A business plan can be seen as a roadmap – it aids your guidance. Essentially, a well-written business plan can help: convince lenders, investors, and others to fund your business, determine if your business has a future and if it can make a profit, determine what type of audience it will appeal to, & predict if it will sell.
An executive summary is a crucial part of your business plan. It basically introduces and summarizes the main features the company holds. It provides an outline of the strategy in which you will use for your business. This is highly important because you have to appeal to the audience whom you want to involve in your company, and by doing so investors can see the potential behind your business without having to read the entire plan.
A few things an executive summary should include:
- mission statements
- a sketch of where you are at the moment, and where you want to see your business grow.
- highlights of your financial status
Marketing strategy is long term. The operational plan is short-term. This is a guiding plan which the business follows so it can reach all its goals and achieve more. In order for any business to be stable in the long run, the operation plan must be updated regularly in order to ensure the stability of the business. This mainly includes details about the people responsible for completing the required actions. It is taken through a day-to-day basis, including:
– transportation (if you are selling merchandise and goods)
– logistics of the business
– legal work (such as if a permit/license is required?)
A financial plan lays down numbers and tells you if your business is liable for investors to finance.
This is one of the most important components of a business plan. As Jennifer Spaziano (VP at Accion) “This section is crucial if you’re presenting your plan to potential lenders or investors, but it’s also important if you’re using it in-house as a roadmap to get started and continue to grow.”
The financial plan includes a sales forecast, cash flow statements, balance sheet, profit, and loss statements. This makes it easier for you to make smart financial decisions and stay on track to meet your goals.