A business plan is a 15 to 25-page document that describes what your business is all about and provides a plan for the future. Small business lenders require a business plan before approving loans, so don’t hesitate to start one if you haven’t already. It should detail your plans for the next three to five years of operating your business and include several key sections.
Sections to Include in the Typical Business Plan
According to the Small Business Administration (SBA), a business plan should include the following sections at a minimum:
- Executive summary: This should be no more than a few paragraphs and sum up what the reader will find in the business plan.
- Company description: You will want to include a detailed description of the products or services your company makes along with the name and title of its key decision-makers.
- Objective statement: This is a chance to describe why you have chosen this line of business and what you think you can contribute to the marketplace.
- Products and services: Here is the place to provide a detailed description of what you plan to sell. It should include several high-resolution photographs.
- Marketing and sales plan: You need to demonstrate that you have studied the market and competition in-depth. Lenders and investors will also look for you to justify why a need for your products and services exist and the methods you intend to use to sell them.
- Business financial analysis: If you have the information available, include information such as profit and loss statements, a cash flow statement, and a balance sheet in this section. Owners of startups may not have a lot to include here but should add whatever financial information they do have.
- Financial projections: The last section should include realistic financial projections from the present time to five years in the future along with how your company intends to earn these profits.
- Appendix: Consider this a wrap-up that lists everything you presented in the previous sections.
Creating a business plan can be a lot of work but Purevue Capital can help. Please contact us for a consultation today.