which one is not an element of business plan

• Sources of Business Finance
• Small Business Loans
• Small Business Grants
• Crowdfunding Sites
• How to Get a Business Loan
• Small Business Insurance Providers
• Best Factoring Companies
• Types of Bank Accounts
• Best Banks for Small Business
• Best Business Bank Accounts
• Open a Business Bank Account
• Bank Accounts for Small Businesses
• Free Business Checking Accounts
• Best Business Credit Cards
• Get a Business Credit Card
• Business Credit Cards for Bad Credit
• Build Business Credit Fast
• Business Loan Eligibility Criteria
• Small-Business Bookkeeping Basics
• How to Set Financial Goals
• Business Loan Calculators
• How to Calculate ROI
• Calculate Net Income
• Calculate Working Capital
• Calculate Operating Income
• Calculate Net Present Value (NPV)
• Calculate Payroll Tax

12 Key Elements of a Business Plan (Top Components Explained)

Starting and running a successful business requires proper planning and execution of effective business tactics and strategies .

You need to prepare many essential business documents when starting a business for maximum success; the business plan is one such document.

When creating a business, you want to achieve business objectives and financial goals like productivity, profitability, and business growth. You need an effective business plan to help you get to your desired business destination.

Even if you are already running a business, the proper understanding and review of the key elements of a business plan help you navigate potential crises and obstacles.

This article will teach you why the business document is at the core of any successful business and its key elements you can not avoid.

Let’s get started.

Why Are Business Plans Important?

Business plans are practical steps or guidelines that usually outline what companies need to do to reach their goals. They are essential documents for any business wanting to grow and thrive in a highly-competitive business environment .

1. Proves Your Business Viability

A business plan gives companies an idea of how viable they are and what actions they need to take to grow and reach their financial targets. With a well-written and clearly defined business plan, your business is better positioned to meet its goals.

2. Guides You Throughout the Business Cycle

A business plan is not just important at the start of a business. As a business owner, you must draw up a business plan to remain relevant throughout the business cycle .

During the starting phase of your business, a business plan helps bring your ideas into reality. A solid business plan can secure funding from lenders and investors.

After successfully setting up your business, the next phase is management. Your business plan still has a role to play in this phase, as it assists in communicating your business vision to employees and external partners.

Essentially, your business plan needs to be flexible enough to adapt to changes in the needs of your business.

3. Helps You Make Better Business Decisions

As a business owner, you are involved in an endless decision-making cycle. Your business plan helps you find answers to your most crucial business decisions.

A robust business plan helps you settle your major business components before you launch your product, such as your marketing and sales strategy and competitive advantage.

4. Eliminates Big Mistakes

Many small businesses fail within their first five years for several reasons: lack of financing, stiff competition, low market need, inadequate teams, and inefficient pricing strategy.

Creating an effective plan helps you eliminate these big mistakes that lead to businesses' decline. Every business plan element is crucial for helping you avoid potential mistakes before they happen.

5. Secures Financing and Attracts Top Talents

Having an effective plan increases your chances of securing business loans. One of the essential requirements many lenders ask for to grant your loan request is your business plan.

A business plan helps investors feel confident that your business can attract a significant return on investments ( ROI ).

You can attract and retain top-quality talents with a clear business plan. It inspires your employees and keeps them aligned to achieve your strategic business goals.

Key Elements of Business Plan

Starting and running a successful business requires well-laid actions and supporting documents that better position a company to achieve its business goals and maximize success.

A business plan is a written document with relevant information detailing business objectives and how it intends to achieve its goals.

With an effective business plan, investors, lenders, and potential partners understand your organizational structure and goals, usually around profitability, productivity, and growth.

Every successful business plan is made up of key components that help solidify the efficacy of the business plan in delivering on what it was created to do.

Here are some of the components of an effective business plan.

1. Executive Summary

One of the key elements of a business plan is the executive summary. Write the executive summary as part of the concluding topics in the business plan. Creating an executive summary with all the facts and information available is easier.

In the overall business plan document, the executive summary should be at the forefront of the business plan. It helps set the tone for readers on what to expect from the business plan.

A well-written executive summary includes all vital information about the organization's operations, making it easy for a reader to understand.

The key points that need to be acted upon are highlighted in the executive summary. They should be well spelled out to make decisions easy for the management team.

A good and compelling executive summary points out a company's mission statement and a brief description of its products and services.

An executive summary summarizes a business's expected value proposition to distinct customer segments. It highlights the other key elements to be discussed during the rest of the business plan.

Including your prior experiences as an entrepreneur is a good idea in drawing up an executive summary for your business. A brief but detailed explanation of why you decided to start the business in the first place is essential.

Adding your company's mission statement in your executive summary cannot be overemphasized. It creates a culture that defines how employees and all individuals associated with your company abide when carrying out its related processes and operations.

Your executive summary should be brief and detailed to catch readers' attention and encourage them to learn more about your company.

Components of an Executive Summary

Here are some of the information that makes up an executive summary:

• The name and location of your company
• Products and services offered by your company
• Mission and vision statements
• Success factors of your business plan

2. Business Description

Your business description needs to be exciting and captivating as it is the formal introduction a reader gets about your company.

What your company aims to provide, its products and services, goals and objectives, target audience , and potential customers it plans to serve need to be highlighted in your business description.

A company description helps point out notable qualities that make your company stand out from other businesses in the industry. It details its unique strengths and the competitive advantages that give it an edge to succeed over its direct and indirect competitors.

Spell out how your business aims to deliver on the particular needs and wants of identified customers in your company description, as well as the particular industry and target market of the particular focus of the company.

Include trends and significant competitors within your particular industry in your company description. Your business description should contain what sets your company apart from other businesses and provides it with the needed competitive advantage.

In essence, if there is any area in your business plan where you need to brag about your business, your company description provides that unique opportunity as readers look to get a high-level overview.

Components of a Business Description

Your business description needs to contain these categories of information.

• Business location
• The legal structure of your business
• Summary of your business’s short and long-term goals

3. Market Analysis

The market analysis section should be solely based on analytical research as it details trends particular to the market you want to penetrate.

Graphs, spreadsheets, and histograms are handy data and statistical tools you need to utilize in your market analysis. They make it easy to understand the relationship between your current ideas and the future goals you have for the business.

All details about the target customers you plan to sell products or services should be in the market analysis section. It helps readers with a helpful overview of the market.

In your market analysis, you provide the needed data and statistics about industry and market share, the identified strengths in your company description, and compare them against other businesses in the same industry.

The market analysis section aims to define your target audience and estimate how your product or service would fare with these identified audiences.

Market analysis helps visualize a target market by researching and identifying the primary target audience of your company and detailing steps and plans based on your audience location.

Obtaining this information through market research is essential as it helps shape how your business achieves its short-term and long-term goals.

Market Analysis Factors

Here are some of the factors to be included in your market analysis.

• The geographical location of your target market
• Needs of your target market and how your products and services can meet those needs
• Demographics of your target audience

Components of the Market Analysis Section

Here is some of the information to be included in your market analysis.

• Industry description and statistics
• Demographics and profile of target customers
• Marketing data for your products and services
• Detailed evaluation of your competitors

4. Marketing Plan

A marketing plan defines how your business aims to reach its target customers, generate sales leads, and, ultimately, make sales.

Promotion is at the center of any successful marketing plan. It is a series of steps to pitch a product or service to a larger audience to generate engagement. Note that the marketing strategy for a business should not be stagnant and must evolve depending on its outcome.

Include the budgetary requirement for successfully implementing your marketing plan in this section to make it easy for readers to measure your marketing plan's impact in terms of numbers.

The information to include in your marketing plan includes marketing and promotion strategies, pricing plans and strategies , and sales proposals. You need to include how you intend to get customers to return and make repeat purchases in your business plan.

5. Sales Strategy

Sales strategy defines how you intend to get your product or service to your target customers and works hand in hand with your business marketing strategy.

Your sales strategy approach should not be complex. Break it down into simple and understandable steps to promote your product or service to target customers.

Apart from the steps to promote your product or service, define the budget you need to implement your sales strategies and the number of sales reps needed to help the business assist in direct sales.

Your sales strategy should be specific on what you need and how you intend to deliver on your sales targets, where numbers are reflected to make it easier for readers to understand and relate better.

6. Competitive Analysis

Providing transparent and honest information, even with direct and indirect competitors, defines a good business plan. Provide the reader with a clear picture of your rank against major competitors.

Identifying your competitors' weaknesses and strengths is useful in drawing up a market analysis. It is one information investors look out for when assessing business plans.

The competitive analysis section clearly defines the notable differences between your company and your competitors as measured against their strengths and weaknesses.

This section should define the following:

• Your competitors' identified advantages in the market
• How do you plan to set up your company to challenge your competitors’ advantage and gain grounds from them?
• The standout qualities that distinguish you from other companies
• Potential bottlenecks you have identified that have plagued competitors in the same industry and how you intend to overcome these bottlenecks

In your business plan, you need to prove your industry knowledge to anyone who reads your business plan. The competitive analysis section is designed for that purpose.

7. Management and Organization

Management and organization are key components of a business plan. They define its structure and how it is positioned to run.

Whether you intend to run a sole proprietorship, general or limited partnership, or corporation, the legal structure of your business needs to be clearly defined in your business plan.

Use an organizational chart that illustrates the hierarchy of operations of your company and spells out separate departments and their roles and functions in this business plan section.

The management and organization section includes profiles of advisors, board of directors, and executive team members and their roles and responsibilities in guaranteeing the company's success.

Apparent factors that influence your company's corporate culture, such as human resources requirements and legal structure, should be well defined in the management and organization section.

Defining the business's chain of command if you are not a sole proprietor is necessary. It leaves room for little or no confusion about who is in charge or responsible during business operations.

This section provides relevant information on how the management team intends to help employees maximize their strengths and address their identified weaknesses to help all quarters improve for the business's success.

8. Products and Services

This business plan section describes what a company has to offer regarding products and services to the maximum benefit and satisfaction of its target market.

Boldly spell out pending patents or copyright products and intellectual property in this section alongside costs, expected sales revenue, research and development, and competitors' advantage as an overview.

At this stage of your business plan, the reader needs to know what your business plans to produce and sell and the benefits these products offer in meeting customers' needs.

The supply network of your business product, production costs, and how you intend to sell the products are crucial components of the products and services section.

Investors are always keen on this information to help them reach a balanced assessment of if investing in your business is risky or offer benefits to them.

You need to create a link in this section on how your products or services are designed to meet the market's needs and how you intend to keep those customers and carve out a market share for your company.

Repeat purchases are the backing that a successful business relies on and measure how much customers are into what your company is offering.

This section is more like an expansion of the executive summary section. You need to analyze each product or service under the business.

9. Operating Plan

An operations plan describes how you plan to carry out your business operations and processes.

The operating plan for your business should include:

• Information about how your company plans to carry out its operations.
• The base location from which your company intends to operate.
• The number of employees to be utilized and other information about your company's operations.
• Key business processes.

This section should highlight how your organization is set up to run. You can also introduce your company's management team in this section, alongside their skills, roles, and responsibilities in the company.

The best way to introduce the company team is by drawing up an organizational chart that effectively maps out an organization's rank and chain of command.

What should be spelled out to readers when they come across this business plan section is how the business plans to operate day-in and day-out successfully.

10. Financial Projections and Assumptions

Bringing your great business ideas into reality is why business plans are important. They help create a sustainable and viable business.

The financial section of your business plan offers significant value. A business uses a financial plan to solve all its financial concerns, which usually involves startup costs, labor expenses, financial projections, and funding and investor pitches.

All key assumptions about the business finances need to be listed alongside the business financial projection, and changes to be made on the assumptions side until it balances with the projection for the business.

The financial plan should also include how the business plans to generate income and the capital expenditure budgets that tend to eat into the budget to arrive at an accurate cash flow projection for the business.

Base your financial goals and expectations on extensive market research backed with relevant financial statements for the relevant period.

Examples of financial statements you can include in the financial projections and assumptions section of your business plan include:

• Projected income statements
• Cash flow statements
• Balance sheets
• Income statements

Revealing the financial goals and potentials of the business is what the financial projection and assumption section of your business plan is all about. It needs to be purely based on facts that can be measurable and attainable.

11. Request For Funding

The request for funding section focuses on the amount of money needed to set up your business and underlying plans for raising the money required. This section includes plans for utilizing the funds for your business's operational and manufacturing processes.

