Business plans are good for entrepreneurs starting a business who want to attract funding and established firms looking to expand into a new venture or grow their business. A business plan is a road map to the success of a business, many businesses fail every year because of improper planning. A good business plan eliminates this dilemma.
Purpose: The purpose of a business plan is to help determine the course of the business; where it should be in the future and where to place the resources in order to achieve that goal. It is a document that provides future lenders and investors with proof of the entrepreneurs’ credibility. Thus, making them better candidates for funding.
Length: A Business plan wording and formatting should be straight forward and simple. The business plan should not be more than 40 pages. Summary tables and business charts should be used to make the numbers easy to read and grasp. No more than two fonts should be used. Font size should be at least 11 or 12 point size. Page breaks should be used to separate pages and charts.
Objectives: The main objective of a business plan is to establish revenue projections for the business and provide details on how the business will acquire the revenue.
BUSINESS PLAN FORMAT
A) Executive Summary
This is the first section of a business plan. This section is a brief overall summary of the business. It will define the nature of the business. The executive summary should be the last thing written. Once the rest of the components of a business plan have be written, entrepreneurs will have a clearer sense of what to write as their executive summary. The executive summary contains the following:
Mission Statement- This is where the business plan states how the customer will benefit from what the business has to offer. The business plan needs to state what products and services the company will be providing.
Objective – This is what entrepreneurs expect the business to accomplish, basically setting goals for the company.
B) Company Description
In this section, the business plan will go over a detail description of the business. The company description section contains the following:
Ownership – What type of ownership will the company be: sole proprietary, partnership, or corporation.