Creating Your First Business Plan

All businesses need a business plan, especially when you are getting started. They are essential so that you can keep your business on track, obtain funding, and have success. The idea of writing a business plan can be overwhelming, but you can break it down into the following sections to cover everything you need.

Executive Summary
The executive summary is a brief overview that tells people what your company is and how it will be successful. You should include a general outline of your mission statement, what you offer, and basic information about your leadership, employees, and location. You can also include basic financial information.

Company Description
This section will include detailed information about your company. Describe what problems your products and services will solve, identify who your target customers are, and explain what sets you apart from other companies.

Market Analysis
Next, you will research your industry. Look up who your competitors are, what your industry outlook is, and name your target market. State what successful competitors are doing and how you can do it better. This section should show how you plan to offer products and services that can compete with what is out there.

Organization and Management
Next, you will discuss the legal structure of your company. Then, name the people who are in charge of different departments. Include their experience and how they will help to make your company successful.

Products and Services
This section should cover what products and services your company offers. You should explain what problems they seek to solve for customers and make sure that you include any plans for copyright or patent filings. This section should convince a reader that you have something to offer that will be in demand.

Marketing and Sales
In this section, describe your strategy for marketing and securing customers. Describe how you will turn prospects into loyal customers who continue to come back. You should include digital marketing plans along with any traditional or print advertising and offers that you plan to use.

Funding Request
This section is essential for people who are looking for funding. State what your requirements are, and show how much funding you need for the next five years. Include details about what you plan to use the funding for, such as buying equipment or materials, covering bills, paying salaries, and more. Show your plan to pay off the debt down the road, whether through profits or selling your company.

Financial Projections
If you are asking for funding, you will also want to have financial projections on your business plan. If you are already in business, include income statements, balance sheets, and cash flow statements for the last three to five years. You can also list any potential collateral that you have to guarantee a loan. You should provide your outlook for the next five years and forecast the same information.