When seeking funding, a reasonable timeline is required alongside it. If the need arises for additional funding to complete other business-related projects, you are not left scampering and desperate for funds.

If you do not have the funds to start up your business, then you should devote a whole section of your business plan to explaining the amount of money you need and how you plan to utilize every penny of the funds. You need to explain it in detail for a future funding request.

When an investor picks up your business plan to analyze it, with all your plans for the funds well spelled out, they are motivated to invest as they have gotten a backing guarantee from your funding request section.

Include timelines and plans for how you intend to repay the loans received in your funding request section. This addition keeps investors assured that they could recoup their investment in the business.

12. Exhibits and Appendices

Exhibits and appendices comprise the final section of your business plan and contain all supporting documents for other sections of the business plan.

Some of the documents that comprise the exhibits and appendices section includes:

• Legal documents
• Licenses and permits
• Credit histories
• Customer lists

The choice of what additional document to include in your business plan to support your statements depends mainly on the intended audience of your business plan. Hence, it is better to play it safe and not leave anything out when drawing up the appendix and exhibit section.

Supporting documentation is particularly helpful when you need funding or support for your business. This section provides investors with a clearer understanding of the research that backs the claims made in your business plan.

There are key points to include in the appendix and exhibits section of your business plan.

• The management team and other stakeholders resume
• Marketing research
• Permits and relevant legal documents
• Financial documents

Was This Article Helpful?

Martin luenendonk.

Martin loves entrepreneurship and has helped dozens of entrepreneurs by validating the business idea, finding scalable customer acquisition channels, and building a data-driven organization. During his time working in investment banking, tech startups, and industry-leading companies he gained extensive knowledge in using different software tools to optimize business processes.

This insights and his love for researching SaaS products enables him to provide in-depth, fact-based software reviews to enable software buyers make better decisions.

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Tips White Papers
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• United Kingdom
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

Elements of a Business Plan There are seven major sections of a business plan, and each one is a complex document. Read this selection from our business plan tutorial to fully understand these components.

Now that you understand why you need a business plan and you've spent some time doing your homework gathering the information you need to create one, it's time to roll up your sleeves and get everything down on paper. The following pages will describe in detail the seven essential sections of a business plan: what you should include, what you shouldn't include, how to work the numbers and additional resources you can turn to for help. With that in mind, jump right in.

Executive Summary

Within the overall outline of the business plan, the executive summary will follow the title page. The summary should tell the reader what you want. This is very important. All too often, what the business owner desires is buried on page eight. Clearly state what you're asking for in the summary.

The statement should be kept short and businesslike, probably no more than half a page. It could be longer, depending on how complicated the use of funds may be, but the summary of a business plan, like the summary of a loan application, is generally no longer than one page. Within that space, you'll need to provide a synopsis of your entire business plan. Key elements that should be included are:

• Business concept. Describes the business, its product and the market it will serve. It should point out just exactly what will be sold, to whom and why the business will hold a competitive advantage.
• Financial features. Highlights the important financial points of the business including sales, profits, cash flows and return on investment.
• Financial requirements. Clearly states the capital needed to start the business and to expand. It should detail how the capital will be used, and the equity, if any, that will be provided for funding. If the loan for initial capital will be based on security instead of equity, you should also specify the source of collateral.
• Current business position. Furnishes relevant information about the company, its legal form of operation, when it was formed, the principal owners and key personnel.
• Major achievements. Details any developments within the company that are essential to the success of the business. Major achievements include items like patents, prototypes, location of a facility, any crucial contracts that need to be in place for product development, or results from any test marketing that has been conducted.

When writing your statement of purpose, don't waste words. If the statement of purpose is eight pages, nobody's going to read it because it'll be very clear that the business, no matter what its merits, won't be a good investment because the principals are indecisive and don't really know what they want. Make it easy for the reader to realize at first glance both your needs and capabilities.

Business Description

Tell them all about it.

The business description usually begins with a short description of the industry. When describing the industry, discuss the present outlook as well as future possibilities. You should also provide information on all the various markets within the industry, including any new products or developments that will benefit or adversely affect your business. Base all of your observations on reliable data and be sure to footnote sources of information as appropriate. This is important if you're seeking funding; the investor will want to know just how dependable your information is, and won't risk money on assumptions or conjecture.

When describing your business, the first thing you need to concentrate on is its structure. By structure we mean the type of operation, i.e. wholesale, retail, food service, manufacturing or service-oriented. Also state whether the business is new or already established.

In addition to structure, legal form should be reiterated once again. Detail whether the business is a sole proprietorship, partnership or corporation, who its principals are, and what they will bring to the business.

You should also mention who you will sell to, how the product will be distributed, and the business's support systems. Support may come in the form of advertising, promotions and customer service.

Once you've described the business, you need to describe the products or services you intend to market. The product description statement should be complete enough to give the reader a clear idea of your intentions. You may want to emphasize any unique features or variations from concepts that can typically be found in the industry.

Be specific in showing how you will give your business a competitive edge. For example, your business will be better because you will supply a full line of products; competitor A doesn't have a full line. You're going to provide service after the sale; competitor B doesn't support anything he sells. Your merchandise will be of higher quality. You'll give a money-back guarantee. Competitor C has the reputation for selling the best French fries in town; you're going to sell the best Thousand Island dressing.

How Will I Profit?

Now you must be a classic capitalist and ask yourself, "How can I turn a buck? And why do I think I can make a profit that way?" Answer that question for yourself, and then convey that answer to others in the business concept section. You don't have to write 25 pages on why your business will be profitable. Just explain the factors you think will make it successful, like the following: it's a well-organized business, it will have state-of-the-art equipment, its location is exceptional, the market is ready for it, and it's a dynamite product at a fair price.

If you're using your business plan as a document for financial purposes, explain why the added equity or debt money is going to make your business more profitable.

Show how you will expand your business or be able to create something by using that money.

Show why your business is going to be profitable. A potential lender is going to want to know how successful you're going to be in this particular business. Factors that support your claims for success can be mentioned briefly; they will be detailed later. Give the reader an idea of the experience of the other key people in the business. They'll want to know what suppliers or experts you've spoken to about your business and their response to your idea. They may even ask you to clarify your choice of location or reasons for selling this particular product.

The business description can be a few paragraphs in length to a few pages, depending on the complexity of your plan. If your plan isn't too complicated, keep your business description short, describing the industry in one paragraph, the product in another, and the business and its success factors in three or four paragraphs that will end the statement.

While you may need to have a lengthy business description in some cases, it's our opinion that a short statement conveys the required information in a much more effective manner. It doesn't attempt to hold the reader's attention for an extended period of time, and this is important if you're presenting to a potential investor who will have other plans he or she will need to read as well. If the business description is long and drawn-out, you'll lose the reader's attention, and possibly any chance of receiving the necessary funding for the project.

Market Strategies

Define your market.

Market strategies are the result of a meticulous market analysis. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share of sales. A market analysis also enables the entrepreneur to establish pricing, distribution and promotional strategies that will allow the company to become profitable within a competitive environment. In addition, it provides an indication of the growth potential within the industry, and this will allow you to develop your own estimates for the future of your business.

Begin your market analysis by defining the market in terms of size, structure, growth prospects, trends and sales potential.

The total aggregate sales of your competitors will provide you with a fairly accurate estimate of the total potential market. Once the size of the market has been determined, the next step is to define the target market. The target market narrows down the total market by concentrating on segmentation factors that will determine the total addressable market--the total number of users within the sphere of the business's influence. The segmentation factors can be geographic, customer attributes or product-oriented.

For instance, if the distribution of your product is confined to a specific geographic area, then you want to further define the target market to reflect the number of users or sales of that product within that geographic segment.

Once the target market has been detailed, it needs to be further defined to determine the total feasible market. This can be done in several ways, but most professional planners will delineate the feasible market by concentrating on product segmentation factors that may produce gaps within the market. In the case of a microbrewery that plans to brew a premium lager beer, the total feasible market could be defined by determining how many drinkers of premium pilsner beers there are in the target market.

It's important to understand that the total feasible market is the portion of the market that can be captured provided every condition within the environment is perfect and there is very little competition. In most industries this is simply not the case. There are other factors that will affect the share of the feasible market a business can reasonably obtain. These factors are usually tied to the structure of the industry, the impact of competition, strategies for market penetration and continued growth, and the amount of capital the business is willing to spend in order to increase its market share.

Projecting Market Share

Arriving at a projection of the market share for a business plan is very much a subjective estimate. It's based on not only an analysis of the market but on highly targeted and competitive distribution, pricing and promotional strategies. For instance, even though there may be a sizable number of premium pilsner drinkers to form the total feasible market, you need to be able to reach them through your distribution network at a price point that's competitive, and then you have to let them know it's available and where they can buy it. How effectively you can achieve your distribution, pricing and promotional goals determines the extent to which you will be able to garner market share.

For a business plan, you must be able to estimate market share for the time period the plan will cover. In order to project market share over the time frame of the business plan, you'll need to consider two factors:

• Industry growth which will increase the total number of users. Most projections utilize a minimum of two growth models by defining different industry sales scenarios. The industry sales scenarios should be based on leading indicators of industry sales, which will most likely include industry sales, industry segment sales, demographic data and historical precedence.
• Conversion of users from the total feasible market. This is based on a sales cycle similar to a product life cycle where you have five distinct stages: early pioneer users, early users, early majority users, late majority users and late users. Using conversion rates, market growth will continue to increase your market share during the period from early pioneers to early majority users, level off through late majority users, and decline with late users.

Defining the market is but one step in your analysis. With the information you've gained through market research, you need to develop strategies that will allow you to fulfill your objectives.

Positioning Your Business

When discussing market strategy, it's inevitable that positioning will be brought up. A company's positioning strategy is affected by a number of variables that are closely tied to the motivations and requirements of target customers within as well as the actions of primary competitors.

Before a product can be positioned, you need to answer several strategic questions such as:

• How are your competitors positioning themselves?
• What specific attributes does your product have that your competitors' don't?
• What customer needs does your product fulfill?

Once you've answered your strategic questions based on research of the market, you can then begin to develop your positioning strategy and illustrate that in your business plan. A positioning statement for a business plan doesn't have to be long or elaborate. It should merely point out exactly how you want your product perceived by both customers and the competition.

How you price your product is important because it will have a direct effect on the success of your business. Though pricing strategy and computations can be complex, the basic rules of pricing are straightforward:

• All prices must cover costs.
• The best and most effective way of lowering your sales prices is to lower costs.
• Your prices must reflect the dynamics of cost, demand, changes in the market and response to your competition.
• Prices must be established to assure sales. Don't price against a competitive operation alone. Rather, price to sell.
• Product utility, longevity, maintenance and end use must be judged continually, and target prices adjusted accordingly.
• Prices must be set to preserve order in the marketplace.

There are many methods of establishing prices available to you:

• Cost-plus pricing. Used mainly by manufacturers, cost-plus pricing assures that all costs, both fixed and variable, are covered and the desired profit percentage is attained.
• Demand pricing. Used by companies that sell their product through a variety of sources at differing prices based on demand.
• Competitive pricing. Used by companies that are entering a market where there is already an established price and it is difficult to differentiate one product from another.
• Markup pricing. Used mainly by retailers, markup pricing is calculated by adding your desired profit to the cost of the product. Each method listed above has its strengths and weaknesses.
• Distribution

Distribution includes the entire process of moving the product from the factory to the end user. The type of distribution network you choose will depend upon the industry and the size of the market. A good way to make your decision is to analyze your competitors to determine the channels they are using, then decide whether to use the same type of channel or an alternative that may provide you with a strategic advantage.

Some of the more common distribution channels include:

• Direct sales. The most effective distribution channel is to sell directly to the end-user.
• OEM (original equipment manufacturer) sales. When your product is sold to the OEM, it is incorporated into their finished product and it is distributed to the end user.
• Manufacturer's representatives. One of the best ways to distribute a product, manufacturer's reps, as they are known, are salespeople who operate out of agencies that handle an assortment of complementary products and divide their selling time among them.
• Wholesale distributors. Using this channel, a manufacturer sells to a wholesaler, who in turn sells it to a retailer or other agent for further distribution through the channel until it reaches the end user.
• Brokers. Third-party distributors who often buy directly from the distributor or wholesaler and sell to retailers or end users.
• Retail distributors. Distributing a product through this channel is important if the end user of your product is the general consuming public.
• Direct Mail. Selling to the end user using a direct mail campaign.

