It’s pretty cool that you want to start your own business. You are even ready to implement your ideas; right?
But wait! Are you well prepared with a business plan? If no, stop! Stop taking even one more sip of tea or coffee you’re holding. Don’t even think of getting your business cards printed. Don’t take any further steps. Freeze your cash and don’t spend even a penny until your business plan is ready.
Whether it’s your bootstrap business or want secure funding, a business plan should always be in place. Why? Because if it’s the blueprint of any start-up. A business plan not only helps in drawing in investors’ interest but lets you walk through every aspect securing the future.
But before you write a full-proof business plan, you need to include some crucial elements. Here are the 7 most important elements to include:
1. Executive summary
It’s the first and foremost element of any business plan. This section is where your project is clear and compelling. However, if it’s not, investors won’t go further reading it. So every entrepreneur has to make this part clear, concise and convincing.
It showcases the strength of your business plan. Also, a well-thought-out executive summary also explains how your venture will benefit the clients. When creating an executive summary, include these pointers.
- A clear and convincing mission statement (a description and your company’s end goals)
- Company info, founders along with their backgrounds
- Describe your products or services
- Explain financial possibilities
- If you are looking for funding, describe existing investors along with your own funds
2. Business concept
After executive summary convinces potential investors, it’s natural that they would go further to read more. That’s where you should include company description. Give a detailed overview of your business, customers and competitive advantages. Also, describe how your company is going to fulfill the gap between demand and supply in your niche.
3. Market analysis
As an entrepreneur, you should have a thorough knowledge of the marketplace in your niche. That’s where market analysis comes in. For example, if you are selling stationery, you will discuss the requirements of students and corporate employees you’re targeting. You will describe these groups in a convenient way. Imagine there are 250 students in the school on the left of your shop and 50 employees on the right. That is a narrow outline of your market. Here, you will also explain the pricing structure and how you will compete with those already in the same niche.
4. Company and management
Here you will explain the structure of your company. Describe the number of owners your business has. Will you employ people or work in your organization? What are the roles and responsibilities? How are these responsibilities divided between bosses and employees? Is there an incentive system? This section often includes a graph to visually symbolize these tasks.
5. Products and services
Every business revolves around a particular product or service. In this section, you will have to explain the product or service you offer. Describe the key features and specific benefits it has. Highlight how it’s different from what competitors are offering. For example, you are planning to open a salon. Your salon is the only one that offers particular products. You would like to highlight it here. Designhill can help you with the printed design if you want to highlight your products or services.
6. Marketing strategy
What’s your strategy for revenue boost? How will you implement your strategy to expand your business? This section discusses the marketing strategy and plans. If you have any franchise plans, then you can explain it here too. You also need to give a brief about the plans to advertise to your potential customers. Will you advertise through brochure design, viral marketing or online campaigns?
7. Funding needs
Now that the basic structure of your business has been explained, it’s time to explain the finding needs. Do not think too much. Unexpected costs can’t be predicted, so just give your best estimate. Back up this estimate with full-proof research.
Consider above-suggested elements to create a winning business plan. These elements work as a strong roadmap for a successful business plan.