A business plan provides guidance for your business, and lenders may request to see one as part of their application process. To help you write one, this article summarizes the parts of an effective plan. Note that the parts you include and the order in which you place them may vary.
The Executive Summary
The executive summary outlines your business plan. Key points in this section include your company’s background as well as a brief overview of your company’s mission and management structure.
The Company Description
The company description provides more details about the business. Pertinent details here include the reason the business was formed, when it was formed, and its business model and overall strategy.
The Market Analysis
The market analysis section is made up of research on your competition and target customers. The Small Business Administration recommends highlighting how your business stands apart from competitors in this section.
The outline of the organization goes into how the company is structured—that is, its management setup. It also provides details on what type of legal entity the business operates as.
Product or Service Description
This section should describe what your company offers or plans to offer. You can also describe research your company has performed on its products and/or services.
The marketing section of the plan describes your company’s strategy for attracting and keeping customers.
Funding Request and Financial Projections
The funding request and financial projections are often included as two separate sections, but they work toward the same goal: showing a lender that your business is creditworthy. The funding request summarizes the amount of funding your business is looking for and what it will use that funding for during the upcoming five years. The financial projections include information on your business’s cash flow, expenditures, and forecasted income.
The appendix is an optional but helpful section. This is where you can include supplemental material, such as credit reports and lease copies.
Monstera Lending Group’s other blog posts cover many additional business topics, so be sure to check them out!