As we've mentioned already, the distribution strategy you choose for your product will be based on several factors that include the channels being used by your competition, your pricing strategy and your own internal resources.

Promotion Plan

With a distribution strategy formed, you must develop a promotion plan. The promotion strategy in its most basic form is the controlled distribution of communication designed to sell your product or service. In order to accomplish this, the promotion strategy encompasses every marketing tool utilized in the communication effort. This includes:

• Advertising. Includes the advertising budget, creative message(s), and at least the first quarter's media schedule.
• Packaging. Provides a description of the packaging strategy. If available, mockups of any labels, trademarks or service marks should be included.
• Public relations. A complete account of the publicity strategy including a list of media that will be approached as well as a schedule of planned events.
• Sales promotions. Establishes the strategies used to support the sales message. This includes a description of collateral marketing material as well as a schedule of planned promotional activities such as special sales, coupons, contests and premium awards.
• Personal sales. An outline of the sales strategy including pricing procedures, returns and adjustment rules, sales presentation methods, lead generation, customer service policies, salesperson compensation, and salesperson market responsibilities.

Sales Potential

Once the market has been researched and analyzed, conclusions need to be developed that will supply a quantitative outlook concerning the potential of the business. The first financial projection within the business plan must be formed utilizing the information drawn from defining the market, positioning the product, pricing, distribution, and strategies for sales. The sales or revenue model charts the potential for the product, as well as the business, over a set period of time. Most business plans will project revenue for up to three years, although five-year projections are becoming increasingly popular among lenders.

When developing the revenue model for the business plan, the equation used to project sales is fairly simple. It consists of the total number of customers and the average revenue from each customer. In the equation, "T" represents the total number of people, "A" represents the average revenue per customer, and "S" represents the sales projection. The equation for projecting sales is: (T)(A) = S

Using this equation, the annual sales for each year projected within the business plan can be developed. Of course, there are other factors that you'll need to evaluate from the revenue model. Since the revenue model is a table illustrating the source for all income, every segment of the target market that is treated differently must be accounted for. In order to determine any differences, the various strategies utilized in order to sell the product have to be considered. As we've already mentioned, those strategies include distribution, pricing and promotion.

Competitive Analysis

Identify and analyze your competition.

The competitive analysis is a statement of the business strategy and how it relates to the competition. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.

The first step in a competitor analysis is to identify the current and potential competition. There are essentially two ways you can identify competitors. The first is to look at the market from the customer's viewpoint and group all your competitors by the degree to which they contend for the buyer's dollar. The second method is to group competitors according to their various competitive strategies so you understand what motivates them.

Once you've grouped your competitors, you can start to analyze their strategies and identify the areas where they're most vulnerable. This can be done through an examination of your competitors' weaknesses and strengths. A competitor's strengths and weaknesses are usually based on the presence and absence of key assets and skills needed to compete in the market.

To determine just what constitutes a key asset or skill within an industry, David A. Aaker in his book, Developing Business Strategies , suggests concentrating your efforts in four areas:

• The reasons behind successful as well as unsuccessful firms
• Prime customer motivators
• Major component costs
• Industry mobility barriers

According to theory, the performance of a company within a market is directly related to the possession of key assets and skills. Therefore, an analysis of strong performers should reveal the causes behind such a successful track record. This analysis, in conjunction with an examination of unsuccessful companies and the reasons behind their failure, should provide a good idea of just what key assets and skills are needed to be successful within a given industry and market segment.

Through your competitor analysis, you will also have to create a marketing strategy that will generate an asset or skill competitors don't have, which will provide you with a distinct and enduring competitive advantage. Since competitive advantages are developed from key assets and skills, you should sit down and put together a competitive strength grid. This is a scale that lists all your major competitors or strategic groups based upon their applicable assets and skills and how your own company fits on this scale.

Create a Competitive Strength Grid

To put together a competitive strength grid, list all the key assets and skills down the left margin of a piece of paper. Along the top, write down two column headers: "weakness" and "strength." In each asset or skill category, place all the competitors that have weaknesses in that particular category under the weakness column, and all those that have strengths in that specific category in the strength column. After you've finished, you'll be able to determine just where you stand in relation to the other firms competing in your industry.

Once you've established the key assets and skills necessary to succeed in this business and have defined your distinct competitive advantage, you need to communicate them in a strategic form that will attract market share as well as defend it. Competitive strategies usually fall into these five areas:

• Advertising

Many of the factors leading to the formation of a strategy should already have been highlighted in previous sections, specifically in marketing strategies. Strategies primarily revolve around establishing the point of entry in the product life cycle and an endurable competitive advantage. As we've already discussed, this involves defining the elements that will set your product or service apart from your competitors or strategic groups. You need to establish this competitive advantage clearly so the reader understands not only how you will accomplish your goals, but also why your strategy will work.

Design and Development Plan

What you'll cover in this section.

The purpose of the design and development plan section is to provide investors with a description of the product's design, chart its development within the context of production, marketing and the company itself, and create a development budget that will enable the company to reach its goals.

There are generally three areas you'll cover in the development plan section:

• Product development
• Market development
• Organizational development

Each of these elements needs to be examined from the funding of the plan to the point where the business begins to experience a continuous income. Although these elements will differ in nature concerning their content, each will be based on structure and goals.

The first step in the development process is setting goals for the overall development plan. From your analysis of the market and competition, most of the product, market and organizational development goals will be readily apparent. Each goal you define should have certain characteristics. Your goals should be quantifiable in order to set up time lines, directed so they relate to the success of the business, consequential so they have impact upon the company, and feasible so that they aren't beyond the bounds of actual completion.

Goals For Product Development

Goals for product development should center on the technical as well as the marketing aspects of the product so that you have a focused outline from which the development team can work. For example, a goal for product development of a microbrewed beer might be "Produce recipe for premium lager beer" or "Create packaging for premium lager beer." In terms of market development, a goal might be, "Develop collateral marketing material." Organizational goals would center on the acquisition of expertise in order to attain your product and market-development goals. This expertise usually needs to be present in areas of key assets that provide a competitive advantage. Without the necessary expertise, the chances of bringing a product successfully to market diminish.

With your goals set and expertise in place, you need to form a set of procedural tasks or work assignments for each area of the development plan. Procedures will have to be developed for product development, market development, and organization development. In some cases, product and organization can be combined if the list of procedures is short enough.

Procedures should include how resources will be allocated, who is in charge of accomplishing each goal, and how everything will interact. For example, to produce a recipe for a premium lager beer, you would need to do the following:

• Gather ingredients.
• Determine optimum malting process.
• Gauge mashing temperature.
• Boil wort and evaluate which hops provide the best flavor.
• Determine yeast amounts and fermentation period.
• Determine aging period.
• Carbonate the beer.
• Decide whether or not to pasteurize the beer.

The development of procedures provides a list of work assignments that need to be accomplished, but one thing it doesn't provide are the stages of development that coordinate the work assignments within the overall development plan. To do this, you first need to amend the work assignments created in the procedures section so that all the individual work elements are accounted for in the development plan. The next stage involves setting deliverable dates for components as well as the finished product for testing purposes. There are primarily three steps you need to go through before the product is ready for final delivery:

• Preliminary product review . All the product's features and specifications are checked.
• Critical product review . All the key elements of the product are checked and gauged against the development schedule to make sure everything is going according to plan.
• Final product review . All elements of the product are checked against goals to assure the integrity of the prototype.

Scheduling and Costs

This is one of the most important elements in the development plan. Scheduling includes all of the key work elements as well as the stages the product must pass through before customer delivery. It should also be tied to the development budget so that expenses can be tracked. But its main purpose is to establish time frames for completion of all work assignments and juxtapose them within the stages through which the product must pass. When producing the schedule, provide a column for each procedural task, how long it takes, start date and stop date. If you want to provide a number for each task, include a column in the schedule for the task number.

Development Budget

That leads us into a discussion of the development budget. When forming your development budget, you need to take into account all the expenses required to design the product and to take it from prototype to production.

Costs that should be included in the development budget include:

• Material . All raw materials used in the development of the product.
• Direct labor . All labor costs associated with the development of the product.
• Overhead . All overhead expenses required to operate the business during the development phase such as taxes, rent, phone, utilities, office supplies, etc.
• G&A costs . The salaries of executive and administrative personnel along with any other office support functions.
• Marketing & sales . The salaries of marketing personnel required to develop pre-promotional materials and plan the marketing campaign that should begin prior to delivery of the product.
• Professional services . Those costs associated with the consultation of outside experts such as accountants, lawyers, and business consultants.
• Miscellaneous Costs . Costs that are related to product development.
• Capital equipment . To determine the capital requirements for the development budget, you first have to establish what type of equipment you will need, whether you will acquire the equipment or use outside contractors, and finally, if you decide to acquire the equipment, whether you will lease or purchase it.

As we mentioned already, the company has to have the proper expertise in key areas to succeed; however, not every company will start a business with the expertise required in every key area. Therefore, the proper personnel have to be recruited, integrated into the development process, and managed so that everyone forms a team focused on the achievement of the development goals.

Before you begin recruiting, however, you should determine which areas within the development process will require the addition of personnel. This can be done by reviewing the goals of your development plan to establish key areas that need attention. After you have an idea of the positions that need to be filled, you should produce a job description and job specification.

Once you've hired the proper personnel, you need to integrate them into the development process by assigning tasks from the work assignments you've developed. Finally, the whole team needs to know what their role is within the company and how each interrelates with every position within the development team. In order to do this, you should develop an organizational chart for your development team.

Assessing Risks

Finally, the risks involved in developing the product should be assessed and a plan developed to address each one. The risks during the development stage will usually center on technical development of the product, marketing, personnel requirements, and financial problems. By identifying and addressing each of the perceived risks during the development period, you will allay some of your major fears concerning the project and those of investors as well.

Operations & Management

The operations and management plan is designed to describe just how the business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the various responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business. In fact, within the operations plan you'll develop the next set of financial tables that will supply the foundation for the "Financial Components" section.

The financial tables that you'll develop within the operations plan include:

• The operating expense table
• The capital requirements table
• The cost of goods table

There are two areas that need to be accounted for when planning the operations of your company. The first area is the organizational structure of the company, and the second is the expense and capital requirements associated with its operation.

Organizational Structure

The organizational structure of the company is an essential element within a business plan because it provides a basis from which to project operating expenses. This is critical to the formation of financial statements, which are heavily scrutinized by investors; therefore, the organizational structure has to be well-defined and based within a realistic framework given the parameters of the business.

Although every company will differ in its organizational structure, most can be divided into several broad areas that include:

• Marketing and sales (includes customer relations and service)
• Production (including quality assurance)
• Research and development
• Administration

These are very broad classifications and it's important to keep in mind that not every business can be divided in this manner. In fact, every business is different, and each one must be structured according to its own requirements and goals.

The four stages for organizing a business are:

Calculate Your Personnel Numbers

Once you've structured your business, however, you need to consider your overall goals and the number of personnel required to reach those goals. In order to determine the number of employees you'll need to meet the goals you've set for your business, you'll need to apply the following equation to each department listed in your organizational structure: C / S = P

In this equation, C represents the total number of customers, S represents the total number of customers that can be served by each employee, and P represents the personnel requirements. For instance, if the number of customers for first year sales is projected at 10,110 and one marketing employee is required for every 200 customers, you would need 51 employees within the marketing department: 10,110 / 200 = 51

Once you calculate the number of employees that you'll need for your organization, you'll need to determine the labor expense. The factors that need to be considered when calculating labor expense (LE) are the personnel requirements (P) for each department multiplied by the employee salary level (SL). Therefore, the equation would be: P * SL = LE

Using the marketing example from above, the labor expense for that department would be: 51 * $40,000 = $2,040,000

Calculate Overhead Expenses

Once the organization's operations have been planned, the expenses associated with the operation of the business can be developed. These are usually referred to as overhead expenses. Overhead expenses refer to all non-labor expenses required to operate the business. Expenses can be divided into fixed (those that must be paid, usually at the same rate, regardless of the volume of business) and variable or semivariable (those which change according to the amount of business).

