How to Build Your Business Plan

by Tara Duggan
Building a business plan requires research and organization.

Building a business plan requires research and organization.

business plan 1 50409 image by pablo from

Building your business plan involves identifying opportunities to develop your products or services, and presenting a compelling business case so that potential investors have confidence in your ideas to provide funding. A successful business plan typically includes an executive summary, a market analysis, a company description, a product description and financial information.

1. Use word processing software to open a document to write your business plan. Start with the executive summary. Write a mission statement that explains what your business does. Identify the location of your business and any current investors. Provide a summary of your company’s financial statements. Describe your background and experience in developing your product or service. Convince your potential investors that you have what it takes to achieve success in your market. Ensure your executive summary spans no more than four pages.

2. Add a section on market analysis. Include information about the industry, including the overall outlook and details about your competition. Identify potential customers as specifically as possible. Show how customer needs can be met by your product. Identify any seasonal trends which may impact your sales. Set pricing and gross margin targets. List details about how you plan to market your product or service, such as print publications, online websites or radio and television commercials.

3. Estimate the lead time between when a customer places an order for your product and when you anticipate delivering it. Identify any regulatory restrictions associated with your industry. Use resources such as the Small Business Marketing website provided by the U.S. government to get tips on marketing a small business.

4. Add a section to describe your company. List the job functions and qualifications of individuals performing critical roles. If your location allows you to maintain a competitive advantage, include details about your company site. Include details about how you structure company activities, including manufacturing, sales and support.

5. Add a section about your product or service. Describe why customers will prefer your product over others and why you believe you can maintain a profitable business. List the features and benefits of your product or service. If you have a product prototype, describe it. Include information about any relevant copyrights or patents.

6. Add a section to request funding based on your market research and analysis of your financial needs to grow or develop your product line. Investors typically look for information, including income statements, forecasts, balance sheets, cash flow statements and budget projections.

7. Create a table of contents for your document to help readers get quickly to sections that interest them.

8. Print your document and send it to potential investors. Follow up with phone calls and emails to schedule meetings to discuss your business plan so that you can obtain the necessary funding required to establish and grow your business.

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