An essential part of starting a new business is preparing a small business plan. This effectively summarizes all of the operations and goals of your new organization in a clear, concise manner. Lenders, potential partners, and even the occasional client will want to see your business plan. It’s important to have a well-written business plan on file.
There are seven main parts to an effective business plan.
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- Executive Summary – a one to two page summary of your business plan.
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- Company Description – this is where you would put your mission statement and a basic description of what your company is and does.
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- Product or Service – describe any products and services you will provide and how you intend to do so.
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- Market Analysis – show why there is a need for your company in the relevant market.
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- Strategy and Implementation – how will you run your business? Explain how you will secure customers, resources and skilled labor. Then explain how you will implement your company’s goals.
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- Management Team – who will be in charge? Who will be held responsible? How will accountability and the assignment and completion of duties be managed?
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- Financial Plan – show and explain all anticipated income sources. How will you generate income and how will you manage expenses. Your financial plan is the most important part of your business plan. Will you be purchasing small business insurance? If yes, what type of business insurance will you need? What other expenses do you anticipate incurring?
For more information on how to develop an effective business plan, or for help starting your new business, visit the Small Business Association Website.