Everything You Need in Your 2021 Business Plan
Starting a new business is an exciting and life-altering endeavor. Finding funding for your startup requires lots of leg work. Possibly the most complicated piece of that leg work is creating a 12 to 15-page document known as your business plan. This plan will have everything your lender needs to know about your business. It’s a large document because it has so many parts. Here are the essential pieces you’ll need to include in your plan.
1. The Introduction
For a professional documenting, you should include a cover page that includes the name of your business, as well as your logo and contact information. This will be followed by a table of contents that allows the viewer to quickly locate information.
You’ll also need to include an executive summary. This is your mission statement and a general outline of information regarding how your business operates. In your information, you want to present your business as an entity that is destined for success.
Follow this is up with a description of how receiving funding allows your business to grow. Be general on how you spend the funds because you’ll be providing further details deeper into the plan.
2. Market Information
Your lender will want to see statistics and the formulas you used to come up with those statistics. Who is your competition and why are you sure there’s a market need for your business? How are you going to provide the same products as your competitor and remain competitive, or what is your competitive advantage? These are all questions your lender will need to see answers to, so do your homework thoroughly.
3. Business Operations
In the middle of your business plan, you’ll get more in-depth about how your business is organized, the types of goods and services you offer, and how you plan to market your goods and services.
You’ll want to provide background information and duties of your essential employees, such as managers and supervisors. What is their function in the business? Provide your own experience as well as that of any other owners, as well as any board of directors.
More importantly, how are your marketing and sales plan structure, and why are you sure it will be a success? You want to have a strategy for how you build loyalty and why you stand out.
Of course, you have to discuss financial projections, because this is what leads you to the magic number of how much you are asking t borrow. Discuss previous, current, and projected income. Be optimistic, but back it with data.
A good business plan requires lots of research and homework. A solid business plan not only allows your business to gain necessary funding, but it can also set the pace for real success.