Make sure to clearly explain your projections, and match them to your funding requests. For the first year, be even more specific and use quarterly - or even monthly - projections. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. Provide a prospective financial outlook for the next five years. If you have other collateral you could put against a loan, make sure to list it now. If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. Your goal is to convince the reader that your business is stable and will be a financial success. Supplement your funding request with financial projections. Always include a description of your future strategic financial plans, like paying off debt or selling your business. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Give a detailed description of how you'll use your funds. Specify whether you want debt or equity, the terms you'd like applied, and the length of time your request will cover. Your goal is to clearly explain how much funding you’ll need over the next five years and what you'll use it for. If you're asking for funding, this is where you'll outline your funding requirements. You'll refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies. You'll also describe how a sale will actually happen. Your goal in this section is to describe how you'll attract and retain customers. Your strategy should evolve and change to fit your unique needs. There's no single way to approach a marketing strategy. If you're doing research and development for your service or product, explain it in detail. Share your plans for intellectual property, like copyright or patent filings. Explain how it benefits your customers and what the product lifecycle looks like. Service or product lineĭescribe what you sell or what service you offer. Consider including resumes and CVs of key members of your team. Show how each person's unique experience will contribute to the success of your venture. Use an organizational chart to lay out who's in charge of what in your company. State whether you have or intend to incorporate your business as a C or an S corporation, form a general or limited partnership, or if you're a sole proprietor or limited liability company (LLC). Tell your reader how your company will be structured and who will run it.ĭescribe the legal structure of your business. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions. In your market research, look for trends and themes. Competitive research will show you what other businesses are doing and what their strengths are. You'll need a good understanding of your industry outlook and target market. Are there experts on your team? Have you found the perfect location for your store? Your company description is the place to boast about your strengths. Be specific, and list out the consumers, organization, or businesses your company plans to serve.Įxplain the competitive advantages that will make your business a success. Go into detail about the problems your business solves. Use your company description to provide detailed information about your company. You should also include financial information and high-level growth plans if you plan to ask for financing. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. Executive summaryīriefly tell your reader what your company is and why it will be successful. Traditional business plans use some combination of these nine sections. Instead, use the sections that make the most sense for your business and your needs. When you write your business plan, you don’t have to stick to the exact business plan outline. You might prefer a traditional business plan format if you’re very detail-oriented, want a comprehensive plan, or plan to request financing from traditional sources. Market research and competitive analysis.

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