Writing a Business Plan
This section offers an outline and some tips on the key elements of a good business plan. You should think through these issues and jot down your own ideas. There are many organizations, including AWED, that will help you develop your notes into an effective written document.A formal business plan is often critical in getting financing for your business--most lenders and investors will send you packing if you don't have one. Writing a plan is important even if you aren't looking for money because it forces you to think through you ideas in a careful, structured way.
A business plan is a road map for your business, explaining where you are, where you want to go, and how you expect to get there. Good planning is key to a successful business.
STRUCTURING YOUR PLAN
A comprehensive plan should include a Title Page and the following 10 sections:
- 1. Executive Summary
- This is the first section the reader will see. It's important to capture his or her attention or the rest of the plan may be ignored.
- 2. Company Description
- This section tells the reader in more detail what your business is all about--its location, function, history, size, etc.
- 3. Description of Product or Service
- This section provides a clear explanation of your product or service and its function.
- 4. Market Analysis
- This section describes the conditions and trends within the industry generally and the specific market and demand for your product.
- 5. Marketing Strategy
- This section describes how you plan to reach your customers and sell your product or service.
- 6. Operating Plan
- This section offers a detailed description of how you will make your product or service and how you will get it from your door to the customer. Includes timelines, staffing levels, and product cycles.
- 7. Management Team
- This section identifies the key people in your organization and explains how and why, based on their past experience, they will contribute to the success of your business. If you have an advisory team, also identify its members.
- 8. Funds Required and Expected Uses
- This section explains how much money you will need to run your business, how you will use it and why you need a loan or other financing. If you are seeking credit or equity financing, be specific about how much money you need.
- 9. Financial Statements
- These documents should demonstrate your understanding of basic accounting and financial concepts and how they apply to your business.
- 10. Appendices & Exhibits
- This section should document any issues that can't be included in the text: distribution agreements, contracts for the purchase of your product, your operating licenses, etc.
SOME GENERAL RULES
Here are some general rules to keep in mind when writing a business plan.
- Be Specific
- The Better Your Research, the Better Your Plan
- Show Your Plan
- A Business Plan is not Written in Stone
How to Ensure Your Business Plan Conveys a Compelling Message