How To Build The Right Business Plan

The first thing that a person starting a business or one who is looking for venture capital needs to know is how to build the right business plan.Every business plan has seven components.They are the executive summary, company summary, product or service, market analysis, strategy, financial analysis and the executive team.

The first page in any business plan should be the executive summary.This is the summary of everything that is in the report.It should be no longer than one page.The points should be succinct and make the reader want to find out more about the proposed business.It is best to write this part last.The rest of the pages should include the other six sections mentioned, but those sections do not have to be put in any particular order.

The company summary should include the legal name of the company, the locations of offices and manufacturing plants and what product or service it offers.It should also include the length of time that the business and its history.If the business is a new business, it should include future plans.

The product or service portion of the business plan should include a description of what the business does and what it offers to the customer.The latter part is very important.Investors are going to want to know why someone is going to purchase the product or service in question.This can only be shown through the benefit that it offers to the customer and what problems it will solve.Showing a product's uniqueness and the market share that it can garner can help investors see its value.This section will also include how the product is made and how it will get distributed.

The market analysis shows potential investors that the entrepreneur has done his or her homework.It will include who the target customers are and how the business plans to reach them.This means that things like advertising and promotion plans are included in this section of the plan.It should include how it is going to get to customers.A description of why the product is better than the competition's product should also be written here.

The strategy portion of the business plan should include a timeline with deadlines for when things will be finished, especially as it relates to sales and distribution.It should also include which members of the management team are responsible for what parts of the plan as it relates to the timeline and how everything will be accomplished and tracked.As the old adage says - if you can't measure it, you can't manage it.

The financial analysis shows the company's assets and cash flow.It will also include a profit and loss table and earnings projections.

Even if the management team is only one person, the executive team still needs to have its own section.The section should detail the team members' accomplishments, focusing on previous relevant experiences and successes.Most companies are only as good as their management teams, so it is important to make this strong without embellishing - the internet makes it much easier to find any factual inaccuracies.

The last thing that anyone needs to know about how to build the right business plan is that it needs to be proofread.Nothing says incompetence like a document riddled with extra commas, poor grammar and spelling errors. If a business is to be taken seriously, it is necessary for that business to present a professional front.Getting a good editor or just another set of eyes can pay off huge when it comes to an investor investing in a new company.