Your executive summary should appear first in your business plan. You should summarize what you expect your company to achieve. Since your goal is to highlight what you want to discuss in the rest of the plan, the Small Business Administration suggests that you write this section at the end. A good executive summary is compelling.
Reveals the company's mission statement, along with a brief description of its products and services. It might also be a good idea to briefly explain why you're starting your company and include details about your experience in the industry you're starting out in. The company description includes key information about your business, your objectives and the target customers you want to serve. This is where you explain why your company stands out from other competitors in the industry and break down its strengths, including how it offers solutions to customers and the competitive advantages that will give your company an edge to succeed.
This is where you demonstrate that you have a key understanding of the ins and outs of the industry and the specific market you plan to enter. Here you will corroborate the strengths you highlighted in the description of your company with data and statistics that break down industry trends and issues. Show what other companies are doing and how they are succeeding or failing. Your market analysis should also help you visualize your target customers.
This includes how much money they earn, what their buying habits are, what services they want and need, among other preferences of target customers. Above all, numbers should help answer why your company can do better. A good business plan will present a clear comparison of your business with your direct and indirect competitors. This is where you demonstrate your knowledge of the industry by breaking down its strengths and weaknesses.
Your ultimate goal is to show how your business will position itself. And if there are any problems that may prevent you from going to market, such as high initial costs, this is where you'll need to be communicative. Your competitive analysis will go to the market analysis section. While the description of your company is an overview, a detailed breakdown of your products and services aims to provide a complementary but more comprehensive description of the products you are creating and selling, how long they could last, and how they will meet existing demand.
This last section breaks down the financial goals and expectations you have set based on market research. You will declare your anticipated income for the first 12 months and your projected annual earnings for the second, third, fourth and fifth years of business. Over the past 20 years, we've helped more than 1 million entrepreneurs and business owners write business plans. These plans have been used to raise funds and grow countless companies.
Working with all of these companies, we know the 10 elements of any great business plan. Providing a comprehensive assessment of each of these components is critical to attracting lenders, angel investors, venture capitalists, or other equity investors. Start with a cover that includes your company's name, logo, and contact information, as interested readers should have an easy way to find and contact you. After that, be sure to include the 10 parts of a business plan that are documented below.
The executive summary provides a succinct synopsis of the business plan and highlights the key points raised in. It often includes the company's mission statement and the description of products and services. I and many experts, including the Small Business Administration, recommend writing the executive summary one last time. The customer analysis section of the business plan evaluates the customer segments that the company serves.
In this section, the company must convey the needs of its target customers. Then, you must show how your products and services meet these needs to the point where the customer pays for them. Since 1999, Growthink has developed business plans for thousands of companies that have achieved resounding success. As you can imagine, the customer segments you choose will have a big impact on the type of business you operate, as different segments often have different needs.
If you need funding, this section focuses on how much money you need to set up your business and how you plan to use the capital you're raising. Describe the products and services your company will offer, providing sufficient detail for those who are not familiar with your industry. If you use the business plan to find investors, you'll need to provide a comprehensive explanation of your concept and how it fits in your industry. Don't forget to indicate whether your company will operate as a partnership, a sole proprietorship, or a company with a different ownership structure.
Also, whether you write it in a word processor or use business plan software, remember to update your plan at least once a year. Expertly and thoroughly analyzing these components in their business plan helps entrepreneurs to better understand their business opportunity and helps them convince investors that the opportunity may also be right for them. They can provide an objective view of the business plan and indicate areas where you may need to provide more comprehensive information. If you want to gain the financial autonomy needed to run a business or become an entrepreneur, a financial advisor can help you align your finances.
However, there are key components that every good plan must have, and it's always a good idea to provide a clear and accurate summary of your business objectives in your business plan. End with a summary that reaffirms the highlights of your plan and indicates your determination to succeed as a business owner. .
