It’s common for entrepreneurs to ask the question, “Why do I need a business plan?” The simple answer is that it’s nearly impossible to get any type of funding for your business without a quality and thorough business plan. Banks, venture capitalists, and angel investors generally won’t even speak to you if you don’t have a business plan. They need to make sure you fully understand your business before you try to explain it to them.
Additionally, having a business plan is important to guide you in the early days of your new business. Starting a new business is a major step and it’s important to have a quality business plan to understand the concept, the market, and the risks involved.
The business plan can also be used a feasibility analysis. Business plans should always include industry and market information. Without a thorough study of your customer and their ability/willingness to purchase your product, you don’t know if your business is really sustainable.
A typical business plan is going to include the following sections:
1. Executive Summary
2. The Company (in-depth description of the products/services provided)
3. The Industry (a thorough study of the industry and how your business fits)
4. Market Analysis (a collection of information on your potential customer base)
5. Competition (explaining the competitive factors in the market and how you can gain an advantage)
6. Economics of the Business (basic financial picture of the new business)
7. Critical Risks and Problems (an understanding of the risks involved and how the business will get past these issues)
8. Management Team (a detailed biography of key management personnel and their qualifications)
9. Marketing Strategy (a plan to market the business to the target customer base)
For many potential new business owners, the process can be intimidating. Hire a professional and have it done right. Call us now at 972-774-4402 or fill out our contact form.