Now that you understand why you need a business plan and
you've spent some time doing your homework gathering the information
you need to create one, it's time to roll up your sleeves and get
everything down on paper. The following pages will describe in detail
the seven essential sections of a business plan: what you should
include, what you shouldn't include, how to work the numbers and
additional resources you can turn to for help. With that in mind, jump
right in.
Within the overall outline of the business plan, the executive
summary will follow the title page. The summary should tell the reader
what you want. This is very important. All too often, what the business
owner desires is buried on page eight. Clearly state what you're asking
for in the summary.
The business description usually begins with a short description of
the industry. When describing the industry, discuss the present outlook
as well as future possibilities. You should also provide information on
all the various markets within the industry, including any new products
or developments that will benefit or adversely affect your business.
Market strategies are the result of a meticulous market analysis. A
market analysis forces the entrepreneur to become familiar with all
aspects of the market so that the target market can be defined and the
company can be positioned in order to garner its share of sales.
The purpose of the competitive analysis is to determine the
strengths and weaknesses of the competitors within your market,
strategies that will provide you with a distinct advantage, the barriers
that can be developed in order to prevent competition from entering
your market, and any weaknesses that can be exploited within the product
development cycle.
The purpose of the design and development plan section is to provide
investors with a description of the product's design, chart its
development within the context of production, marketing and the company
itself, and create a development budget that will enable the company to
reach its goals.
The operations and management plan is designed to describe just how
the business functions on a continuing basis. The operations plan will
highlight the logistics of the organization such as the various
responsibilities of the management team, the tasks assigned to each
division within the company, and capital and expense requirements
related to the operations of the business.
Financial data is always at the back of the business plan, but that
doesn't mean it's any less important than up-front material such as the
business concept and the management team.
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