Overhead expenses usually include the following:

• Maintenance and repair
• Equipment leases
• Advertising & promotion
• Packaging & shipping
• Payroll taxes and benefits
• Uncollectible receivables
• Professional services
• Loan payments
• Depreciation

In order to develop the overhead expenses for the expense table used in this portion of the business plan, you need to multiply the number of employees by the expenses associated with each employee. Therefore, if NE represents the number of employees and EE is the expense per employee, the following equation can be used to calculate the sum of each overhead (OH) expense: OH = NE * EE

Develop a Capital Requirements Table

In addition to the expense table, you'll also need to develop a capital requirements table that depicts the amount of money necessary to purchase the equipment you'll use to establish and continue operations. It also illustrates the amount of depreciation your company will incur based on all equipment elements purchased with a lifetime of more than one year.

In order to generate the capital requirements table, you first have to establish the various elements within the business that will require capital investment. For service businesses, capital is usually tied to the various pieces of equipment used to service customers.

Capital for manufacturing companies, on the other hand, is based on the equipment required in order to produce the product. Manufacturing equipment usually falls into three categories: testing equipment, assembly equipment and packaging equipment.

With these capital elements in mind, you need to determine the number of units or customers, in terms of sales, that each equipment item can adequately handle. This is important because capital requirements are a product of income, which is produced through unit sales. In order to meet sales projections, a business usually has to invest money to increase production or supply better service. In the business plan, capital requirements are tied to projected sales as illustrated in the revenue model shown earlier in this chapter.

For instance, if the capital equipment required is capable of handling the needs of 10,000 customers at an average sale of $10 each, that would be $100,000 in sales, at which point additional capital will be required in order to purchase more equipment should the company grow beyond this point. This leads us to another factor within the capital requirements equation, and that is equipment cost.

If you multiply the cost of equipment by the number of customers it can support in terms of sales, it would result in the capital requirements for that particular equipment element. Therefore, you can use an equation in which capital requirements (CR) equals sales (S) divided by number of customers (NC) supported by each equipment element, multiplied by the average sale (AS), which is then multiplied by the capital cost (CC) of the equipment element. Given these parameters, your equation would look like the following: CR = [(S / NC) * AS] * CC

The capital requirements table is formed by adding all your equipment elements to generate the total new capital for that year. During the first year, total new capital is also the total capital required. For each successive year thereafter, total capital (TC) required is the sum of total new capital (NC) plus total capital (PC) from the previous year, less depreciation (D), once again, from the previous year. Therefore, your equation to arrive at total capital for each year portrayed in the capital requirements model would be: TC = NC + PC - D

Keep in mind that depreciation is an expense that shows the decrease in value of the equipment throughout its effective lifetime. For many businesses, depreciation is based upon schedules that are tied to the lifetime of the equipment. Be careful when choosing the schedule that best fits your business. Depreciation is also the basis for a tax deduction as well as the flow of money for new capital. You may need to seek consultation from an expert in this area.

Create a Cost of Goods Table

The last table that needs to be generated in the operations and management section of your business plan is the cost of goods table. This table is used only for businesses where the product is placed into inventory. For a retail or wholesale business, cost of goods sold --or cost of sales --refers to the purchase of products for resale, i.e. the inventory. The products that are sold are logged into cost of goods as an expense of the sale, while those that aren't sold remain in inventory.

For a manufacturing firm, cost of goods is the cost incurred by the company to manufacture its product. This usually consists of three elements:

As in retail, the merchandise that is sold is expensed as a cost of goods , while merchandise that isn't sold is placed in inventory. Cost of goods has to be accounted for in the operations of a business. It is an important yardstick for measuring the firm's profitability for the cash-flow statement and income statement.

In the income statement, the last stage of the manufacturing process is the item expensed as cost of goods, but it is important to document the inventory still in various stages of the manufacturing process because it represents assets to the company. This is important to determining cash flow and to generating the balance sheet.

That is what the cost of goods table does. It's one of the most complicated tables you'll have to develop for your business plan, but it's an integral part of portraying the flow of inventory through your operations, the placement of assets within the company, and the rate at which your inventory turns.

In order to generate the cost of goods table, you need a little more information in addition to what your labor and material cost is per unit. You also need to know the total number of units sold for the year, the percentage of units which will be fully assembled, the percentage which will be partially assembled, and the percentage which will be in unassembled inventory. Much of these figures will depend on the capacity of your equipment as well as on the inventory control system you develop. Along with these factors, you also need to know at what stage the majority of the labor is performed.

Financial Components

Financial statements to include.

Financial data is always at the back of the business plan, but that doesn't mean it's any less important than up-front material such as the business concept and the management team. Astute investors look carefully at the charts, tables, formulas and spreadsheets in the financial section, because they know that this information is like the pulse, respiration rate and blood pressure in a human--it shows whether the patient is alive and what the odds are for continued survival.

Financial statements, like bad news, come in threes. The news in financial statements isn't always bad, of course, but taken together it provides an accurate picture of a company's current value, plus its ability to pay its bills today and earn a profit going forward.

The three common statements are a cash flow statement, an income statement and a balance sheet. Most entrepreneurs should provide them and leave it at that. But not all do. But this is a case of the more, the less merry. As a rule, stick with the big three: income, balance sheet and cash flow statements.

These three statements are interlinked, with changes in one necessarily altering the others, but they measure quite different aspects of a company's financial health. It's hard to say that one of these is more important than another. But of the three, the income statement may be the best place to start.

Income Statement

The income statement is a simple and straightforward report on the proposed business's cash-generating ability. It's a score card on the financial performance of your business that reflects when sales are made and when expenses are incurred. It draws information from the various financial models developed earlier such as revenue, expenses, capital (in the form of depreciation), and cost of goods. By combining these elements, the income statement illustrates just how much your company makes or loses during the year by subtracting cost of goods and expenses from revenue to arrive at a net result--which is either a profit or a loss.

For a business plan, the income statement should be generated on a monthly basis during the first year, quarterly for the second, and annually for each year thereafter. It's formed by listing your financial projections in the following manner:

• Income . Includes all the income generated by the business and its sources.
• Cost of goods . Includes all the costs related to the sale of products in inventory.
• Gross profit margin . The difference between revenue and cost of goods. Gross profit margin can be expressed in dollars, as a percentage, or both. As a percentage, the GP margin is always stated as a percentage of revenue.
• Operating expenses . Includes all overhead and labor expenses associated with the operations of the business.
• Total expenses . The sum of all overhead and labor expenses required to operate the business.
• Net profit . The difference between gross profit margin and total expenses, the net income depicts the business's debt and capital capabilities.
• Depreciation . Reflects the decrease in value of capital assets used to generate income. Also used as the basis for a tax deduction and an indicator of the flow of money into new capital.
• Net profit before interest . The difference between net profit and depreciation.
• Interest . Includes all interest derived from debts, both short-term and long-term. Interest is determined by the amount of investment within the company.
• Net profit before taxes . The difference between net profit before interest and interest.
• Taxes . Includes all taxes on the business.
• Profit after taxes . The difference between net profit before taxes and the taxes accrued. Profit after taxes is the bottom line for any company.

Following the income statement is a short note analyzing the statement. The analysis statement should be very short, emphasizing key points within the income statement.

Cash Flow Statement

The cash-flow statement is one of the most critical information tools for your business, showing how much cash will be needed to meet obligations, when it is going to be required, and from where it will come. It shows a schedule of the money coming into the business and expenses that need to be paid. The result is the profit or loss at the end of the month or year. In a cash-flow statement, both profits and losses are carried over to the next column to show the cumulative amount. Keep in mind that if you run a loss on your cash-flow statement, it is a strong indicator that you will need additional cash in order to meet expenses.

Like the income statement, the cash-flow statement takes advantage of previous financial tables developed during the course of the business plan. The cash-flow statement begins with cash on hand and the revenue sources. The next item it lists is expenses, including those accumulated during the manufacture of a product. The capital requirements are then logged as a negative after expenses. The cash-flow statement ends with the net cash flow.

The cash-flow statement should be prepared on a monthly basis during the first year, on a quarterly basis during the second year, and on an annual basis thereafter. Items that you'll need to include in the cash-flow statement and the order in which they should appear are as follows:

• Cash sales . Income derived from sales paid for by cash.
• Receivables . Income derived from the collection of receivables.
• Other income . Income derived from investments, interest on loans that have been extended, and the liquidation of any assets.
• Total income . The sum of total cash, cash sales, receivables, and other income.
• Material/merchandise . The raw material used in the manufacture of a product (for manufacturing operations only), the cash outlay for merchandise inventory (for merchandisers such as wholesalers and retailers), or the supplies used in the performance of a service.
• Production labor . The labor required to manufacture a product (for manufacturing operations only) or to perform a service.
• Overhead . All fixed and variable expenses required for the production of the product and the operations of the business.
• Marketing/sales . All salaries, commissions, and other direct costs associated with the marketing and sales departments.
• R&D . All the labor expenses required to support the research and development operations of the business.
• G&A . All the labor expenses required to support the administrative functions of the business.
• Taxes . All taxes, except payroll, paid to the appropriate government institutions.
• Capital . The capital required to obtain any equipment elements that are needed for the generation of income.
• Loan payment . The total of all payments made to reduce any long-term debts.
• Total expenses . The sum of material, direct labor, overhead expenses, marketing, sales, G&A, taxes, capital and loan payments.
• Cash flow . The difference between total income and total expenses. This amount is carried over to the next period as beginning cash.
• Cumulative cash flow . The difference between current cash flow and cash flow from the previous period.

As with the income statement, you will need to analyze the cash-flow statement in a short summary in the business plan. Once again, the analysis statement doesn't have to be long and should cover only key points derived from the cash-flow statement.

The Balance Sheet

The last financial statement you'll need to develop is the balance sheet. Like the income and cash-flow statements, the balance sheet uses information from all of the financial models developed in earlier sections of the business plan; however, unlike the previous statements, the balance sheet is generated solely on an annual basis for the business plan and is, more or less, a summary of all the preceding financial information broken down into three areas:

To obtain financing for a new business, you may need to provide a projection of the balance sheet over the period of time the business plan covers. More importantly, you'll need to include a personal financial statement or balance sheet instead of one that describes the business. A personal balance sheet is generated in the same manner as one for a business.

As mentioned, the balance sheet is divided into three sections. The top portion of the balance sheet lists your company's assets. Assets are classified as current assets and long-term or fixed assets. Current assets are assets that will be converted to cash or will be used by the business in a year or less. Current assets include:

• Cash . The cash on hand at the time books are closed at the end of the fiscal year.
• Accounts receivable . The income derived from credit accounts. For the balance sheet, it's the total amount of income to be received that is logged into the books at the close of the fiscal year.
• Inventory . This is derived from the cost of goods table. It's the inventory of material used to manufacture a product not yet sold.
• Total current assets . The sum of cash, accounts receivable, inventory, and supplies.

Other assets that appear in the balance sheet are called long-term or fixed assets. They are called long-term because they are durable and will last more than one year. Examples of this type of asset include:

• Capital and plant . The book value of all capital equipment and property (if you own the land and building), less depreciation.
• Investment . All investments by the company that cannot be converted to cash in less than one year. For the most part, companies just starting out have not accumulated long-term investments.
• Miscellaneous assets . All other long-term assets that are not "capital and plant" or "investments."
• Total long-term assets . The sum of capital and plant, investments, and miscellaneous assets.
• Total assets . The sum of total current assets and total long-term assets.

After the assets are listed, you need to account for the liabilities of your business. Like assets, liabilities are classified as current or long-term. If the debts are due in one year or less, they are classified as a current liabilities. If they are due in more than one year, they are long-term liabilities. Examples of current liabilities are as follows:

• Accounts payable . All expenses derived from purchasing items from regular creditors on an open account, which are due and payable.
• Accrued liabilities . All expenses incurred by the business which are required for operation but have not been paid at the time the books are closed. These expenses are usually the company's overhead and salaries.
• Taxes . These are taxes that are still due and payable at the time the books are closed.
• Total current liabilities . The sum of accounts payable, accrued liabilities, and taxes.

Long-term liabilities include:

• Bonds payable . The total of all bonds at the end of the year that are due and payable over a period exceeding one year.
• Mortgage payable . Loans taken out for the purchase of real property that are repaid over a long-term period. The mortgage payable is that amount still due at the close of books for the year.
• Notes payable . The amount still owed on any long-term debts that will not be repaid during the current fiscal year.
• Total long-term liabilities . The sum of bonds payable, mortgage payable, and notes payable.
• Total liabilities . The sum of total current and long-term liabilities.

