What are the business plan basics I need to understand to start a successful business?

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Answered by: estopheles, An Expert in the Business Plan Basics Category
Having your own business is probably everyone’s dream; being the boss instead of just someone’s employee. But figuring out how to start is probably one of the hardest struggles among those who want to start their own business. Yes, it is difficult but it is not impossible.

There are a lot of ways to start planning your own business and knowing the business plan basics is definitely one of them. You need to come up with a well-thought out plan that will guarantee revenue to cover every single expense and a good return.

Start with these seven things:

1) Executive Summary

This is a summary of what you are trying to accomplish. This is where you need to let your readers know why your business plan is worth it for them to consider. It should include the main point of your business. It should be about you, your company, the products you are selling, your strategy and your financial plan. It should grab their attention.

This should be a page or two and it is also much better to write this after writing everything else so you already know how to convince your readers to invest in your business. This will also bring you a step closer to gaining their trust.

2) Company Summary

What is your company all about? Provide concise information about your company: its history, ownership, and legalities.

3) Products/Services

Do research on what is currently in demand. You want to be involved with a product or service that stands out from others.

You can also provide a simple description of why your product is more likely to be sold than the others. Try doing this by putting yourself in the customer's shoes and consider why you would choose the product or service being offered.

4) Market Analysis Summary

Don’t just focus on the target market but focus on your competitors as well.

You also need to discuss the type of customers, their needs and even their location. How can you deliver your products to them? Also, what is the market size and expected growth or changes?

5) Strategy

In this section, you can discuss your sales plan: how you can sell your products or services and how likely will customers buy them from you instead ot the other guy’s. This section must be well discussed since this sets your priorities for your business.

6) Management Summary

This should describe the members of your management team. You can provide a brief description on their experiences and expertise.

7) Financial Plan

You can show your sales’ forecast, expenses budget, cash flow, a brief description of your income projection and a break-even analysis. This is an essential part of your business plan especially if you are trying to gain investors or a bank loan.

Knowing the business plan basics will help you understand how to start a successful business and of course, you can also use it as a reference or a guide to check if you have accomplished what you have aimed for.

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