Essential Aspects of Writing a Business Plan

Essential Aspects of Writing a Business Plan

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Business plan is a document that presents your business idea to the investors. Since on today’s market even the best ideas can’t succeed without extensive funding, business plan writing is one of the most important tasks in entrepreneur’s career. It is such an important thing that many business owners hire professionals for business plan writing. 

We think that every entrepreneur can describe his/hers business idea in writing, and that’s why we assembled this list of essential segments, each business plan needs to contain.

Executive summary

This is a short summary of the whole business model. It usually contains one or two pages and it is used for introducing investors with your business idea. Most entrepreneurs write executive summary after they specified all the details in other segments of the plan.

Business description

This business plan segment should include company’s mission, goals and objectives. Entrepreneurs can freely list all elements, which in their opinion will add up to their company’s success. This segment is often seen as the backbone of your business plan, and investors use it a lot during their decision making process.

Product or services description

This part should contain descriptions of products or services, company is offering. Descriptions should be imaginative and vivid and should be written in the same way as you will write them for real clients.

Sales and marketing

You should give special attention to this part, because in most cases sales directly generate business growth. Same goes for marketing, you can have top-quality product, but you won’t make any use of it, if you don’t let people know.

Both sales and marketing strategies need to be presented through exact and scalable data, which should include: current state of the market, predicted marketing costs and things that put your business ahead of its competition in both of these segments.

Technical information

Here you should inform investors about your company’s assets, including manufacturing machines and equipment, office or production space, costs of maintenance, rent, etc.

Human resources

In this segment you don’t need to list all of your employees and write about each one individually. Concentrate on company’s management staff, and share their qualifications and previous work experience. For important members of the team you can also add a few short paragraphs that describe in which way they will help company’s development. Some business plans also require detailing company’s hierarchy and relevancy of each relationship within the collective.

Legal section

Business plan should state the form of the organization, entrepreneurs want to incorporate. They need to choose between proprietorships, partnerships, corporations and many other organizational structures depending on their company’s liability, taxes they need to pay and predicted growth. This section should also include all patents, copyrights and trademarks, company or entrepreneurs own. To write all this correctly and to avoid legal mistakes that can cause drastic consequences, Australian entrepreneurs can visit some Sydney business lawyer’s offices  and ask for legal advice, or they can try to find answers online, which is only advisable for entrepreneurs with knowledge in legislature.

Development

You can let your imagination loose in this segment. Investors perfectly understand entrepreneur’s enthusiasm, so be a huge optimist when it comes to your company development. Each prediction in this segment should be backed with data written in others more detailed and specific parts of the plan.

Financial summary

Financial summary is very boring part of business plan. In the beginning you should focus on previous investment funds you received, and any other financial dealings that brought your company to its current stage of development. After that you need to give your own financial predictions and plan the ways in which you will use investments that you might get.

Business plan’s importance lies in the fact that it is the only written form recognized by all kinds of investors and whether you like it or not, all of our business ideas depend on rich people and organizations that are ready to support them

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