A business plan is a key document that any new business should produce. If you don’t have a plan for your business, how will you know if your business is performing as you expect? The business plan can be even more critical if you are seeking financing for your business. There are many templates available for business plans, but here are 5 things to include in each one.
1. An executive summary
This can be helpful, especially if you are looking for financial backing. A concise summary can be more attractive to a busy potential investor and allow them to have a very quick overview of whether or not yours is a business they would be interested in. By including the summary, you can increase the chances that your business plan will be revised.
2. Your products or services
What will you sell? You need to define this for many things, including your marketing strategy.
3. Your potential market and its size
How many customers are there for your company to sell, what general characteristics define your potential customers?
4. Your financial forecast
How much money will you need to invest, what will your running costs be, and what income will you get? All of these factors should be included in your business plan.
5. Risks for your company
Clearly identify the risks to your business success that you have identified. These could include things like competitive activity, environmental, legislative, changes in market trends, and more. Don’t just identify risks. You should consider what you can do to prevent these risks from having an impact on your business, either by taking steps now to avoid them or by having plans to deal with them should they occur. Include these plans in your business case.