Once the liabilities have been listed, the final portion of the balance sheet-owner's equity-needs to be calculated. The amount attributed to owner's equity is the difference between total assets and total liabilities. The amount of equity the owner has in the business is an important yardstick used by investors when evaluating the company. Many times it determines the amount of capital they feel they can safely invest in the business.

In the business plan, you'll need to create an analysis statement for the balance sheet just as you need to do for the income and cash flow statements. The analysis of the balance sheet should be kept short and cover key points about the company.

Source: The Small Business Encyclopedia , Business Plans Made Easy, Start Your Own Business and Entrepreneur magazine.

Business Plan Guide

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick Red Arrow

• U.S. Diners Are Feeding the $1 Trillion Restaurant Industry Like Never Before. Here's Why — and What They're Hungry for, According to Resy's CEO.
• Lock SearchGPT is About to Change How Customers Find Your Business. Are You Ready?
• AI Startups Received $2.9 Billion in Funding Last Quarter. These 3 U.S. Companies Received a Lot of It — And You've Probably Never Heard of Them.
• Lock Gen Xers Earning Up to $100,000 a Year Won't Retire Like Boomers Did. They're Embracing This Strategy Instead.
• 'We Are Not Red or Blue — We Are Golden': McDonald's Tells Employees It's Non-Political After Trump Visit
• Lock In Her Late 30s, She Pursued Another Creative Side Hustle — Then Turned It Into a Multimillion-Dollar Business

Most Popular Red Arrow

You have one month left to buy a house, according to barbara corcoran. here's why..

"If you are planning on waiting a year and seeing where interest rates go, you are out of your mind," Corcoran said.

These 3 Side Hustles Make the Most Money While Working Fewer Hours, According to a New Survey

The survey also found that having a side hustle doubled as a path to becoming more employable.

The McRib Is Back, But Only at Select McDonald's — Here's Where to Find It

This scarcity is nothing new. In 2022, McDonald's announced a "Farewell Tour" for the McRib, suggesting that it might be the last time customers could get their hands on it.

This New Restaurant Is Banking on One Dish — Because It's the Only Entrée on the Menu

The new hotspot is gaining buzz on social media for its innovative yet super simple concept.

I Made $14,000 in 1 Week With a Spontaneous Halloween Costume Side Hustle — Here's How

Sabba Keynejad was in art school when he started to refine his entrepreneurial skills.

This Is the Goal-Setting Method Shohei Ohtani Learned in High School That Helped Get Him to the World Series

The MLB superstar's success did not come as a surprise to him. He had a plan.

Successfully copied link

• For educators
• English (US)
• English (India)
• English (UK)
• Greek Alphabet

This problem has been solved!

You'll get a detailed solution from a subject matter expert that helps you learn core concepts.

Question: (3 5. Which of the following is NOT an element of a traditional business plan? CH 24 A. Financial plan B. Marketing plan C. Organization plan D. Distribution plan

This AI-generated tip is based on Chegg's full solution. Sign up to see more!

Review the three major elements of a business plan: organization, marketing, and financial aspects.

The correct answer is option D Explanation:- A business plan consists …

Not the question you’re looking for?

Post any question and get expert help quickly.

• Search Search Please fill out this field.

What Is a Business Plan?

Understanding business plans, how to write a business plan, common elements of a business plan, the bottom line, business plan: what it is, what's included, and how to write one.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

• How to Start a Business: A Comprehensive Guide and Essential Steps
• How to Do Market Research, Types, and Example
• Marketing Strategy: What It Is, How It Works, How To Create One
• Marketing in Business: Strategies and Types Explained
• What Is a Marketing Plan? Types and How to Write One
• Business Development: Definition, Strategies, Steps & Skills
• Business Plan: What It Is, What's Included, and How to Write One CURRENT ARTICLE
• Small Business Development Center (SBDC): Meaning, Types, Impact
• How to Write a Business Plan for a Loan
• Business Startup Costs: It’s in the Details
• Startup Capital Definition, Types, and Risks
• Bootstrapping Definition, Strategies, and Pros/Cons
• Crowdfunding: What It Is, How It Works, and Popular Websites
• Starting a Business with No Money: How to Begin
• A Comprehensive Guide to Establishing Business Credit
• Equity Financing: What It Is, How It Works, Pros and Cons
• Best Startup Business Loans
• Sole Proprietorship: What It Is, Pros & Cons, and Differences From an LLC
• Partnership: Definition, How It Works, Taxation, and Types
• What is an LLC? Limited Liability Company Structure and Benefits Defined
• Corporation: What It Is and How to Form One
• Starting a Small Business: Your Complete How-to Guide
• Starting an Online Business: A Step-by-Step Guide
• How to Start Your Own Bookkeeping Business: Essential Tips
• How to Start a Successful Dropshipping Business: A Comprehensive Guide

A business plan is a document that outlines a company's goals and the strategies to achieve them. It's valuable for both startups and established companies. For startups, a well-crafted business plan is crucial for attracting potential lenders and investors. Established businesses use business plans to stay on track and aligned with their growth objectives. This article will explain the key components of an effective business plan and guidance on how to write one.

Key Takeaways

• A business plan is a document detailing a company's business activities and strategies for achieving its goals.
• Startup companies use business plans to launch their venture and to attract outside investors.
• For established companies, a business plan helps keep the executive team focused on short- and long-term objectives.
• There's no single required format for a business plan, but certain key elements are essential for most companies.

Investopedia / Ryan Oakley

Any new business should have a business plan in place before beginning operations. Banks and venture capital firms often want to see a business plan before considering making a loan or providing capital to new businesses.

Even if a company doesn't need additional funding, having a business plan helps it stay focused on its goals. Research from the University of Oregon shows that businesses with a plan are significantly more likely to secure funding than those without one. Moreover, companies with a business plan grow 30% faster than those that don't plan. According to a Harvard Business Review article, entrepreneurs who write formal plans are 16% more likely to achieve viability than those who don't.

A business plan should ideally be reviewed and updated periodically to reflect achieved goals or changes in direction. An established business moving in a new direction might even create an entirely new plan.

There are numerous benefits to creating (and sticking to) a well-conceived business plan. It allows for careful consideration of ideas before significant investment, highlights potential obstacles to success, and provides a tool for seeking objective feedback from trusted outsiders. A business plan may also help ensure that a company’s executive team remains aligned on strategic action items and priorities.

While business plans vary widely, even among competitors in the same industry, they often share basic elements detailed below.

A well-crafted business plan is essential for attracting investors and guiding a company's strategic growth. It should address market needs and investor requirements and provide clear financial projections.

While there are any number of templates that you can use to write a business plan, it's best to try to avoid producing a generic-looking one. Let your plan reflect the unique personality of your business.

Many business plans use some combination of the sections below, with varying levels of detail, depending on the company.

The length of a business plan can vary greatly from business to business. Regardless, gathering the basic information into a 15- to 25-page document is best. Any additional crucial elements, such as patent applications, can be referenced in the main document and included as appendices.

Common elements in many business plans include:

• Executive summary : This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations.
• Products and services : Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents , proprietary technology , and research and development (R&D) information.
• Market analysis : Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors.
• Marketing strategy : Outline the company's plans to attract and retain customers, including anticipated advertising and marketing campaigns. Describe the distribution channels that will be used to deliver products or services to consumers.
• Financial plans and projections : Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests.

Investors want to see a clear exit strategy, expected returns, and a timeline for cashing out. It's likely a good idea to provide five-year profitability forecasts and realistic financial estimates.

2 Types of Business Plans

Business plans can vary in format, often categorized into traditional and lean startup plans. According to the U.S. Small Business Administration (SBA) , the traditional business plan is the more common of the two.

• Traditional business plans : These are detailed and lengthy, requiring more effort to create but offering comprehensive information that can be persuasive to potential investors.
• Lean startup business plans : These are concise, sometimes just one page, and focus on key elements. While they save time, companies should be ready to provide additional details if requested by investors or lenders.

Why Do Business Plans Fail?

A business plan isn't a surefire recipe for success. The plan may have been unrealistic in its assumptions and projections. Markets and the economy might change in ways that couldn't have been foreseen. A competitor might introduce a revolutionary new product or service. All this calls for building flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be Updated?

How frequently a business plan needs to be revised will depend on its nature. Updating your business plan is crucial due to changes in external factors (market trends, competition, and regulations) and internal developments (like employee growth and new products). While a well-established business might want to review its plan once a year and make changes if necessary, a new or fast-growing business in a fiercely competitive market might want to revise it more often, such as quarterly.

What Does a Lean Startup Business Plan Include?

The lean startup business plan is ideal for quickly explaining a business, especially for new companies that don't have much information yet. Key sections may include a value proposition , major activities and advantages, resources (staff, intellectual property, and capital), partnerships, customer segments, and revenue sources.

A well-crafted business plan is crucial for any company, whether it's a startup looking for investment or an established business wanting to stay on course. It outlines goals and strategies, boosting a company's chances of securing funding and achieving growth.

As your business and the market change, update your business plan regularly. This keeps it relevant and aligned with your current goals and conditions. Think of your business plan as a living document that evolves with your company, not something carved in stone.

University of Oregon Department of Economics. " Evaluation of the Effectiveness of Business Planning Using Palo Alto's Business Plan Pro ." Eason Ding & Tim Hursey.

Bplans. " Do You Need a Business Plan? Scientific Research Says Yes ."

Harvard Business Review. " Research: Writing a Business Plan Makes Your Startup More Likely to Succeed ."

Harvard Business Review. " How to Write a Winning Business Plan ."

U.S. Small Business Administration. " Write Your Business Plan ."

SCORE. " When and Why Should You Review Your Business Plan? "

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

What Are the 8 Key Elements of Success?

• The executive summary serves as the introduction to a business plan, providing a concise overview of the startup's core components and is critical for securing investors' attention.
• Crafting an engaging executive summary involves starting with the business idea, defining the problem, presenting the solution, identifying the target market, describing the business model, sharing financial projections, specifying funding requirements, and outlining milestones and objectives.
• Tailoring language to resonate with the target readership and keeping the summary brief but impactful are crucial for success.
• Highlighting unique value proposition, showcasing team strength, using persuasive language, and including social proof are essential elements of an effective executive summary.
• Using AI-powered tools for efficient market research, staying ahead with real-time industry trend analysis, and employing competitive intelligence software for strategic decision-making against rivals are vital for market analysis.

Ever felt like navigating the business world without a map? You're not alone. That's where the 8 key elements of a business plan come to the rescue, guiding entrepreneurs through the treacherous terrain of startups and expansions. But what makes these elements so vital, and how can you master them to secure your venture's success? In this post, we'll dive into each component—starting with an executive summary that captivates investors, to market analysis that outsmarts competitors, all the way to financial projections that prove your business is a future legend. Stick around for insider tips on crafting a plan so compelling it practically turns dreams into boardroom reality. Ready to plot your path to triumph? Let's chart the course together!

Table of Contents

The Executive Summary: A Snapshot of Your Business

Imagine you're stepping into an elevator with a potential investor. You've got just a minute to pitch your business idea—what do you say? That's the essence of an executive summary. It's the appetizer to the feast that is your business plan structure , giving readers a taste of what's to come.

What is the purpose of the executive summary?

The executive summary serves as the introduction to your business plan, providing a concise overview of your startup's core components. Think of it as a movie trailer; it needs to capture interest, highlight key points, and leave people wanting more. It’s critical because oftentimes, it's all that busy investors or stakeholders might read.

"A well-crafted executive summary is pivotal for securing investors' attention and setting the tone for your business plan."

How to craft a compelling executive summary

Here are some ingredients for creating an engaging and informative executive summary:

Start With Your Business Idea: Just like AI revolutionizes industries with fresh concepts, begin your executive summary with a clear statement about what your business does.

Define The Problem: Pinpointing the problem is like identifying why we need AI; it shows there's room for improvement and innovation.

Present Your Solution: Offer a clear solution—your product or service—that addresses this problem effectively.

Target Market: Define who needs your solution just like how AI targets specific tasks —who will benefit from what you're offering?

Business Model: Describe how you'll make money, whether through sales, subscriptions, or other revenue streams.

Financial Projections: Give a snapshot of projected financials to show potential growth.

Funding Requirements: If you’re seeking investment, be transparent about how much funding you need and how it will be used.

