Business plan is the first step to the success of any business. It helps you focus on your goals and provides the roadmap to your financing and makes the loan process easier. The key features of a robust business plan are:
Executive summary
Briefly explain about the owners and promoters of the business and their vision and mission. Your thoughts on how you will be successful. Finally, summarize your current financial state and future needs.
Goals and objectives
What’s the purpose of your business? Outline your key strategies and main goals for the next one to three years.
Company background or history
Summarize your company’s achievements and plans for growth. Describe any company strengths and weaknesses, opportunities and any significant changes that could impact the operation.
Ownership, management and human resources
Describe the ownership structure. Include each owner’s qualifications, history and your management reporting structure. You’ll also need to identify key employees, benefits, labour policy and a succession plan (if applicable).
Financial position and projections
Existing business should include financial statements from the past three to five years and a monthly cash-flow forecast for 12 to 24 months. Start-ups should include projected financial statements for the first three years of operation and a monthly cash-flow forecast for 24 months.
Products and services
Describe your product or service and what makes it marketable. Elaborate the unique features of your products and services.
Industry analysis
Identify your industry and describe its overall size, growth stage and trends.
Target market
Describe the potential size of your market. It helps to include popular market trends and customer profiles.
Competition
Identify primary competitors within your target market. List their strengths and weaknesses compared to yours.
Marketing and sales plan
Describe your marketing plan and distribution channels. Include the steps for attracting and retaining customers (if applicable).