If you are a business owner looking to expand your business, or start a new one, you will need to write a comprehensive business plan. A business plan lays out the necessary information that potential investors need to know about the business. It is simply a proposal about what the business is, and what he business owner hopes to accomplish.
- Write a description of the business that includes the background and history. Provide a thorough, detailed description of the products and services you offer. This is a critical part of the proposal because this is what pulls investors in and makes them want to invest in your business. Other pertinent information for the business plan is to include date established, location, markets served and top level revenue projections. Finally, include the legal structure of the business, i.e., sole proprietorship, partnership, S or C corporation.
- Describe the marketing plan, which will tell the investors where their money is going. The plan must demonstrate that you understand the market, the potential for growth and how to position products and services in a profitable manner. The plan should include how your products and services are branded, priced, promoted and distributed.
- Describe the operations of the business. If you manufacture products, you should use flow charts and diagrams to describe the operation process in detail. If you provide services, describe how they are delivered and if you sell products, include the information in number two.
- Describe the staffing and executive team section, while also describing the organization of your internal management team. Identify important team members, while also describing their education, skills and backgrounds. Outline the ownership of the company, which includes shareholders and profit sharing plans.
- Write the financial section, which should include two years of detailed income statements. You should estimate revenues, cost of items sold, expenses and taxes.