Business Plan Elements

Business Plan Overview

• A business plan is a written document that outlines a company's core business activities, objectives, and strategies to achieve its goals.

Elements of a Business Plan

• Executive Summary: a brief overview of the business plan, outlining its key points and how the business will present itself to the public.
• Mission Statement: a brief summary of the business and its objectives.
• Company Information: introduces the founders with their biographies.
• Growth Projections: outlines and quantifies the earning potential of the business.
• Products or Services: describes what products and services are offered by the business.
• Financial Information: outlines the current capital of the company, including any current investors.
• Company Description: highlights the target clientele, competitive advantages, and the market void the business will fill.
• Market Analysis: outlines how the chosen industry functions.
• Organization and Management: focuses on the structure of the business.
• Goods and Services: a detailed description of the business's offerings.
• Marketing: outlines the growth strategy of the business.
• Financial Projections: outlines the financial goals of the business and how marketing and sales will lead to profit.

Introductory Elements

• Cover Page: provides basic information about the business and contact details.
• Executive Summary: determines whether readers want to learn more about the business.
• Table of Contents: provides a quick and easy way to find particular sections of the plan.

Creating an Effective Executive Summary

• Focus on the primary audience.
• Importance of a strong executive summary to grab lender attention.
• Provide a snapshot of the business.

Creating a Table of Contents

• Use page numbering, listing headings, and including subsections.
• Ensure proper formatting and update page numbers regularly.
• Review for accuracy.

Business Description

• Summarizes the company's purpose, what makes it unique, and its goals.
• Importance of business description: • Clarifies the company's purpose. • Serves as a communication tool. • Highlights competitive differentiation. • Aligns goals and objectives.