- The executive summary is the most important part of a good business plan. It's the first thing a potential lender or investor will read, and if it's not engaging, it could be the only part that is read. The executive summary is a two-page or three-page overview of your business plan. It includes information about your company history, the current state of the business and where you envision the business in the future. The executive summary includes your mission statement and what sets you apart from the competition. This section of your business plan should be engaging and give the reader the desire to learn more about your business.
- While your executive summary gives a concise overview of your business, the next 10 pages to 20 pages are the meat of the plan. There are several sections that should be included. The market analysis section should highlight the industry in which your business is competing. It should include research you have done to show the need for your product/service as well as an analysis of the competition. The company description section should include a summary of how all the different parts of your business fit together. The organization and management section illustrates your business structure as well as informational profiles for everyone on your management team. This section shows your experience and builds investor confidence. The marketing and sales section should detail how you plan to attract and retain customers and continue to build your brand. The service/product section describes in detail what your business offers and what the value proposition is to your customers. This section details the benefits your products or services offer. The financials section includes both historical financial data as well as prospective data and financial projections based on your research of the market.
- If your business plan's purpose is to attract investors, the funding request section is where you outline the amount of funding you are looking for along with a breakdown of how those funds will be used. You can include more than one financing scenario. The funding request should also include information on how the funding will position the business for profits and therefore a return on investment for lenders. If you have funding for your business but want your business plan to serve as your road map for operations, the funding request section is not necessary.
- The appendix is not distributed to anyone who reads your plan. It's more like a supporting document for potential investors or lenders who require additional information to influence their decisions. Some items that can be included in the appendix include your credit history, pictures or illustrations of products, resumes for key personnel, details from market research, legal documents and a list of individuals who act in a consultant capacity, such as your attorney or accountant.
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