Thinking of starting a business is most likely a momentous and the most consequential aspect of an entrepreneur’s life. It is thrilling but also nerve-racking for the individual. The risk involved is high. There is probably a lot that you have put at stake for this business idea. Time, money, energy, fight with your wife, late-night coffees trying to stay awake, missing your child’s annual day performance, losing a girlfriend, or even not getting one because you were too busy trying to get a business idea together. The key elements of a business plan is a must.
What if all of this becomes a wasted effort? Anything and everything needs forethought and systematic planning. If there is no proper plan, the chances that the business idea will not work are very high. Do not worry, though; we have got your back. Here are the top ten tips to help you create the perfect elements of a business plan.
Top 10 Elements of A Business Plan
Here are the elements mentioned for a great business plan you gotta execute.
While this will be the first thing in the elements of a business plan, write it last. This is so that you can incorporate all the elements of a business plan in summary. Remember, it should not be more than a page. This is the first thing people will be reading. You do not want them to lose interest or fall asleep. The executive summary should essentially encompass why you want to start the company, what your objective is.
Include your mission statement and compelling description of your products or services. It is a summary at the end of the day. It gives your reader an idea about what the rest of the plan is going to say.
As the name suggests, this section will have all the necessary information about your company. Divide the company description into three sub-sections so you do not miss out on any important information regarding the company that can keep the reader interested.
- Mission Statement
The mission statement will include whats and whys. Why does your company exist? What is the purpose of your company? The emphasis is more on the why rather than the what. Chronicle the life of your business, heart, and soul to make the reader link with your business. Also, include why you think your product or service is worth buying? The history of the business is to give the reader an idea about how it has grown. Express the timeline of your business. When it began, all the milestones, development of the product or services. The objectives of the business are more for the people involved in it. For the reader, it is to understand the internal working, aims, and goals of it. These objectives help the employees feel directed towards something and make working more efficient.
This section should be aimed at explaining what sort of a market you will be competing in. Define your market reach and its potential. Expand the kind of market you are in and the high demand graph in the market. Define the kind of consumers you are marketing to and their demand graphs. It will help if you include research and links to support the arguments made about market growth.
The good elements of a business plan, is being aware of its competition and aims at eliminating it right from the beginning. Begin by identifying other companies that are playing in the same market. Draw up their strengths and weaknesses so that your business can learn from each.
Possibly plan to take advantage of the weakness. The idea of being prepared to face the competition gives you an advantage right from the beginning. A cheat to do this take a look at the competing company’s ‘about us’ page. Then try to think of ways that will set you apart from them.
Your Products and Services
This will describe what your company aims to give its consumers. Remember, this is where you begin the sale of your products and services. Define all the advantages of the product and service that you are selling. Now, explain why you will be doing the best job of selling it.
Marketing and Sales Strategies
Begin with how you intend to let the world know about your company and what it is offering. Draw a detailed plan about each platform you will target and how you will do so. After that, after the world knows about your company, how are you going to sell them your product or service? What will be the ideas to make a sale? How will the consumer fell obliged to buy what you are offering? Drawing a separate sales plan can also work. Adding information about how much financial investment will be directed to this can make a compelling argument.
This section of the elements of a business plan will be scrutinized by investors. They will want to know if you can use their money well to give them good returns. In simple terms, this will be your budget.
The company, as a startup, may not have other financial data to record here. The budget should at least be for three years. Do not promise unrealistic profits to attract investors. Do not promise that you cannot keep or that will be difficult to fulfill.
Organization and Management
Your company is not going to run itself. It will be run by people. Give enough credits to your team. For this, you will need to explain what team you intend to put together. If you are employing people specialized in fields, mention those. If there are rankers in your team or any achievements that employes have should be mentioned. This will make your reader believe that the team can do a good job, and they will be satisfied.
If you need funding, this section will be directed to investors. Make an official request for funding. Mention the exact amount you will be needing and how you intend to use it.
Be realistic, and do not use numbers you are not sure of. You can use a number range instead of pointing out definite numbers.
Appendix for Official Documents
As the last part of your elements of a business plan, compile all the documents that are related to this business. This will help investors and employes gauge the genuineness of the business. These documents can be permits, local deeds, licenses, legal documents, and such. Including a small contents table with a list of these documents can become a checklist for readers. It will also make life easier and more organized for you.
Here are the ten elements of a business plan you need to write a business plan. Be creative because you are trying to sell your idea. We are rooting for you!