10 Essential Components for Your Business Plan

Business plans are the key to success of any new endeavor. Entrepreneurs should dedicate time to create them, regardless of whether they’re searching for investors or not. Business plans serve as the framework for your company and provide standards to keep track of how for you are from your goals. As an entrepreneur and investor it’s important to outline your business plan carefully and consider all of the variables.

Obtaining input from a third party is a great way to get an objective view. Working with mentors, business partners, and colleagues on your plan is beneficial in the sense that they can point out holes so you can adjust them accordingly.

In the business world, the size and scope of your business plan depends on your goals. If you’re preparing it for investors, you should make a more detailed plan, considering that they may not be as familiar with your industry as you are. If you’re developing the plan for you and/or business associates it doesn’t have to be as detailed, but you should still outline your goals and express how you would like to achieve them.

Keep in mind your plan doesn’t have to be very lengthy. When developing your business plan include these 10 essential components:

1. A mission statement and/or vision statement. This will help you communicate what you’re trying to create.
2. A description of your company and product or service.
3. A description of how your product or service is different from competitors.
4. A market analysis that reviews the market you’re trying to enter, competitors, where you fit and what type of market share you believe you can secure.
5. A description of your management team, including your head team members experience and previous successes.
6. How you plan to market the product or service.
7. A SWOT (Strengths, Weakness, Opportunities and Threats) analysis of your company. This will confirm that you’re realistic and have considered opportunities and challenges.
8. Develop a cash flow statement that shows your comprehension of what your needs are now and what they will be in the future. A cash flow statement can also help you consider how money will impact the growth of your company.
9. Revenue projections.
10. A summary/conclusion that ties everything together

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