Wondering what the components of a business plan are? In essence, the business plan needs to make a case for the market opportunity of a service or product, and show the potential success it could have financially. That's the basis of the plan. There are other elements—like your management team, your marketing campaigns, etc.—but at its core, the document is intended to describe an opportunity and to attempt to prove that it could be profitable. The better tied your financials are to the market analysis, the more airtight the business plan will be. The sections commonly included in a business plan are as follows:
1 -- Executive Summary
2 -- Product & Service Description
3 -- Market Analysis
4 -- Marketing & Implementation Strategy
5 -- Management Team
6 -- Exit Strategy
7 -- Financial Projections (3-year or 5-year)
The length of the financial pro forma—3-year or 5-year—hinges on the sort of funding you need. If you have to reach out to investors, institutional or otherwise, you will need a five-year model. If you will be taking your business plan to a bank, only a 3-year financial model will be required. The components most essential to your business plan are the Executive Summary (every plan needs one), the market analysis (an essential part), and the financial projection. You also want to focus on the implementation strategy since how you will market yourself is most likely a critical differentiator between your company and existing competitors. If you need help with any of these components, call MasterPlans at 877-453-2011. We have a team of experts to help you.
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