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What to Include in a Business Plan
- An executive summary. Your executive summary should be no longer than two pages. Consider it one of your most important fund-raising tools -- investors usually make their decisions about whether to investigate a company further based solely on the executive summary. It should be a well written, quantitative summary of your business plan. Specify how much money you want to raise and by when.
- The problem your business solves. Describe the pain that your business will alleviate.
- Your solution. Describe both current solutions and your own. Focus on why yours is better. Is your solution a quantum-leap forward rather than a marginal improvement? If so, explain how.
- The market opportunity. Show that its big and growing. Be specific and quantitative and site your sources.
- How you will market your product, service, or site. Show that you can do this without spending a boatload of money.
- The competitive landscape. Describe your competition and your unfair competitive advantage. If you have patents, a technical innovation, or something that uniquely sets your business apart, spell it out.
- Customer testimonials. Explain who your customers are and how you will acquire them.
- Short bios of the founding team, board members, and advisors. Show why you and your team are the best people to start the business. If you have a lawyer and accountant, mention it.
- A five-year financial forecast. If you want to raise venture capital, youll need to show investors that your business has the potential to return a 10-fold return in three to five years. If your company isnt high-growth, venture capital isnt for you. Include a monthly forecast for the first year and a yearly forecast for next four years.
- The exit strategy for investors. Include a brief description of the exit strategy for investors. Do you plan to take the company public? Do you plan to sell it? Do you plan to merge it?
- Your funding requirements. Say how much money you need, when you need it, and how you will use it. Say which milestones the money will enable you to achieve.
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9 Reasons to Write a Business Plan | What to Include in a Business Plan
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