One of the very first things a business needs, is an exceptional business plan. Not only to understand how to structure and develop the company, but often times to raise funds. Business plans should be detailed yet succinct. Although business plans will vary depending on the type of venture, there are multiple elements that should never be missed when creating the perfect business plan. Here are the most essential elements:
- Executive Summary: This section should clearly state what the business owners hope to achieve. Goals and expectations should be outlined clearly for the people reading the business plan. The Executive Summary is just that, a summary, so it should mention the main points that will be included in the remainder of the plan. This section should be no longer than a page, and should contain the following: the business concept, financial features (sales, profit, cash flow, etc.), financial requirements (capital needed for business and how it would be used), current business details, key developments.
- Business Description: Describe the business model in detail including how the company will be structured, what products or services your company will offer, what differentiates your particular business, and the legal form of your business (LLC, Corporation, etc.).
- Revenue Model: Demonstrate why your business is or will be profitable and your revenue model. Include future developments and specific revenue goals.
- Market Analysis: Include substantial details about your target market and statistics from competitors to give an example of how your business would compare. Define the feasible market for your venture by calculating how much of the current market your product or service will appeal to. Market Analysis should give you clues as to what the pricing for your product or service should be, another essential element for your business plan.
- Marketing Plan: Define how you will promote your product or service and what the expected conversion rate is. Include details about your marketing budget and the expected ROI of each marketing action. Outline what audience each marketing effort will reach.
- Company Structure: Include how many employees your company will need, and what role and salary each employee will have. It is important to explain the logistics of your company and how it will be operated.
- Operational Costs: Include a comprehensive budget of how much capital your company will need to achieve the goals you previously outlined. Include details about how each dollar will be spent: marketing, salaries, rent, utilities, travel, etc.
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