If you hope to truly make an impression with your business, you need to be able to, first and foremost, nail your business plan. A quality business plan is crucial to the health and development of any business. But how do you even go about writing one?

Crafting that ideal business plan can seem like a daunting process, but in this article, we will break down exactly what a business plan is as well as the four parts of a business plan that you should spend the most time on.

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Business Risk

Definition

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Executive Summary

This is one of shortest sections of your business plan – most likely only two pages tops – but it is also one of the most important.

organization bios

Management and Organization Bios

Nothing inspires confidence in your company like demonstrating that you have the right people for the job.

parts of a business plan

Marketing Plan

financial plan

Financial Plan

The financial plan is the last part of your business plan, and this is where the majority of all the charts, graphs, and data come into play.

What Is Part Of A Business Plan?

You know that it is important, but what exactly is a business plan? It would probably be easier to describe what a business plan is not, since it encompasses so much.

Whether it is used to draw in potential lenders and investors, help educate interested parties on the ins and outs of your company, or even work as a training tool for new employees, a business plan lays out pretty much all of the aspects of your business. It tells you where exactly your business is headed, looking at everything from your business operations to your management structure to your marketing strategy.

To craft that right business plan, you will also want to choose the right template. A quick Google search will turn up dozens of templates to choose from, so be sure to do some browsing and find the right one for you.


The 4 Parts Of A Business Plan That You Should Focus On

According to the Small Business Association, there are a number of things that you should include in a business plan, but here are four parts of a business plan that you should spend the majority of your time honing and crafting.

Executive Summary

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This is one of shortest sections of your business plan – most likely only two pages tops – but it is also one of the most important. Why? Because it is essentially the elevator pitch for your business plan. If readers are not immediately grabbed by the executive summary, then they will likely not even continue reading.

With this in mind, you want your executive summary to be chock-full of persuasive and engaging language. Your summary should be presenting the problem in the current market and elevating your business as the solution, while weaving in the financial data and market research that you will delve into with the plan itself.

Even though your summary is one of the first things your readers will see when they look at your business plan, it is important to wait until after you have written your entire plan before you write the summary.

Management And Organization Bios

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Nothing inspires confidence in your company like demonstrating that you have the right people for the job. When describing yourself and the other members of your management team, you want to particularly focus on your requisite experience and skills. Bios should be as thorough as possible and no less than a page long. You want to not only describe the past experience of members of management, but also examine how the current roles within your company all work together to create one, cohesive unit.

Marketing Plan

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For it to truly be effective, a marketing plan needs to include a number of elements, so this section of your business plan will likely be the most time consuming.

First, you need to probe into market analysis. This examines the size of the market and pinpoints the ideal customer within that market. Next comes the competitive analysis portion, which examines a variety of competitors and looks at their strengths, weaknesses, pricing, distribution strategies, and much more.

 Finally, you will need to present your marketing action plan. This lays out the actual steps you will take to implement your marketing strategy.

When condensed here, it all seems pretty straightforward, but your marketing plan will require plenty of thorough research on your part.

Financial Plan

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The financial plan is the last part of your business plan, and this is where the majority of all the charts, graphs, and data come into play.

It is important to lay out the past five years or so of financial data (including all of the necessary financial statements) while also forecasting your finances five years into the future.  Since the majority of the financial portion of your business plan with be numbers and figures, you want to include a brief summary of the plan that breaks it down in words.

Having A Thorough Business Plan Is Crucial To The Success Of Your Company

You may have the most enticing business model in the world, but if you cannot present that model in a well-developed business plan, then the right people may not even have the chance to appreciate it. Crafting a business plan should be a thorough process and one that will require a good deal of research by and collaboration with the appropriate parties.

By the time of the business plan’s completion, you should be confident that your business is one step closer to substantial growth and profitability.


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