The Most Important Parts of a Business Plan

 1. Executive summary

The executive summary is the first and one of the most critical parts of a business plan. This summary provides an overview of the business plan as a whole and highlights what the business plan will cover. It's often best to write the executive summary last so that you have a complete understanding of your plan and can effectively summarize it.

Your executive summary includes your organization's mission statement and the products and services you plan to offer or currently offer. You may also want to include why you are starting the company if the business plan is for a new organization.

2. Business description

The next part of a business plan is the business description. This component provides a comprehensive description of your business and its goals, products, services and target customer base. Include details regarding the industry your company plans to serve along with any trends and major competitors within the industry. Add you and your team's experience in the industry and what distinguishes your company from the competition in your business description.

3. Market analysis and strategy

The purpose of the market analysis and strategy component of a business plan is to research and identify a company's primary target audience and where to find this audience. Factors to cover in this section include:

• The geographic locations of your target markets
• The primary pain points experienced by your target customers
• The most prominent needs of your target market and how your products or services can meet these needs
• The demographics of your target audience
• Where your target market spends most of their time, such as particular social media platforms and physical locations

The goal of this section is to clearly define your target audience so that you can make strategic estimations about how your product or service might perform with this audience.

4. Marketing and sales plan

This part of your business plan covers the specifics of how you plan to market and sell your products and services. This section includes:

• Your anticipated marketing and promotion strategies
• Pricing plans for your company's products and services
• Your strategies for making sales
• Reasons for your target audience to purchase from your company versus your competition
• Your organization's unique selling proposal
• How you plan to get your products and services in front of your target audience

5. Management and organization description

This section of your business plan explores the details of your business's management and organization strategy. Introduce your company leaders and their qualifications and responsibilities within your business. You can also include human resources requirements and the legal structure of your company.

6. Products and services description

Use this section to further expand on the details of the products and services your company offers that you covered in the executive summary. Include all relevant information about your products and services. This includes how you plan to manufacture them, how long they can last, what needs they may meet and how much you project it might cost to create them.

7. Competitive analysis

Add a detailed competitive analysis that clearly outlines a comparison of your organization to your competitors. Outline your competitors' weaknesses and strengths and how you expect your company might compare to these. Include any advantages or distinctions your competition has in the marketplace. In addition, explore what makes your business different from other companies in the industry, along with any potential issues you may face when entering the marketplace, if applicable.

8. Operating plan

This part of your business plan describes how you plan to operate your company. Include information regarding how and where your company plans to operate, such as shipping logistics or patents for intellectual property. The operating plan also details operations related to personnel, like how many employees you hope to hire in various departments.

9. Financial projection and needs

The financial section of your business plan explains how you anticipate bringing in revenue. If you need funding for your business, this section also describes the sources and amounts for that funding. Include your financial statements, an analysis of these statements and a cash flow projection.

10. Exhibits and appendices

The last section of your business plan provides any extra information to further support the details outlined in your plan. You can also include exhibits and appendices to support the viability of your business plan and give investors a clear understanding of the research that backs your plan. Common information to put in this section includes:

• Resumes of company management and other stakeholders
• Marketing research
• Permits
• Proposed or current marketing materials
• Relevant legal documentation
• Pictures of your product
• Financial documents