Starting a business can be a very rewarding experience, but it can also be quite overwhelming. There are many things to think about and accomplish so that you are able to achieve the success and popularity that you want. There is no one-size-fits-all guide to starting a business, however, there are steps you can follow to ensure you maximize your potential. With that being said, having a detailed and well-thought-out business plan can be the difference between your business thriving and failing. Below we will discuss some of the key components of a business plan, as listed in an article on Smart Asset.
- Executive Summary
This is the first aspect that should appear in your business plan. You will use it to summarize what your company desires to accomplish. The main goal of an executive summary is to highlight the different points that you are preparing to discuss throughout the plan; the Small Business Administration recommends that you write this section after completing everything else. The executive summary should be compelling and contain the mission statement and a description of the product or service.
- Company Description
In this section of the business plan, you should list detailed information about your company in general, the target market, and the specific goals that you aim to accomplish. You want to include the various reasons why your company will stand out in the market against the rest of the competitors, and the different competitive advantages your company possesses.
- Market Analysis
This section is important because the market is what will determine if your company succeeds or not. You want to use this section to demonstrate your understanding of the industry’s inner details and external factors surrounding it. This section should be able to help you visualize what kind of customers you are aiming to reach and the strengths your company has to do so.
- Financial Projections
This section might be one of the most crucial, especially if you are requesting a loan or funding to launch your business. This section should include a 12-month layout of your anticipated revenue during your first year. You also want to include what you project your company to make for the next five years. Use this section to list financial goals and expectations you have for your business as well.