Milestones & Objectives: Outline what you've achieved so far and future goals that paint a picture of growth and success.

Remember that each element should align with one another like cogs in a machine—a machine powered by innovative AI solutions in today's startups.

Tailoring To Your Audience

When crafting this section, think about who’s reading it—is it someone from Silicon Valley or perhaps an investor looking for their next big venture? Use language they understand and present information they care about.

Keeping It Short And Sweet

Your executive summary should be brief but impactful—like sending out an SOS signal; make sure every word counts! An overly long summary can quickly lose reader interest—it’s about making every sentence hit home with precision and clarity.

Highlighting Competitive Edges

In today's competitive market where AI shapes ideal beauty standards , highlighting what sets you apart is crucial. Emphasize unique selling points (USPs) that distinguish your startup from others in the field.

Showcasing Team Strength

Investors invest in people as much as ideas. Introduce key team members with relevant experience and skills similar to showcasing stars in an AI-generated movie concept at Generate Fresh AI Movie Concepts .

Using Persuasive Language

Persuasion isn't just for lawyers or salespeople; use persuasive language that draws readers in and convinces them of your startup's potential—much like convincing someone why they need AI Business Services .

Including Social Proof

Just as testimonials boost trust in products or services online, including social proof such as customer testimonials or expert endorsements can add credibility to your business plan right off the bat.

By following these tips on crafting an effective executive summary, you’ll set up investors for the main course—the rest of your comprehensive business plan where they can savor each detail at their leisure.

• An effective executive summary must capture attention quickly while conveying key aspects of your startup.
• Tailor language to resonate with target readership; clarity over complexity wins hearts (and investments).

Company Description: Painting a Clear Picture

When embarking on the thrilling journey of starting your own business, one of the first steps is to lay out a solid business plan. The company description is a cornerstone of this plan, setting the stage for everything that follows. It's not just about what your company does; it's about telling a story that resonates with readers and potential investors. Let's dive into crafting a compelling narrative for your startup.

What Should Be Included in the Company Description?

Your company description should be more than just a dry recounting of facts. It’s an opportunity to introduce your vision, mission, and the problems you aim to solve. Here are some essentials:

• The Basics : Start with your company name, location, and when you began or plan to begin operations.
• Mission Statement : This is your rallying cry—the heart of why your business exists.
• Objectives : Clearly state what you intend to achieve in the short and long term.
• Business Model : Explain how you will make money and sustain the business.
• Target Market : Describe who needs your product or service and why they can't do without it.

Imagine weaving these elements into a narrative that captures attention like an engrossing novel. Your goal? To make them root for you from page one.

Showcasing Your Company's Unique Value Proposition

Every superhero has something that makes them stand out—so does your company! The unique value proposition (UVP) is where you shine a spotlight on what sets you apart from competitors. Here's how:

• Identify Your Superpower : What can you offer that no one else can? Is it an innovative product feature or perhaps unparalleled customer service?
• Speak Their Language : Address specific pain points that resonate with your target audience using terms they understand and appreciate.
• Prove It : Support claims with evidence like testimonials or data showing efficacy.

"A UVP is not just about being different; it's about being boldly relevant in a way that compels action."

Now, let’s take all these ingredients and craft them into something magical—a company description for our hypothetical AI startup focused on helping entrepreneurs brainstorm ideas.

Example AI Inc.: A Beacon for Budding Entrepreneurs

Founded in 2024, Example AI Inc., nestled in the bustling tech hub of Silicon Valley, is more than just another tech firm—it’s a dream machine for aspiring moguls and innovators across the globe. Our mission is simple yet audacious: To ignite entrepreneurial spirits by harnessing artificial intelligence to generate groundbreaking business ideas.

We've devised an intuitive platform where creativity meets technology—our sophisticated AI-powered Idea Generator ( Revolutionizes Tech with AI Startup Idea Generator ). With its unique algorithmic flair, it taps into industry trends and user interests to conjure up tailored suggestions poised for success.

Our objectives are twofold: democratize idea generation making entrepreneurship accessible to all and become synonymous with startup innovation worldwide by 2030.

At Example AI Inc., we're not just selling software—we're building bridges between imagination and reality. Our target market spans from seasoned entrepreneurs looking for their next venture ( Transform Your Future with Business Ideas to Venture Into ) to college students hungry for side hustles ( Profitable Simple Food Business Ideas for Students ). We cater to anyone yearning to leave their mark on the world but unsure where to start.

What truly distinguishes us? Our commitment to nurturing innovation through technology—our platform doesn’t just spit out ideas; it guides users through validating ( Validate Your AI Business Idea ) and refining them until they shine bright enough to light up markets.

Join us at Example AI Inc., where every click brings you closer to launching the next big thing—an endeavor not only profitable but also passionately yours.

• Crafting an engaging company description involves painting a vivid picture of your startup’s mission, objectives, UVP, target market, and business model.
• Highlighting what sets your business apart is crucial—showcase your UVP by addressing specific pain points with relatable solutions.

Understanding Your Market: The Market Analysis

When you're crafting a business plan, the market analysis section is like your startup's compass. It guides you through the competitive landscape, shines a light on opportunities and threats, and helps you navigate towards success. Let's dive into how AI can elevate this crucial part of your business plan key elements .

Conducting Thorough Market Research

Embarking on market research is akin to setting out on a grand adventure—you never know what treasures you'll uncover until you start digging. And in today's world, AI tools are the shovels that help unearth these gems of insight.

AI-driven platforms can process vast amounts of data from social media chatter, search trends, and online behavior to give you an edge. For instance, imagine harnessing the power of an AI startup idea generator that not only proposes innovative concepts but also predicts their viability in the current market.

"The goal is to turn data into information, and information into insight."

This quote encapsulates why it's not just about collecting data; it's about making sense of it. AI does this faster and more accurately than we ever could alone.

Analyzing Industry Trends and Competitor Landscape

To stay ahead in the game, understanding industry trends is non-negotiable. Think of AI as your personal trend-spotter—constantly scanning for shifts in consumer behavior or new technologies that could disrupt your sector.

Moreover, competitor analysis isn't just about knowing who else is playing in your sandbox; it's about learning from them too. With tools like analysis software , startups can dissect competitors' strategies to identify gaps they can fill or advantages they can exploit.

Now let’s explore these subtopics further by breaking down each element:

Diving Deep with AI-Powered Market Research Tools

Market research has traditionally been a time-consuming task involving surveys, focus groups, and field observations. But now, with AI stepping into the picture, things have taken a revolutionary turn. Startups can use AI-powered tools to quickly analyze customer sentiments across different demographics or even predict future trends based on historical data.

Imagine leveraging business analysis questions answered not by humans prone to bias but by unbiased algorithms that crawl through big data for precise insights!

Staying Ahead with Real-Time Industry Trend Analysis

Trends come and go with lightning speed—especially in tech-related industries—and staying updated is vital for survival. Using AI systems that track keywords across various platforms provides real-time alerts on emerging patterns before they become mainstream knowledge.

A great resource here would be checking out resources on how to explore top small business ideas which utilize trend analysis techniques powered by artificial intelligence.

Dissecting Your Competition with Cutting-edge Competitive Intelligence Software

Competitive intelligence (CI) software offers an eagle-eye view over your rivals' actions—from pricing strategies to marketing campaigns. These insights allow startups to make informed decisions rather than shots in the dark.

Integrating CI within your market analysis ensures you're always one step ahead—or at least not lagging behind due to lack of knowledge. For startups looking for inspiration or validation for their products or services, exploring options such as an AI project ideas generator could provide both competitive insight and creative sparks.

By implementing these practices into your market analysis routine using AI tools and methodologies, startups stand a better chance at carving out their niche successfully.

Take Away Points:

• Use AI-powered tools for efficient market research that delivers actionable insights.
• Keep abreast of industry trends with real-time updates from intelligent systems.

Organizing for Success: Organization and Management

When diving into the world of startups, especially those harnessing the power of AI, understanding the 8 key elements of a business plan is akin to deciphering a treasure map. You're embarking on an adventure filled with potential and promise, but without the right framework, it's easy to get lost in the entrepreneurial wilderness. Today, we'll focus on two essential components that are often overshadowed by their flashier counterparts like market analysis and financial projections—defining your organizational structure and highlighting key management team members' roles and expertise.

Defining Your Organizational Structure

Imagine building a house without a blueprint. You might end up with a door leading nowhere or a window overlooking another wall—charming quirks in architecture but disastrous in business. Your organizational structure is this blueprint; it’s how you lay out the different parts of your company to ensure everything runs smoothly.

For an AI startup, think lean but scalable. Start with the core roles essential to your operation—the AI developers, data scientists, product managers—and consider how these positions will evolve as your company grows. Will your data scientists need support staff? How will project managers keep up with multiple products or services as they come online? Planning this early helps avoid growing pains later on.

An excellent place to start is by exploring top small business ideas that can provide insights into structuring companies efficiently. These examples can spark ideas for setting up teams that are flexible yet robust enough to handle the rapid pace of innovation in AI.

Highlighting Key Management Team Members' Roles and Expertise

Your management team is more than just names on an org chart; they're the captains guiding your startup ship through stormy seas of competition and market fluctuations. Their expertise needs to shine through in your business plan because investors aren't just investing in an idea—they're investing in people.

Highlight each member's background, focusing on accomplishments relevant to their role in your startup. For example, if you have a CTO who's successfully brought AI products to market before, make that a centerpiece of their profile. The experience doesn't always have to be industry-specific; transferable skills from other sectors can bring fresh perspectives.

Don't forget soft skills either! Leadership qualities, adaptability, and creative problem-solving are invaluable assets for any startup venturing into uncharted territories like AI. A resourceful way to flesh out these attributes is by referring them to articles like AI revolutionizes content creation , which showcases how creativity melds with technical know-how in successful ventures.

"The strength of the team is each individual member. The strength of each member is the team." This quote encapsulates why detailing each person's role isn't just about their tasks—it’s about illustrating how they contribute uniquely to the collective success.

By now you might wonder: "Okay buddy, I've got my org chart ready and my management bios polished—but what next?" Well dear reader, let me tell you about weaving these elements together into one compelling narrative for your business plan…

Weaving Your Organizational Tapestry

Your organizational structure should not only outline current roles but also anticipate future hires as milestones are reached. It shows foresight—a trait investors love seeing in founders. Use tools like 2024 innovative business plan startup ideas for inspiration on progressive structures that align with forward-thinking industries like AI.

As for showcasing management expertise? It's not just listing qualifications; it’s demonstrating thought leadership within their respective fields. Encourage them to publish articles or speak at conferences—actions that echo authority within AI circles—and link back these achievements within your plan ( validating startup idea readiness could serve as an ideal platform).

Tailoring To Your Startup's Unique DNA

Every organization has its own culture—its DNA—that shapes decisions from hiring practices to product development philosophies. Make sure this unique cultural fingerprint comes across when detailing both structure and personnel because it adds depth beyond mere logistics or credentials; it gives soul to your enterprise ( spark creativity with idea AI generator might offer some unconventional ways forward).

Navigating Through Challenges

Challenges are inevitable; whether they stem from technological hurdles or staffing issues (maybe both!). Address potential setbacks head-on within this section by discussing contingency plans already baked into your organization’s fabric (for example: cross-training programs or partnerships). And remember resources like ensure business safety risk analysis and mitigation can help guide you through crafting resilient strategies against uncertainties ahead.

Financial Roadmap: Funding Request and Financial Projections

When you're in the thick of creating a business plan, especially for an AI startup, it's like piecing together a puzzle where every element is crucial. Among these, the financial section is the heart that pumps life into your vision. It's not just about numbers; it's about storytelling through data—showing potential investors how their funds will catapult your idea from concept to market leader. So let's break down the " 8 key elements of a business plan " with a focus on financial projections and funding requests.

Outlining the Funding Requirements and Utilization

Imagine this: You're sitting across from an investor, palms sweaty, pitching your groundbreaking AI-driven service. You've explained the market need, your team's expertise, and then comes the big question: "How much do you need?" This moment is where your business plan must shine.

"A goal without a plan is just a wish," they say. And in the world of startups, wishes don't secure checks.

Your funding request should be as clear as daylight. Specify how much capital you need over the next five years and detail how you'll use it. Will it go towards research and development ( R&D )? Marketing? Hiring top-notch talent? Or perhaps ensuring that your tech infrastructure can handle thousands of users simultaneously?

