Why make a Business Plan?
A business plan will describe how you will transform your current state from your SWOT analysis to achieve your SMART goals. While developing a business plan, it’s key to have management support along the way while you’re developing the plan. They should be on board with the activities as they’re ultimately going to be a key stakeholder in the decision making process to decide if your plan will be carried out. They can also provide you with emotional, managerial, and financial support in the developmental stages of your plan.
Components of a Business Plan
- Executive Summary
- Company Description
- Depiction of New Service / Market Analysis
- Marketing Plan
- Financial Projections
- The executive summary is generally a one page summary of the highlights of your business plan. This generally should be the last thing that you write. It should be a clear narrative on who you are, what you’re trying to do, how to get there, and what your financial goals are.
- Company description should include some of the overview of how you’re currently structured. This could be current services that you’re offering, if you’re for-profit or non-profit, the current service area, or other general information that outlines who you are today.
- This section deals with describing what additional services you’re planning to offer and why it’s a good fit for the market. This could relate to why a new technology is a good fit for the market and the future of what current data is showing to why it will be successful. It should also include who you are targeting.
- The marketing plan goes into the depth of how you will attract and retain customers. It should include the 4P’s of marketing – product, price, place, and promotion.
- Financial projections would go into why you think this will be profitable. It should go into detail providing your current financial history including income statements, balance sheets, and cash flow statements. Generally this should be provided for a 3 to 5 year historical and additionally projections for 3 to 5 years.