Essential elements of a good business plan
If you decide to use business planning software (more on this in the next section), a model or create your own informal document, good business plans include the same basic information that covers every aspect of your business and its success:
Abstract: An overview of your business or “business idea”. Basically, who, what, where, when, why and how of your business. This is the section you may want to write at the end, and the most important summary why you think the business is going to be a success and what your business is about.
Company Description: This section should answer: What products / services do you sell? Who is behind? Who are your customers and what are the needs that are made with your products and / or services?
Organization and Management: Include in this section the structure of your business (sole proprietorship, limited liability company, etc.) and its background and years of experience. If you have employees, list them here with your titles or papers. For more information on business structures, see the IRS descriptions (most individuals working alone will be individual companies, but there are advantages to forming a limited liability company, LLC or other structures).
Products or services: a detailed description of what you sell, including price and specific advantages over your competitors. If you sell products, you must include your sources here and the amount of margin that is added. For services, include your hourly rate or project (do not know yet what to pay? Here are some tips).
Marketing and Sales: Growing your business, you will need a solid marketing strategy for the next three years at least. Plan investment in corporate identity design (eg, logo design, website development, business cards) such as advertising expenses in newspapers or lists of search engines and other ways to get there to his clients.
Market Research: Research your competitors – what they charge, how they position themselves, what their products are compared to yours is an important exercise. For an informal business plan, a simple Google search and online local competitors could do, but for a more thorough market research, you may want to turn to sites like vacuum cleaners to get more detailed information from the industry and the industry. More research can be done, the better (although there are many, just add in an attachment).
Financial Information: This is probably the most involved part of your plan. You will need to know exactly how much you need to get started and what money will be used to list all the expenses you can imagine for the next three years at least; How do you plan each year (financial projections); And set certain financial assumptions like your tax rate and how many days will give your customers time to pay their bills (for example, at 30 days). The models and tools of the business plan in the next section will help you create these plans but you may have to look also for standard assumptions for your industry or sampling frequency used by similar companies. Joining an industry association such as the graphic artists’ Guild could give you access to financial planning tools and industry standard rates.
Applying For Financing: If you are looking for a loan, create a finance application section where you will describe the amount you will need, what money you will be earmarking for, the terms you want have been applied, could have an impact on your loan in The future (eg, planning to get a new partner in the future).