BUSINESS F or more than 30 years, I’ve had the unique privilege of selling a business plan software template that has helped millions of entrepreneurs start and grow their businesses, as well as raise capital. Our goal has always been to ensure our software assists our subscribers in writing a business plan that powerfully communicates the right information to your intended audience. So, what information must always be incorporated in any business plan? Today, we take a look at the 10 most important things your business plan must have:
1) Introduce the problem / BIG idea → Mission, Goals, and Actions. Why are you in business? Once you have set the big picture by clearly identifying a mission for your company, you must then align your goals and actions to achieve that mission. Is your plan clear about the connection between these elements? If not, it may signal that you are not heading in the direction in which you really want to go. (See also, my blog post “Are you a Mercenary or a Missionary?”)
2) Define Your Customers. Customers should be divided into market segments. This is im-
portant since each segment will act differently and put unique demands upon your organization. You need to identify for each segment – Who is buying? What are they buying? Why are they buying? Most importantly, how many are buying? This determines the
you intend to take to capitalize upon these opportunities.
4) Acknowledge Risks and Show You’re Prepared for Threats. Your business plan should point out possible threats that loom on the horizon (i.e. a market slowdown, new regulations, increasing competition, etc.) and offer ways to prepare for them or even turn them into a real business opportunity.
5) Direct and Indirect Competitors. Your business plan should cover what you know about your competitors today and, more importantly, how you intend to keep track
of them on an ongoing basis. Moreover, your plan should address how you intend to use what you learn to choose competitive battles you can win.
potential size of your company. Your plan should also explain how
6) Understanding of Strengths and Weakness.
your company intends to serve each type of customer better than
Your business plan should list your company’s capabilities and re-
anyone else.
sources – from management skills to research expertise to opera-
3) Point to Major Opportunities.
tional advantages to marketing savvy to distribution strength to
To demonstrate how your company will expand and prosper, your business plan must clearly point out major opportunities that will drive growth (i.e. unique products/services, new technologies, gaps in the market, distribution advantages, etc.) and outline the actions
your loyal customers. But the plan should also go on to describe where you are weak and need improvement. Every company has weaknesses. Investors know that, so don’t ignore it in your business plan.