Investors want to know their money isn't going into a black hole but rather fueling specific growth aspects of your startup. They're interested in seeing their investment grow along with your company.

Creating Realistic and Compelling Financial Projections

Here’s where many entrepreneurs get cold feet—financial projections can seem like peering into a crystal ball filled with spreadsheets and guesswork. But fear not! The key here is to build realistic forecasts based on solid assumptions grounded in market research.

Start by showcasing sales forecasts—how many customers do you anticipate acquiring each year? What's the average revenue per user (ARPU)? Also, delve into cost structures: delineate fixed costs from variable ones so investors can see scalability at play.

Now let’s talk profits—or for early-stage startups, the path to profitability. Investors are often more patient with AI startups knowing that R&D takes time and money before monetization kicks in. Nevertheless, they'll want to see a break-even analysis and when they can expect returns.

It’s also wise to prepare cash flow statements—this tells investors whether you have the liquidity to stay afloat until revenue starts rolling in consistently. Remember, cash flow issues sink more ships than poor profitability.

Incorporate graphs and charts because visual aids make data digestible at a glance—a critical factor when pitching to busy investors who may not have time for deep dives into rows of numbers.

Case Studies & Market Comparables

Use case studies or comparables from similar companies within the AI industry ( here are some innovative ideas ). This comparative analysis helps validate your projections by showing what has been achievable by others in related fields or markets.

Sensitivity Analysis

This is about showing how changes in key variables affect profitability or valuation—essential for demonstrating resilience against market volatility or unexpected challenges ( AI businesses face plenty )!

Contingency Plans

Lastly, don’t shy away from addressing potential risks head-on with contingency plans in place—it speaks volumes about your strategic acumen as an entrepreneur ( and there are always risks )!

• Clear funding requests paired with detailed utilization plans reassure investors about their capital allocation.
• Realistic financial projections serve as proof of potential ROI while reflecting thorough market understanding.
• Visual aids alongside case studies bolster credibility—investors appreciate clarity backed by industry parallels.

Frequently Asked Questions

What are the 8 key elements of a business plan ? The 8 key elements of a business plan include the executive summary, company description, market analysis, organization and management, product line or service, marketing and sales, funding request, and financial projections.

Why is the executive summary an important element of a business plan? The executive summary is crucial as it provides a concise overview of the entire business plan, allowing potential investors and stakeholders to quickly grasp the key points and make informed decisions about further engagement with the business .

How does the market analysis contribute to a business plan? The market analysis section provides valuable insights into the industry, target market, and competitors. It helps in demonstrating a thorough understanding of the market dynamics and identifying opportunities and challenges that the business may encounter.

What role does financial projection play in a business plan? Financial projections outline the expected financial performance of the business over a specific period. They are essential for assessing the feasibility and potential profitability of the venture, aiding investors in evaluating the risks and returns associated with the business .

Why is it important to include a funding request in a business plan? The funding request section outlines the amount of funding needed by the business and how it will be utilized. It helps in presenting a clear picture of the financial requirements and justifying the investment needed to support the business's growth and operations.

• X (Twitter)

Related posts:

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• More Networks

• Accountancy
• Business Studies
• Organisational Behaviour
• Human Resource Management
• Entrepreneurship

Business Plan | Elements and How to Write ?

What is business plan.

Business plan is defined as a written document that outlines the goals, strategies, and detailed plans for a business. It serves as a roadmap for how a business will operate and achieve its objectives. A well-structured business plan typically includes information on the company’s mission, vision, products or services, target market, competitive analysis, marketing and sales strategies, organizational structure, operational processes, and financial projections. So in simple words, a documented roadmap for the functioning of the business or organization is known as a Business plan. It serves as a roadmap for entrepreneurs and business owners, providing a clear and comprehensive overview of their business idea, strategy, and financial projections.

Table of Content

Purpose of business plan, elements of a business plan, things to keep in mind while writing a business plan.

1. Strategic Planning: It helps in long-term strategic planning by setting goals and outlining the steps needed to achieve those targets and goals.

2. Funding: When seeking financing from investors or lenders, a business plan is often required to demonstrate the viability of the business and its potential for profitability.

3. Decision Making: It assists in making informed decisions by providing a comprehensive overview of the business, allowing stakeholders to evaluate risks and opportunities.

4. Guidance: It helps the business owner and management team understand the direction and goals of the business. It provides a clear path for how the company intends to reach its objectives.

5. Communication: A business plan is a tool for communicating the business’s vision and strategy to employees, potential investors, lenders, partners, and other stakeholders.

1. Market Analysis: Research the industry and target market. Define the target audience and outline the size, demographics, and needs of the potential customers. Analyse competitors and identify unique selling points.

2. Executive Summary: This is a brief overview of the entire business plan. It should provide a snapshot of the business, including its mission, goals, products or services, target market, and financial highlights.

3. Company Description: Describe the business in more detail. Explain the company’s history, mission, vision, and values. Provide information about legal structure (e.g., LLC, corporation) and location.

4. Management and Organisation: Introduce management team and key personnel. Highlight their qualifications and experience. Provide an organisational chart if applicable.

5. Financial Projections: Present financial forecasts, including income statements, balance sheets, and cash flow statements. Discuss funding needs if seeking investment or financing.

6. Products or Services: Describe what the business is selling. Provide detailed information about products or services, including their features, benefits, and any intellectual property the business may have.

7. Operating Plan: Detail the day-to-day operations of the business. Discuss location, equipment, suppliers, and any strategic partnerships. Explain the production process if the business is manufacturing products.

8. Marketing and Sales Strategy: Explain how the business plans to market and sell products or services.

Writing a business plan is a crucial step in launching or growing a business. Here are five important things to do or keep in mind while writing a business plan:

1. Set Clear and Realistic Goals: Define clear and measurable business objectives. The goals should be specific, measurable, attainable, relevant, and time-bound (SMART). Determine both short-term and long-term goals, including financial targets, market share, and growth milestones.

2. Research and Market Analysis: Conduct thorough research on the respective industry, market, and target audience. Gather data and statistics to support market analysis. Provide evidence of a viable market opportunity for your product or service.

3. Outline a Solid Marketing and Sales Strategy: Describe the marketing and sales approach. Detail pricing strategy, distribution channels, and promotional efforts. Highlight unique selling propositions (USPs) and what is the plan to attract and retain customers. Develop a sales forecast to estimate future revenues based on marketing and sales efforts.

4. Create a Detailed Financial Section: Develop comprehensive financial projections, including income statements, balance sheets, and cash flow statements. Be realistic in financial assumptions, considering factors like sales forecasts, expenses, pricing, and funding needs. Include a break-even analysis to determine when the business will become profitable.

5. Address Potential Risks and Mitigations: Identify and assess potential risks and challenges that businesses may face. These could include market competition, regulatory changes, or economic downturns.

In summary, a business plan is a strategic document that provides a detailed roadmap for a business, helping it define its objectives, strategies, and tactics for success. It is a crucial tool for both planning and communication within the organization and with external stakeholders.

Similar Reads

• Geeks Premier League
• Geeks Premier League 2023

Please Login to comment...

Improve your coding skills with practice.

What kind of Experience do you want to share?

Writing a business plan: Your step-by-step guide

Learn how to write a sound business plan to help set up your business for success.

Learning how to write a sound business plan is an essential first step toward creating a successful business. Simply put, a business plan outlines your business’s overall goals, strategies, and operations, providing a long-term vision and plan for your entire business. It’s not to be confused with a business proposal, which is a sales document that pitches a specific business idea or product to a potential client or investor. A business plan can help you clarify what you want to achieve and lay out exactly how to reach those goals. This, in turn, can help you motivate your team, promote your business, and make key decisions.

A strong business plan serves as an important communication tool to potential investors and lenders. It will allow you to articulate your current financial status, sources of revenue, and how you plan to meet revenue projections. Although a business plan isn’t always required when applying for all types of credit, it often plays a significant role in SBA loan applications . While no two business plans are alike, every plan should cover the following elements.

Executive summary: Define your business

Your plan’s executive summary is your chance to introduce the business — so it needs to be concise and compelling. The summary should give a brief recap of the history and background of your business in a manner that will make the reader want to learn more about your plan. Sometimes it’s helpful to write this last — after you’ve spent some time contemplating and articulating all the details of your business.

Company summary: Delve into the details

Your business plan should explain what your product or service is and why people and businesses will want to purchase it. Be sure to highlight areas where your product or service has a clear advantage over the competition. Also, include details about pending or established copyrights or trademarks, and present or future plans for research and development (R&D).

Market analysis: Outline your strategy

A market analysis centers on the marketability of your business, who your competitors are and how you fit into the competitive landscape. In the analysis, give detailed information about your business’s industry, including the size of the market, your target market, the market need, and barriers to entry such as supply issues and regulation. Also, include information on any market tests you have conducted and identify your direct and indirect competition.

Marketing plan: Identify your niche

Here, you’ll highlight how you plan to promote your business and generate revenue. Describe in detail what your product or service does and how it will help consumers. Explain how your product is unique from others on the market, and how you will promote your business and generate revenue. Also, provide details about the product life cycle and any intellectual property issues. (Note: Some of this may reiterate or expand upon information elsewhere in your business plan.) You can protect your intellectual property , which can include names, designs and automated process, through trademarks, copyrights, non-disclosure agreements and more.

Management overview: Introduce your leaders

To highlight your human capital, describe how your business will be organized in terms of structure and leadership. Let your reader know who does what and what qualifications they have. Summarize this in your writeup, but consider providing relevant resumes, too.

Financial summary: Develop your financial plan

The financial summary, which includes details about your company’s funding sources, existing debt, any grants , as well as financial analysis, are crucial areas to lay out in detail. Explain the amount of funding your business needs and provide supporting financial data as well as financial projections . Include documents that communicate your business’s current financial status, such as income statements, balance sheets , and cash flow statements. List your expectations for revenues as well as the cost of your goods, rent, fuel, utilities, salaries, and other expenses.

The final step: Organize it logically

There are many ways you can organize the information mentioned above so you can share it with potential investors and lenders, current and prospective team members and managers, and anyone else who needs to understand your vision.

Do your research and find a business plan format that works for your business. There can be different types of plans for different types of readers, i.e. investors vs. employees, so you can modify your plan depending on your audience.

A few things to keep in mind:

• Make it easy to find key info . Create a cover page and table of contents, so information is easy to find. Also consider using dividers with tabs if you’re printing it out and putting it in a binder.
• Add more details as they emerge . Depending on what you do or sell, you may also want to add a section on Action Plans, which includes information on regulations, legal and compliance issues, safety processes, operational and management plans, an employee handbook, delineations of job descriptions of your staff, and anything else you’ve put on paper (or into a digital document).
• Consider using an Appendix . This is where you can store any supporting documents, including financial and market analyses, logo and branding examples, team resumes, and so on.

Your business plan should reflect changes in your business, the industry or the market. Make changes as necessary to incorporate the changing needs of customers or changing economic conditions in order to keep your plan current. Treating your business plan as a living document — and revising it regularly — can help you stay ahead of the competition and exceed your dreams.

Learn more:

For additional support, make an appointment with a Wells Fargo banker who can help you develop your business plan. There are also several resources available to get you started with your business and business plan. Here are a few:

• U.S. Small Business Administration
• America’s Small Business Development Centers Network
• SCORE Association

You might also like

A business owner’s guide to balance sheets

Preparing balance sheets can help attract investors by providing a clear picture of your financials.

Three key partners for managing your small business finances

Learn how your business can benefit from working with accountants, financial advisors, and bankers.

We’re here for you

Talk with a banker

Find products and services

More support.

Expand your business with interactive tools and knowledgeable partners ready to help

Work with Wells Fargo as a supplier

Learn about the broad range of opportunities we help provide diverse suppliers and how you can start working with us.

Funding for your business

Access funds for growth, cash flow or commercial reaI estate.

Move your business forward

Easy-to-use products, tools, and resources for small businesses

onEntrepreneur is an online magazine centered on business, finance, marketing, technology and more. We are regularly updated – sign up with our newsletter to send the updates directly to your inbox.

Follow Us on Google News

Subscribe to Updates

Get the latest creative news and ideas from onEntrepreneur about business, finance, marketing and more.

Recent Posts

Here’s how your business can make a positive first impression on customers, how to customize employee uniforms for maximum brand impact, building a strong team for your startup, how do hard money lenders assess the after repair value of a fixer upper.

