What should I include in a business plan?
If you’re starting a business, it’s always wise to consult with a firm like TruPoint Accounting & Tax which specializes in creating thorough business plans for various types of businesses. However, it doesn’t hurt to create your own basic plan as you are just getting started. This format generally serves a guide for most business plans and can be adapted to any specific type of business.
A basic plan can be broken down into five segments.
- Introduction
- Marketing
- Financial Management
- Operations
- Concluding Statement
Q: What to include in the introduction?
A: The introductory section of your business plan should give a detailed description of the business and its goals, discuss its ownership and legal structure, list the skills and experience you bring to the business, and identify the competitive advantage your business possesses.
Q: What to include in the marketing segment?
A: In the marketing section, you should discuss what products/services your business offers and the customer demand for them. Furthermore, this section should identify your market and discuss its size and locations. Finally, you should explain various advertising, marketing, and pricing strategies you plan to utilize.
Q: What to include in the Financial Management segment?
A: In this section, explain the source and amount of initial equity capital. Also, develop a monthly operating budget for the first year as well as an expected return on investment, or ROI, and monthly cash flow for the first year. Next, provide projected income statements and balance sheets for a two-year period, and discuss your break-even point. Explain your personal balance sheet and method of compensation. Discuss who will maintain your accounting records and how they will be kept. Finally, provide “what if” statements that address alternative approaches to any problem that may develop.
Q: What to include in the marketing segment?
A: This section explains how the business will be managed on a day-to-day basis. It should cover hiring and personnel procedures, insurance, lease or rent agreements. It should also account for the equipment necessary to produce your products or services and for production and delivery of products and services.
Q: What to include in your concluding statement?
A: In the ending summary statement, summarize your business goals and objectives and express your commitment to the success of your business. Also, be specific as to how you plan to achieve your goals.
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