A good business plan should include the following:
- Initial Executive Summary – summarizing the detail of the business proposal including the business concept describing the goals, product, market advantage you have, along with the business name.
- Your Team and Complete Resumes – highlight the principal owners and key personnel and describe skills your team already posses and which areas are lacking.
- Detailed Product Description – explain the product details and the market it will serve while pointing out exactly what will be sold, to whom and why the business will hold a competitive advantage.
- Provide an Economic Environment Assessment – present a full assessment of the economic environment in which your business will become a part. You need to know who will be your competitors in your region, what makes your product unique, why your team is better than the competition, and outline all developments within the company that are essential to the success of the business.
- Provide a Market Analysis – this is an in-depth analysis of your target market that includes the market size and growth, market trends, and market segments.
- Provide a One Year Financial Requirement Statement – this will predict the financial requirement or cash-flow needed to start the business and to expand. It should detail how the capital will be used, and the equity, if any, that will be provided for funding
For larger businesses, a projected balance sheet should also be provided.
It’s recommended that a qualified accountant is involved in preparing these forecasts to avoid being overoptimistic because every figure used must be of reasonable value.