objectives.

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In this section, we will walk you through the components of a good business plan.

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EXECUTIVE SUMMARY

The purpose of the executive summary is to convince the audience to read the whole plan. It should highlight the strengths and objectives of the plan (return on investment, sales, profit, market share, jobs created, community
benefits, etc.).

 

Include a brief description of the business and its industry, as well as an explanation of the marketing opportunities available.

 

NOTE: Write this section last. It is an overview of your entire business plan.

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COMPANY BACKGROUND

Should include name, nature of business, history, affiliates, stage of development, unique features of products or services, any proprietary position (patents experience) and location. This is just a brief overview of the company description.

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PRODUCT OR SERVICE DESCRIPTION

Create a list of every service and/or product that will be offered through your business. Be as descriptive as possible so that the reader will know without any question what you will be providing to your customers.

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MARKETING ANALYSIS/STRATEGY

Provide an in-depth analysis of the market for the product(s) and/or service(s) to be sold. Include the following:

• Marketing Profile

  • Competition (be specific on location, pricing and products/services).

  • Trade/Service Area (what area will you market to).

  • Customer Profile (describe the actual and potential purchasers of the product or service by market segment).

  • Market Size (estimate the size of the total current market for your products and services, such as population of each target market).

• Market Plan

  • Provide a detailed description of how the business will obtain its estimated market share and achieve its sales objectives. Discuss your overall marketing strategies and plans and implementation time lines for:

    • Pricing (of each product or service provided).

    • Promotion (what forms of marketing will your business use).

    • Marketing Timeline (make a planned time line for marketing plan).

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MANAGEMENT

• A listing of key managers, directors and principal owners, including detailed resumes.

• Organizational structure (sole proprietorship, LLC, corporation).

• Compensation (plan for paying yourself).

• Plans for future staff

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OPERATIONS PLAN

• Space and equipment requirement.

• Working capital requirement.

• Labor force.

• Geographic location advantages.

• Manufacturing aspects, sources of supplies, etc.

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PROJECT SCHEDULE/GOALS

• Provide an overall schedule of the specific activities necessary to start the business or implement the project and achieve its projected level of profitability.

• Set sales goals within each section.

• This is your business timeline and will help you stay on track in order to be successful.

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FINANCIAL PROJECTIONS

• Financial Projections for 1 Year (broken down monthly).

• Financial Projections for 3 Years (broken down yearly).

 

While these numbers are projections, you must be able to explain how you came to these numbers.