If you want to have a good start with your business, or simply to attract investors, you need to create a well-thought business plan. Unfortunately, making one isn’t that simple if you don’t know what it should include. Therefore, if you want to find out which are the main elements of a business plan in order to gain success and attract investors, read the following lines.
If you want to attract outside funding, it’s essential to nail the executive summary element of the business plan. This section has to include highlights from all the sections that follow, giving a concise overview of the company. It’s better to write this introductory section last because it will enable you to summarize what you have already laid out.
In the business description section, you should write what your company does, why it was formed, how you will make money, what’s the mission of your business, and if there exist any strategic relationships to be leveraged. Make sure that you include all of these information pieces. Otherwise, you will seem unprepared.
In the market analysis section, you have to assess your competition and differentiate your business from them. Include projections and trends for your industry in general. Also, include the market’s size and growth potential. Afterward, par down to include a profile of your ideal customer. In case you did market research, include this information here. Including this will make you seem better prepared.
Management and organization
To win the confidence of your investor, you should discuss the backgrounds and qualifications of specific members of your management team. This is extremely important if you’re looking for outside funding. Many venture capitalists put more accent on the team instead of the product. Therefore, prove that you have an experienced and talented team, and they will surely want to do business with you.
In the sales strategy section, you should include pricing policy, distribution, and promotional efforts. Include all relevant insights about public relations, trade show attendance, website development, and sampling.
The final section of the business plan is the financial projections section. It quantifies what you have already mentioned about organization and marketing. Therefore, it makes sense to write it once you’re done with the other elements of the plan. This section should feature cash flow statements, balance sheets, and projected profit and loss statements.