The Business Plan

THE BUSINESS PLAN

What goes in a business plan?

The body of the business plan can be divided into four distinct sections:
1) The description of the business
2) The marketing plan
3) The financial management plan
4) The management plan
5) Addenda to the business plan should include the executive summary, supporting documents and financial projections

THE BUSINESS PLAN - DESCRIPTION OF THE BUSINESS

Provide a detailed description of your business. An excellent question to ask yourself is: "What business am I in?" In answering this question include your products, market and services as well as a thorough description of what makes your business unique.

The business description section is divided into four primary sections. Section 1 actually describes your business, Section 2 the product or service you will be offering, Section 3 Marketing and Research and Section 4 Financials.

1. Business Description

A cover sheet goes before the description. It includes the name, address and telephone number of the business and the names of all principals. In the description of your business, describe the unique aspects and how or why they will appeal to consumers.

When describing your business, generally you should explain:

1. Legal - business structure: proprietorship, partnership, corporation. The licenses or permits you will need.
2. Business type: merchandizing, manufacturing or service
3. Define your product or service is
4. Is it a new independent business, a takeover, an expansion, a franchise?
5. How your business will be profitable. Explain the growth opportunities?
6. Research and Marketing
7. Financial Current and Projections

The description of your business should clearly identify goals and objectives and it should clarify why you are, or why you want to be, in business.

THE BUSINESS PLAN - 2. Product/Service

Try to describe the benefits of your goods and services from your customers' perspective. Successful business owners know or at least have an idea of what their customers want or expect from them. This type of anticipation can be helpful in building customer satisfaction and loyalty. And, it certainly is a good strategy for beating the competition or retaining you competitiveness. Describe:

1. What you are selling.
2. How your product or service will benefit the customer.
3. Which products/services are in demand; if there will be a steady flow of cash.
4. What is different about the product or service your business is offering.

Coming up next Marketing!