Business Plan and Start Up Newsletter Issue #1076 – Five Crucial Components of a Business Plan
June 23, 2011
Business Plan And Start Up Newsletter
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ June 2011
Written by Shaunta Pleasant
President, TL Manage Inc.
Everything banks, lenders and the SBA
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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
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
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
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!
This eBook is free and is well worth your time reading it, if you are
new to the world of online business, have a website that you are not
seeing any growth on or even if you have a successful online business
and simply want to open your mind to some new ideas, read it then read