A business plan is your company’s roadmap designed for a specific time. This document is essential because it’s critical to the success of your business. And if you are trying to get investors for your startup, you need to have a good business plan. So,here are some important sections every business plan should have.
#1. Executive Summary
The executive summary is the first and most important section of the business plan. It gives an overview of your company, its framework, and its purpose.
The executive summary is a sensitive aspect of your business plan. So, try to give it maximum attention.
If you want to attract potential investors with your plan, make this section as compelling as possible. Discuss the potential of your business and how your investors can benefit from it.
How you write your executive summary can give your potential investors the impression whether your business is worthy of their funds or not.
Therefore, an excellent executive summary should include;
- Mission State: It explains your business summary and objective.
- Give detailed information about the company; this includes the founders and their biographies.
- Your executive summary should also contain your business growth projection.
- The products or services your business will be offering.
#2. Company Description
Your company description is also one of the important sections every business plan should have.
It provides information about your ideal market, short and long-term growth strategy, and business history.
The description should specify the void your business is filling and your comparative advantage.
If possible, mention the momentum your company has made and your plan for the business.
Don’t just write your company’s description for writing sake. Try to make it compelling enough to attract investors.
Here are a few tips to help you write an impressive and compelling company description on your plan;
- Do thorough research on your industry and learn more about your competitors
- Describe the present and future state of your industry.
- It should contain your basic business information.
- Give details of how the business is going to make a profit. Remember, your investors are more interested in the numbers.
#3. Market Analysis
Market analysis is also among the important sections every business plan should have. It gives a quantitative and qualitative assessment of your market.
The market analysis basically outlines how your industry functions. It analyzes the market size (both in volume and value), customer segments, the competition, the buying pattern, the barrier to entry, regulations, and other essential elements.
For instance, if you are launching a video editing software, you would explain the needs of video creators in your niche.
Furthermore, you will need to describe the market size for the software, how you want to structure your price and strategies that will help you remain competitive in the industry.
#4. Organization and Management
Organization and management is an important element of your business plan. It talks about your business structure.
This section includes; the number of founders your company has, who will be in charge of the business operation, how you will delegate responsibilities, your promotional and incentive methods, etc.
If possible, use charts and graphs to represent some of these factors visually. It makes it easier for your potential investor to understand your business structure at a glance.
This section also describes the logistics of running your business, how you will hire new employees, and reassign tasks as the company grows.
#5. Goods and Services
The goods and services section is one of the sections every business plan should have. It goes by many names, depending on the nature of your business.
But try to make this section very convincing. Give a detailed description of your product or services, the result your audience will get from using them, and how it will impact them positively.
It’s also important to mention the uniqueness of your products or services and what makes them stand out.
#6. Marketing
Marketing is an element of your business plan you can’t ignore. This section will talk about your growth strategy, your business expansion plan, and the strategy to market your potential audience.
This section will also talk about your proposed marketing media, budget, your online and offline plans.
Generally, the marketing section of your business plan should contain the following information;
- Your target market demographics
- Target market psychographics
- Your target market size
- Lead generation strategy
- Conversion strategy
#7. Financial Projections
Your financial projection is one of the sections every business plan should have. This section expresses your business’s financial goals.
You will spend more time explaining how your marketing strategies, promotional efforts, and sales will eventually translate to profit.
To make this section more compelling, you would have to predict your income and estimated cost.
If you can use graphical representation, it will make your business plan much easier to understand.
Here are tips for creating an excellent financial projection;
- Create a sale projection
- Create a projection for your expenses
- Develop a balance sheet projection
- Create an income statement projection
- Create a cash flow projection
Read Also: 7 Smart Tips to manage Your Financial Life
Conclusion
These are the important sections every business plan should have. When you finally make up your mind to launch your startup, your business plan is the first serious step to take.
Most startups failed within their first and second years because of a faulty business plan. But you can change that narrative and do things differently.
Take time to develop a business plan that is not only perfect for your business but also attracts investors to fund your start.
