The purpose of a business plan is to help guide your business to success. It can also help you to get financial support for your business from financial organizations or from investors. The plan includes various sections, such as descriptions of operations, sales, and financials. In this article, we will go over the key sections of a business plan to help you to structure your own.

Executive Summary

The executive summary, which is 1-2 pages long, can be considered a crucial part of your business plan because it summarizes important sections of your whole plan, and is often the first thing that readers will look at. Therefore, although it appears near the beginning of your plan, it is normally written after the rest of the plan has been composed. It should capture your reader’s attention and make them want to read more. Here are the key elements of what the executive summary describes:

● The company, location, mission, products and services, management, and ownership.

● The target market and what your business will do for them.

● The industry, competition, and how the business will be competitive and gain customers.

● Financial expectations for the coming years and the amount of financial support needed for launch if any.

Overview of Business/Industry

The business/industry section of the business plan covers the following:

● A description of your industry and its sales and influencers, the biggest competitors, trends, demographics, how your business will fit into the overall industry landscape, and what part of the market it will focus on.

● How you will compete through lower costs, better products or services, or by offering something unique.

Market Analysis

In the market analysis, you need to demonstrate that you understand your target market. This includes being knowledgeable about areas such as:

● What your target market wants and how they are currently being served.
● The demographics and location of your target market.
● The size of your target market and your projected market share.

Include statistics to support your points.

Sales and Marketing Plan

The sales and marketing plan details information about your products or services, their benefits, and your strategy for making sales. Here are the key components of this section:

● Product or Service Offerings
● Pricing Strategy
● Sales and Distribution
● Advertising and Promotion

Ownership and Management Plan

The ownership and management part of your business plan discusses how the following areas of the business are structured and applied in your business:

● Ownership Structure
● Management Team
● External Resources and Services
● Human Resources
● Advisory board (if needed)

Operating Plan

The operational part of the plan covers areas such as facilities, supplies and inventory, staffing, equipment, production, and development.

Financial Plan

The financial plan discusses the financing for the business for launch, for after launch, and the expected expenses for the business. The plan should demonstrate how the business will expand and generate profit. It should include financial documents such as the following:

● Income Statements
● Cash Flow Projections
● Balance Sheet
● Breakeven Analysis

A coach can help you to create an effective business plan for your unique business needs and guide you to success. Get in touch today!