Categories: Startup

Top 7 Components to do Before You Write a Business Plan

A business proposal is written to persuade your prospective client. It is meant to answer all their questions on why you are the best and should be chosen. In order for your business proposal to answer your client’s questions, you must know your client’s questions and expectations beforehand. Hence the first step to writing an irresistible business proposal is to know all your client’s expectations. Writing a business plan for investors isn’t as difficult as you think.

And no, you don’t have to hire a professional for that—you can handle it yourself. Here’s how to write a business plan that will impress investors and prompt them to fund your business.

Top 7 Components to do Before You Write a Business Plan

1. A Summary of Business Plan

This should be brief, no more than two to five pages. It includes your contact details (such as name, address, and telephone number). The purpose for requesting the investment and the amount required. Include a brief description of your company as well as your proposed products or services, required facilities and equipment, and so on. 

Your summary should also include a brief description of your target market, competition, sales strategies, management team, and their expertise and background. A description of how you will use the funds, and a short paragraph about the company’s goals.

The summary is a condensed version of the more detailed proposal. It is intended to give a reader a quick overview and encourage a thorough overview of the proposal.

2. Company overview

This section will include the formal name of the company, its legal structure, ownership details, the industry, and the products and services to be offered. Describe your role in the business and those others who might also be involved. Also, you should give details of your own investment in the business.

3. Products and services

Provide detailed information about the products or services you intend to offer. Include inventories in stock to be purchased, the cost of the inventories, estimated production costs, selling prices, and sales forecast for the next three years.

4. Use of proceeds

This section describes how you will use the funds you get. Give full details of each of your expenses. Include your cash flow projections to demonstrate how the investor will get back their money.

5. Marketing

This section will detail your marketing, advertising, and sales plans as well as your unique selling proposition. Include any marketing research and analysis data that will support your sales projections. Be honest and reasonable in your forecasts and forger about blowing figures out of realistic limits.

7. Management

Discuss the company’s management, individual responsibilities, employment histories, qualifications, skills, and experience. Describe how each member will contribute to the growth of the business. Describe any additions in management that you’re planning for the near future. Don’t forget to include details of the salaries for at least three years plus any other forms of compensation intended.

Other components that should go into your business plan include the following:

  • Technology
  • Employees
  • Facility and equipment
  • Business financials

Most importantly, keep your business plan simple and free of jargon. Take your time to eliminate all grammatical and typographical errors. And make your proposal very presentable.

Sameer
Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there. Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there.

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