Creating a business plan is an important step for any entrepreneur. It is a document that outlines the goals and objectives of the business, as well as the strategies and tactics that will be used to achieve them. The Small Business Administration (SBA) recommends that a traditional business plan should include eight key areas. The first area is an overview of the company.
This should include a brief description of what the company does and why it will be successful. It should also include information about the legal structure of the company, such as whether it is an LLC (limited liability company), a partnership, a corporation, or a sole proprietorship. Additionally, an organization chart should be included to show who is responsible for each area of the business. The second area is a description of the products or services offered by the company.
This should include details about how they are produced, how they are marketed, and how they are sold. It should also include any patents or other legal documentation related to the products or services. The third area is a market analysis. This should include information about the target market, such as demographics and buying habits.
It should also include information about competitors and their products or services. The fourth area is an operational plan. This should include information about how the business will be managed, such as who will be responsible for each area of operations and how they will be managed. It should also include information about any suppliers or vendors that will be used by the business.
The fifth area is a financial plan. This should include information about any funding that will be needed to start or grow the business, as well as projections for income and expenses over the next five years. It should also include actual financial statements from the past three to five years if the business is already established. The sixth area is a management team description. This should include brief biographies of each team member and how their skills and experience will contribute to the success of the business.
It can also include resumes, photos, or illustrations of their products. The seventh area is an implementation plan. This should include information about how the business plan will be implemented, such as timelines and milestones for each goal or objective. It should also include information about any resources that will be needed to implement the plan. The eighth area is an evaluation plan. This should include information about how progress towards goals and objectives will be measured, as well as any strategies that will be used to adjust plans if needed. Creating a traditional business plan can be time-consuming but it is an important step for any entrepreneur who wants to start or grow their business.
Following these eight areas recommended by the SBA can help ensure that all relevant information is included in the plan.
