The power, technology, and resources we have today have made it easier than ever to start a new company. I can now walk to local government offices and start a business that deals with emergency towing in Charlotte with more ease than it was a decade ago. While starting a company may seem easier now than ever before, entrepreneurs are faced with an uphill task from the moment they decide to get started. Any new business will need to compete with a pool of competitors to stand out and win.
Aspiring entrepreneurs who go blind, without having a clear plan on hiring, marketing, and finances are destined to face it rough, in building a successful company. Crafting a business plan is an essential element that should never be skipped.
Here are the key details you should include in your business plan.
After the cover page, we have an executive summary that gives a brief in one or two pages of your business, by highlighting the most crucial pieces of information to your readers. It is intended to grab the attention of your readers and summarized crucial information regarding your company with short and long-term goals. From the executive summary, you will expect to read about the mission statement, the company history, and leadership model, overview of competitive advantage, financial projection, company goals, among others.
Company and Business Description
This section provides a more thorough description of what your company is and why it exists. The major part of writing this section will entail defining the company purpose, what the business will be selling, the target market as well as a clear plan for success. You will find descriptions of mission and vision statements, core values, team, and organization structure, among others.
Product and service line
This category will help in providing a more in-depth overview of what products and services your business will be dealing with. Provide the name of each product or service you intend to engage in, purpose, and a description of how it works. Additionally, complete the process by adding the pricing model to your intent to apply.
At the market analysis section, you provide details about your audience to which you are marketing your business. It should include the size of your total addressable market, demographics, psychographics, and analysis of your location. You should come with a documentation of your marketing research by applying Porter’s Five Forces Analysis, or SWOT approach.
Unlike the market analysis section, the marketing plan explains and analysis all the tactical approaches you will use in reading out to your target audience. You will need to list the channels you will be advertising on as well as the organic marketing methods you will use for the growth of your business. After you come up with a comprehensive marketing plan, attach it to the appendix section.
Ultimately, you will need your business to grow, and this growth will come when you invite investors to your business. Investors will want to know two things; when will they earn their money back and when will they start seeing returns to their initial investment. You need to be clear and calculated in convincing investors on the same.