- Step 1: Detail executive summary Detail an executive summary with a brief mission statement. Include names of partners and employees, functions, services rendered, and business location.
- Step 2: Provide market analysis Provide a market analysis that reflects your knowledge of the industry, the industry's outlook, target markets, and an evaluation of the competition.
- TIP: Gathering information on regulatory restrictions that affect your business is essential.
- Step 3: Describe company Include a snapshot of the company with organization and management described, including salary and benefits. Add the ownership information, clarifying legal and practical involvement.
- Step 4: Define market strategy Define your market strategy with information on penetration, channels, and growth. State communication and advertising decisions and your overall sales strategy, identifying prospects.
- Step 5: Present products Present your product line, emphasizing distinct advantages with a target public. Give patent or copyright information. Relate any ongoing research and development.
- Step 6: Request the money When requesting an investment, present positive and negative funding scenarios and needs over the coming five years. Make capital expenditures, working capital, debt retirement, and acquisitions clear.
- TIP: It is better to be accurate and honest than to project successes that might not materialize.
- Step 7: Detail financials Detail your financials, historical and prospective, capturing realistic quarterly and yearly projections.
- Step 8: Add the appendix Add an appendix with supporting information. Provide credit history, resumes, references, market studies, licenses, leases, contracts, and names of consultants.
- FACT: Did you know? According to the Small Business Administration, only 67 percent of businesses make it past two years.
You Will Need
- A standard business plan form
- A market analysis
- Information on regulatory restrictions
- Knowledge of your industry