What is a Business Plan?
A business plan is a dynamic marketing tool that contains important information about your business. It should be updated as often as necessary to reflect the current focus and long-term plans or your business, and whenever your business experiences noteworthy growth.
The Main Purpose of a Business Plan
To secure loans, attract investors, or apply for grants, you need to have a current business plan. A business plan should be truthful and contain accurate information about your business, but it should be written as a sales pitch about your company.
Key Elements of an Effective Business Plan
There is no “one-size-fits-all” approach to preparing a small business plan but all plans do contain some information in common. The basic elements that you need to include in your business plan are:
- Executive Summary
- The Industry
- Market Analysis
- Competitive Analysis
- Marketing Plan
- Management Plan
- Operating Plan
- Financial Plan
Presentation of Your Small Business Plan
A small business plan should always be typed, and free from typographical errors. If you type your own business plan, have someone else proofread it for you. After you make any corrections – have it proofread again!
The information in your business plan should be presented in a logical format that flows from one topic to the next. It should include a table of contents, and an index listing any appendices and exhibits. The easier it is for the reader to find information, the more likely you are to get a positive message across about your business.
You can present your business plan in a simple report format with a cover sheet, but some companies have their business plans professionally printed and placed in a portfolio cover. While this may look impressive, it can get expensive if you update your business plan often.
