7 Components Every Business Plan Should Have
by Summer Alexander on August 8,2013
I know what you are thinking: “If I’m not seeking outside investment where there are lot of penny stocks to watch, do I really need a business plan?” ….And you know what I’m going to say: “Yes!”
Your business plan is the framework for your company. It sets the direction your business will go, how it will get there, and helps you to identify how you will know when you’ve arrived.
Every business plan doesn’t have to look the same but for the most part each should have a few basic components. In today’s post I’ll share with you the 7 must have components for every business plan.
So let’s dig in……
- Executive Summary – This is typically 1-2 pages in the beginning of your business plan that sum up what your company does, who they do it for, where the company is going, the team that is going to help the company get there and most importantly how the company will make money.
- Mission/Vision Statement – Your mission statement is a brief description of why your company exists including who the company serves and what value the company provides for them. The vision statement is all of that plus an overview of where you see the company in a few years.
- Market Analysis – This section should answer the questions: why you, why this product/service, why now and how.
- Marketing Plan – Who are your customers? Why should/will they buy from you instead of a competitor? How do you know? How will they learn about your company?
- Revenue Projections – The revenue projections should answer the questions: how much money do you anticipating making and in what time frame. If you will need outside funds at what point do you anticipate being able to repay those funds? How long before the company breaks even? Makes a profit?
- S.W.O.T. Analysis – The Strengths, Weaknesses, Opportunities and Threats analysis should sum up your company’s greatest assets, the areas where your company is vulnerable in the marketplace, the external opportunities in the marketplace that may benefit the company and the potential external roadblocks to the company’s success.
- back office services Team Descriptions – This section should answer the questions: who will help your company to become successful and what qualifies them to do so?
Have you completed your business plan? If not click here to download our free fill-in-the-blank business plan template.