Ingredients of a Business Plan

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What Goes Into a Business Plan?

Ingredients of a Business Plan

A business plan can be formal (if you're presenting it to investors or a bank) or informal (if it's just for your reference), but whatever style you write it in, there are certain components you should include.



Executive Summary:

Required for formal business plans, optional for informal plans.

This is the Cliff's Notes of the business plan. It gives an overview of the entire plan, and if you're asking for investment or financing, it lays out exactly what you're asking for. Keep it to no more than a half page, and be sure to include:



* Business Concept

* Financial Details

* Financial Requirements

* Current Business Stats

* Major achievements



Business Description:

Required for both formal and informal business plans.

The next section is an overview of both the business and the industry, as well as the outlook for growth and opportunities you may be able to take advantage of.



Marketing Strategies:

Required for both formal and informal business plans.

Here you lay out who your target market is and how you will go about marketing to them.



Competitive Analysis:

Required for formal business plans, optional for informal plans.

List your top three to five competitors and assess their strengths and weaknesses.



Developmental Plan:

Required for formal business plans, optional for informal plans.

This section outlines your product's design and how you plan to develop it.



Operations and Management:

Required for formal business plans, optional for informal plans.

Outline the operations organization and define the roles of each of the key players in your business. Discuss opportunities to grow your staff.



Finances:

Required for formal business plans, optional for informal plans.

Here you include all income statements, cash flow and balance sheet so investors can see what your assets and liabilities are.

   

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