The Seven Parts Of A Business Plan

If the time has come for you to write a business plan, you might be at a loss as to how you should proceed. Many people realize the importance of a business plan for a startup in need of a loan, but actually, a business plan is important for businesses at all points in their lives. A business plan gives your business direction and a definition of purpose, all in a tidy, organized document. These are the seven elements you will need in your business plan.

1) Executive Summary: The executive summary will sum up everything you said in the entire business plan, which means that it will be the last part you write, even though it comes first in the document.

2) Company Description: This part of the business plan will either detail your company's history or will detail your company's startup plans, depending on where you are in your company's lifetime.

3) Product or Service: While this section is straightforward - intended, of course, to describe what you sell or perform - make sure you keep the focus on customer benefits in this section.

4) Market Analysis: Especially if you need a loan, this is a very important section. In this section, you should prove your understanding of both the market and your customer's needs, as well as your plans to reach the customers.

5) Strategy and Implementation: In this section, make sure you avoid any vagueness. Give concrete details about your company's structure and strategies.

6) Management Team: As you dig into the backgrounds and histories of your key team members, this section can become an excellent selling point.

7) Financial Strategy: Especially if you are a startup company, you have to make sure you understand what you are doing in this section, providing detailed analysis and projections.

A good business plan can help you get your feet under you as a business, and if your business already has its feet under it, a good business plan can help you gain traction. On the other hand, a bad business plan can keep you from getting the money you need, and it can keep your business from moving forward.