A business plan in a nutshell is a document that describes a business venture and gauges its potential to make money. Typically, the plan does this with an end goal of obtaining capital, either in the form of private investment (venture capital or angel investment) or a loan or line of credit from a bank backed by the Small Business Administration. But what does the business plan need to include in order to be considered for funding? While different financial backers will apply different criteria, the main sections that are provided include the following:
• Executive summary (project synopsis)
• Service description (what do you do?)
• Market analysis (who buys it?)
• Marketing (how will you advertise?)
• Management (your team)
• Financials (3 year forecast)
The financial projections should show 5 years if you need outside investment, though a bank plan will only require a 3 year model. Make sure to use assumptions (and identify them) and show how you will spread around the initial capital. Commonly included tables and graphs are sales forecast, break-even point, profit and loss, cash flow, balance sheet, and sensitivity analysis. It is also important to show the first year in a monthly detail. A full business plan might also require an investor proposition, exit strategy, or a past performance and company history section if you already have sales under your belt. Consult with SCORE, the SBA, or call MasterPlans to learn what your business plan ought to feature. Our team can work with your ideas to make an exceptional plan in as little as 7-10 days. Call 877-453-2011 today.
