First, account for start up costs like real estate, equipment, and your employees. You’ll also determine profitablity and declare your financial projections. In this section, present a financial analysis of all the capital you need to start, run, and grow your business. Financial considerationsīreak out the calculator and open your spreadsheets, it’s time for the money talk. Do you need to work with suppliers to stock your inventory or will you invest in drop shipping methods? Do you need to bring on team members to manage the front desk? Detail all those things here, and how you’re going to manage them.
Here, you need to present a clear picture of how you’re going to get up and running and then manage day-to-day operations. Be sure to include any copyrights, as well as research and any associated development that might be required to offer your product or service. This section details exactly what type of service or product you’re offering. If you don’t currently have competition, detail how you’re going to stay ahead of the pack should other businesses enter the fray. Perhaps it’s through offering early morning classes or more competitive rates. Walk through how you’re going to differentiate yourself from the competition. What are they doing well, and where are they falling short? To use the same spin studio example, perhaps there’s a popular kickboxing class you’ll be competing with for clients. Take an eagle-eyed look at your competitors in the space. Competitive analysisĪ competitive analysis is the strategic research outlining information about competitors in the space. Because this section should be chock-full of data and analysis, it requires some research. What are the weaknesses or voids, and how will your business fill them? For example, the fact that there are currently no spin classes in your city, coupled with the skyrocketing national popularity of this form of exercise, indicates there will be demand and potential customers in the area. What’s the market you’re entering? Coffee in Austin? Fitness studios in Syracuse? In this section, describe the current landscape of the market and identify your target market. If a stranger asked you to describe your business on the spot, what would you say? Here, you might also include where you see the most potential for your business, and why. Your business description is like your elevator pitch and conveys your business idea in a concise manner. All the points you make in subsequent sections bubble up to your executive summary, so it may be a good idea to write this last, after you’ve thoroughly researched all apsects of your business. Because it’s what people often read first, you want to make a good first impression and clearly state your business concept. The executive summary is like a top-line description of your business and how you’re going to accomplish your goals. To give you some structure as you create your business plan, here’s a rundown of the sections to include: An executive summary
They also include graphs and charts where appropriate. And in terms of length most business plans weigh in at between 15 to 25 pages. But there are a few key sections that business plans generally include.