Administration, the Internal Revenue Service, the Census Bureau, and state departments of economic development.
The structure of a business plan
The most common business plan structure opens with short, general summaries (such as the executive summary and the business description) and then proceeds to more in-depth explanations in the body of the plan. That’s where you’ll provide thoughtful descriptions of your business’s fundamental elements and concerns. The attachments at the end include the most detailed information—financial data, management résumés, and so forth.
Writing a business plan is a big undertaking that requires time, dedication, and discipline. Rather than tackling it all at once, go section by section. Dividing the task into manageable chunks will help you better plan your time. Throughout the process, seek input from others. Talk over your idea with mentors, business partners, and colleagues. Ask them to look for gaps in your plan or potential red flags. Then make adjustments as you go.
Most business plans contain the following components, which we’ll cover in more detail throughout the book:
• Cover page: This ought to include the name of your business or project, as well as your name and contact information.
• Table of contents: An at-a-glance view of which topics will be covered. Use straightforward language to allow readers to easily skim or flip through to find what they’re looking for.
• Executive summary: A brief and formal explanation of what your company is, where you want it to go, and why it will be successful.
• Business description: A high-level overview of your proposed venture.
• Industry background: Historical data as well as current information about the shape, size, trends, and key features of the industry.
• Competitive analysis: A breakdown of current and prospective rivals.
• Market analysis: Your assessment of your target customers and their wants, needs, and demographics.
• Management summary: An introduction to your team as well as a description of how they will work together to form an effective and successful unit.
• Operations plan: The flow of the business’s daily activities and the strategies that will support them.
• Marketing plan: Your detailed strategy for how you intend to sell your product or service.
• Financial plan: A synopsis of the current status and future projections of the company’s financial performance.
• Attachments and milestones: Additional documents that supply more detailed information about elements of the plan.
Of course, not all business plans follow this model precisely. As you’ll see in the next chapter, your plan may combine some of these sections, add new ones, and eliminate others, based on your audience and its needs.
Describing the Opportunity
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