The 7 Elements of a Business Plan

“If you fail to plan, you are planning to fail” -Benjamin Franklin

Creating a thorough business plan for a new or evolving venture is essential. A convincing blueprint is a must for soliciting investors, but its value extends beyond that, as creating a business plan forces  you  to carefully examine your company’s goals, strategies and potential.

Using a template will help ensure your business plan is presentable and digestible. But just as every business is unique, so is every business plan, and there’s no one universally expected format. At the very least, though, a good plan will generally contain some version of these 7 elements of a business plan.

1. Executive Summary

Nailing this abstract is crucial, especially if you’re using your business plan to attract outside funding. This short section should include highlights from all the sections to follow and give a concise overview of the company. Pros suggest writing this introductory section last, enabling you to pull from and summarize what you’ve already laid out.

2. Business Description

What does your company do, and how will it make money? While straightforward, this section is hugely important. A thorough description should answer the questions: why was the business formed, what’s the mission, business model and are there any existing strategic relationships to be leveraged? It should include everything from basic identifying information (e.g. location, principal owners, legal structure, etc.) to more nuanced analysis of your market opportunity, capital requirements and projected growth.

3. Market Analysis

Assess your competition and then differentiate your business. Begin by including projections and trends for your industry in general, including the market’s size and growth potential. Then par down to discuss your core target market, including a profile of your idealized “best customer.” If you’ve had the budget to pay for market research, this is the place to include it. If not, insiders suggest providing testimonials from existing customers as a next-best option.

4. Organization and Management

Discussing the qualifications and backgrounds of specific members of your management team is key to winning investor confidence. If you choose to seek outside funding, many venture capitalists value the team over the product, so prove that you have an experienced and talented squad, making sure to include how each person and position will directly help you meet your business goals. Also, take the time to clarify which positions will hold what responsibilities.

5. Sales Strategies

This section should include pricing policy (how will you price your product or service? what is the relationship between your price point and image?), distribution (how will you get your product to market? how do your competitors get theirs to market?) and promotional efforts (advertising, sales promotions, etc.). Make sure to include any relevant insights about website development, public relations (both traditional and social), trade show attendance and sampling.

6. Funding Requirements

Here you’ll need to provide not a single value but a range of best and worst case numbers for the amount of funding required in order to expand your business at specific benchmarks.

7. Financial Projections

This section quantifies what you’ve discussed previously about organization and marketing, so it makes sense to write this only after completing those other sections. As opposed to backward-looking accounting, this section should feature forward-looking projections, meaning projected profit-and-loss statements, balance sheets and cash flow statements for the next three years.

Final Words

Having a good knowledge of key elements of a business plan helps you create a plan that can fulfill its purpose. All these elements have their own importance and these are looked for while applying for funding or any other proposal.

onEntrepreneur is the go-to source for entrepreneurs looking to get ahead. Our online magazine offers practical, actionable advice to help startups succeed across key areas like business strategy, marketing, technology, leadership, management and more. Sign up for our regularly updated newsletter to receive our latest articles and insights directly in your inbox.

Related Posts

Save my name, email, and website in this browser for the next time I comment.

Type above and press Enter to search. Press Esc to cancel.

The 5 Key Elements Of A Good Business Plan

22 January 2020

Although some Founders are sceptical about planning too far ahead for their businesses, preparing a solid business plan is necessary for many purposes.

As any founder knows, the only sure thing about running a growing company is change.

In fact, your business plan is perhaps the thing that will change most often throughout your entrepreneurial journey.

Although some Founders are sceptical about planning too far ahead for their businesses, preparing a solid business plan is necessary for many purposes, including, but not limited to:

• Raising finance through investment;
• Applying for a business loan;
• Budgeting for the long and short term;
• Gaining a deeper understanding of how your business works.

Perhaps even more important than preparing a business plan, is making sure that this is updated for each of the small and big changes that your company will go through as it grows and evolves.

Different companies require different types of business plan. Depending on your business model, your revenue structure and many other factors.

However, there are 5 elements of a business plan that are absolutely key to making sure that the reader understands how your company works and plans on growing.

Download our editable Business Plan Template

It includes a complete structure , detailed instructions on how to write each section and tips on how to tweak it for each specific use .

By submitting this form I understand and accept that Finerva will contact me and store my data according to the Privacy Policy & Terms.

1. Executive Summary

The Executive Summary represents the reader’s first impression of your business

The Executive Summary is the first section of your business plan, and also the last one you should write. It represents the reader’s first impression of your business . As a result, it will likely define their opinion as they continue reading the business plan.

A good Executive Summary includes key facts about your business such as:

• Business & product description;
• Current positioning & targeting;
• Financial outlook & requirements;
• Past and future achievements & goals.

However, the most important function that a great Executive Summary serves is communicating to the reader why they should read the rest of the business plan , and why you want them to.

2. Business Overview

After the Executive Summary, a business plan starts with a comprehensive explanation of what your business proposition is and how it relates to the market where your company operates.

In this section of the business plan, you should explain precisely:

• what your company does;
• what are its products or services;
• in which market it operates;
• who are its customers.

When describing your business, you should make sure to that the reader knows what kind of market environment your business operates in, but also how it can thrive in such an environment from a competitive point of view.

For some very niche or particularly innovative sectors, this may mean that you need to inform the readers about specific market dynamics .

In these cases, make sure that you clarify what is considered ‘the industry standard ‘ in your sector, the selling points that current players are competing on and how your business is positioned relative to them.

Make sure to include:

• Your mission statement;
• The philosophy, vision and goals of your company;
• Your industry and target audience;
• The structure of your business, detailing your customers, suppliers, partners and competitors;
• Your products and services and the problem they solve;
• Unique Selling Point(s).

If the company already has a well-defined product or service, this section can be divided into Company Description and Products & Services .

3. Sales & Marketing Strategy

This section of the business plan requires a deep understanding of your market space and how your business positions itself within its niche and competes with existing players .

Within your Sales & Marketing strategy, you should outline:

• A definition of your target market – include its size, existing and emerging trends and your projected market share;
• An assessment of your market – this should summarise how attractive your target market is to your company and why, Porter’s Five Forces or the more recent Six Forces Model are useful tools to define this;
• Threats & Opportunities – you can use a SWOT Analysis to present these;
• Product/Service Features – once you have thoroughly described your product/service, make sure to highlight its Unique Selling Points, as well as any complementary offerings and after-sale services;
• Target Consumers – whether you’re a B2B or B2C company, it’s a good idea to include an ideal customer profile to describe exactly what niche(s) you are going to target;
• Key Competitors – research and analyse any other players inside or outside your market whose offering might compete with you directly or indirectly;
• Positioning – explain in a short paragraph how your company differentiates from your competitors and how it presents itself to your target niche;
• Marketing Plan & Budget – outline the marketing and advertising tactics you will use to promote your business, giving an overview of your brand and of the communication elements that support it;
• Pricing – explain how your pricing strategy fits within the competition and how it relates to your positioning;

A very common mistake that should be avoided is writing that you have no competition. Instead, you should show your efforts in researching your competitors and assessing how they could threaten your business .

4. Operations & Management

This section gives you the opportunity to explain to the reader how your company does things differently .

The people and processes that are allow your business to operate on a daily basis are the key to your competitive advantage . In fact, they help you build a better product, deliver it more efficiently or at a lower costs. Your Operations & Management must be able to successfully realise what you ‘promised’ in the previous sections.

Here, you must demonstrate how much you know about your business, so don’t leave out any relevant detail. Be concise but thorough, focus on two main points:

• Production or Service Delivery;
• Quality Control;
• Credit policies;
• Legal environment;
• Organisational Structure – this is an overview of all the people involved in your business and their position in relation to each other. You should detail the experience of the existing team, as well as the roles that haven’t been filled yet. Include advisors and non-executive directors . Investors and banks will also look at this section to get an idea of salary costs. As these are normally a significant cost centre, don’t overestimate your staff needs.

5. Financial Plan

Your Financial Plan is possibly the most important element of your business plan . This is especially true if the business plan is aimed at investors or lenders.

This section includes projections, budgets and goals that are unique to each business. In particular, you should focus on explaining the assumptions on which you based your forecasts , more than on the forecasts themselves. Every good Financial Plan will include:

• 12-month Profit & Loss Projection – A month-by-month forecast of sales, operating costs, tax and profits for the following year. Sometimes three years.
• Cash Flow Statement & Forecast – This financial statement tracks the amount of cash that leaves or enters the business at any given time.
• Breakeven Analysis – This is a cornerstone of your business plan. Here you should show what level of projected sales allows the business to cover its costs.
• Capital Requirements – This point is fundamental as it shows investors what their money will be spent on. It should contain a summary of all the expenses for big purchases and day-to-day running costs.

The Financial Plan is usually followed by the Appendices. Here you should include detailed spreadsheets and calculations used to prepare the financial statements.

We help Founders write a solid business plan by supporting them with financial planning and forecasting .

Request a call to find out how we can help you.

The information available on this page is of a general nature and is not intended to provide specific advice to any individuals or entities. We work hard to ensure this information is accurate at the time of publishing, although there is no guarantee that such information is accurate at the time you read this. We recommend individuals and companies seek professional advice on their circumstances and matters.

Business Exit Planning

15 February 2023

Pre-exit planning accelerates the sale process, increases the likelihood of a successful business sale, and maximises the value received at closing.

White Paper : Exit, Leadership, Strategy, Tech and Valuation

Sign up for the Founder's Bulletin

Join our community of 4,000 + Founders, Entrepreneurs & Advisors. Refreshingly simple financial insights to help your business soar.

By submitting this form I give permission for Finerva to contact me. Privacy policy.

6 elements of a business development plan

Your business development strategy is key in determining the success of your organisation. Sustainable growth only comes with hard work and strategic foresight.

A business development plan helps you visualise your strategy and identify ways to optimise your go-to-market approach. Here are six elements to power your development plan :

1. High-level goals

Before you can achieve high growth, you need to know what it looks like. Every business has its own idea of what success looks like. Define your vision first, then work backwards to understand what you need to do to get there.

For example, if your organisation currently relies on a handful of high-paying customers to stay afloat, you may want to consider expanding your client portfolio to reduce your risk level.

Create a list of your top goals and rank them in terms of the benefits they'll provide for your organisation.

2. Market research

How well do you know your customers? To focus your business development strategy in a manner that encourages growth, you'll want to know as much as possible.

Develop buyer personas to better understand your customers' needs and challenges. In fact, 71% of companies that exceed their revenue goals have documented buyer personas. Be sure to include demographic and psychographic data as well as an explanation of the persona's motivations and frustrations.

3. Marketing strategies

Detailed buyer personas will make it easier to optimise your marketing efforts. When you understand why your customers want to work with you, you can develop content that addresses their needs.

Central to your marketing strategies are the channels you use. Most companies find it's best to use a mix of traditional and digital channels. Email, direct mail, social media and web content are all popular options. In 2019, 52% of marketers use three to four marketing channels, compared to 44% in 2015.

4. Data-driven feedback loop

Recent research shows that the majority of businesses (90%) fail to execute their development strategies successfully. One of the main reasons for this is lack of actionable data.

Analytics and progress reviews are crucial pieces of your plan that you can't afford to skip. Monthly and quarterly pulse cheques can help you spot problems before they derail your entire plan. In addition, you may find opportunities to accelerate your growth. Pay close attention to what your data is telling you and use it to adjust your course as necessary.

5. The sales funnel

To scale your efforts effectively, your organisation needs a consistent sales approach. A documented buyer's journey – also called the sales funnel – helps you do that.

A sales funnel documents the best ways to find, attract and engage qualified leads. At the top of the funnel, you may want to capture the attention of a broad range of people who are likely to be interested in your offerings. As potential customers move down through the funnel, you'll offer them more information and help them understand how your products and services can benefit them.

6. Resource analysis

With your development plan formed, you'll need to ensure you have the resources in place to execute it successfully. You may need to identify technology and vendors to help you achieve your goals.

Determining your business's financial needs early can prevent you from hitting roadblocks later on. Reach out to the trusted experts at Wilson Porter to learn more about how to move your business forward.

Please complete the form below to download Your Self-Managed Superannuation Fund Guide .

• First Name *
• Last Name *
• Comments This field is for validation purposes and should be left unchanged.

Please complete the form below to download The Do’s and Don’ts of Small Business Accounting eBook .