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Five
Crucial Components Of A Business Plan
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by:
Cavyl Stewart
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Copyright 2005 Cavyl Stewart
The format of a Business Plan is something that has been developed and
refined over the years and is something that should not be changed.
Like a good recipe, a business plan needs to include certain
ingredients to make it work.
When you create a business plan, don’t attempt to recreate its format.
Those reviewing this type of document have expectations you must meet.
If they do not see those crucial decision-making components, they’ll
see no reason to proceed with their review of your business plan, no
matter how great your business idea.
Executive Summary Section
Every business plan must begin with an Executive Summary section. A
well-written Executive Summary is critical to the success of the rest
of the document. Here is where you need to capture the attention of
your audience so that they will be compelled to read on. Remember, it’s
a summary, so each and every word must be carefully selected and
presented.
Use the Executive Summary section of your business plan to accurately
describe the nature of your business venture including the need that
you plan to fill. Show the reasons why people need your product or
service. Show this by including a brief analysis of the characteristics
of your potential market.
Describe the organization of your business including your management
team. Also, briefly describe your sales and marketing plan or approach.
Finally include the numbers that those reviewing your business plan
want to see – the amount of capital you seek, the carefully calculated
sales projections and your plan to repay the loan.
If you’ve captured your audience so far they’ll read on. Otherwise,
they’ll close the document and add your business plan to the heap of
other rejected ideas.
Devote the balance of your business plan to providing details of the
items outlined in the Executive Summary.
The Business Section
Be sure to include the legal name, physical address and detailed
description of the nature of your business. It’s important to keep the
description easy to read using common terminology. Never assume that
those reading your business plan have the same level of technical
knowledge that you do. Describe how you plan to better serve your
market than your competition is currently doing.
Market Analysis Section
An analysis of the market shows that you have done your homework. This
section is basically a summary of your Marketing Plan. It needs to show
the demand for your product or service, the proposed market, trends
within the industry, a description of your pricing plan and packaging
and a description of your company policies.
Financing Section
The Financing section must show that you are as committed to your
business venture as you expect those reading your business plan to be.
Show the amount of personal funds you are contributing and their
source. Also include the amount of capital you need and your plan to
repay this debt. Include all pertinent financial worksheets in this
section: annual income projections, a break-even worksheet, projected
cash flow statements and a balance sheet.
Management Section
Outline your organizational structure and management team here. Include
the legal structure of your business whether it is a partnership,
corporation or limited liability corporation. Include resumes and
biographies of key players on your management team. Show staffing
projection data for the next few years.
By now you’re probably thinking that you don’t need Business Plan just
yet. Well you do, and there is business plan building software that can
help you through this immense project. These software packages are easy
to use and affordable. Use one today and produce a professional-quality
Business Plan – including all critical components – tomorrow!
About the author:
Copyright © 2005 Cavyl Stewart. Get more software tips, strategies and
recommendations to help you create your business plan by signing up for
my Exclusive 100% free, 100% original content ecourse: "How To
Failure-Proof Your Business Instantly." To sign up please visit: http://www.find-small-business-software.com/ec_failure_proof_your_business.php
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