Writing a Business Plan
Developing a business plan is a “must-do”. A business plan serves as a roadmap for decision-making and helps focus on the core mission and goals of your business. It’s a living document - something that should be reviewed often, updated as the business environment changes, and transformed as the business grows. If you’re a first-time entrepreneur, chances are you might not have enough capital to start a business on your own. This means you will have to rely on financial help from lenders or investors to get things off the ground. A business plan is a way to convince potential backers that you’ve thought things through. Even if you’re confident that you have enough capital to get started on your own, you still need a business plan. The process of writing down your plans in detail will help you find hidden business flaws and make you think carefully about each phase of your business. There are several agencies that we work with that can help you write a strong business plan. These business support services include the Small Business Development Center at SUNY Geneseo and SCORE of Greater Rochester.
As a starting point, consider the following sections as essential details to consider when first drafting your business plan. Since a business plan can include large amounts of information, it is important to break things down into smaller, more manageable sections. The order of the sections and their titles may vary, but in some way, the following should be included:
Executive Summary
One to two pages briefly explaining your business and what is included in the rest of the business plan. Highlight the most important parts of your plan because it is your first opportunity to grab a potential investor’s attention.
Market Analysis
Your chance to show investors that you have researched the market. Illustrate your knowledge of your competition and customer base.
Organization & Management
An outline of your business’s organizational structure. Include an organizational chart, details about the ownership of the company, and profiles of your management team.
Service or Product Line
A description of the product or services you will offer your customers. Emphasize the benefits of your product and the customer needs it meets.
Business Description
A high-level review of your business. Describe the nature of your business, your products or services, and your customers. Explain how your product meets the needs of your customers and any competitive advantages you have.
Marketing & Sales
A strategy for selling your products and services. Explain how you will advertise your products and how you plan to get them to market for your customers to buy.
Financial Projections
Include all necessary financial documents in this section for example your balance sheet, income statement, cash flow statement, etc.
Appendix
An optional section where you can include any additional information you think is necessary or supplemental.
Note: Although the executive summary comes first in the plan, it should actually be written last.
You won’t know what the summary of the plan is until the rest of the plan is created.
