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A business plan is ???? ?????? ???????? ??????an important document for entrepreneurs of all stripes – whether you’re just starting out or have been in business for a longer period of time. Your business plan tells lenders and investors who you are, what your company does, and where you stand financially. It also outlines goals and objectives for your business, with a clearly detailed path to achieving them. 

What goes in a business plan? 

Your business plan is an important document for lenders and investors, as it tells them who you are, how you do business, and what your business finances look like. It also helps them to more thoroughly gauge whether a business is a good risk or opportunity. A business plan can also be useful internally as a way to align your team to shared goals.

There isn’t a single standard format or template when it comes to putting together a business plan, but most generally cover four key areas. While the information in your business plan might be arranged in a different order or format, the basic details are usually the same. They include:

1. Company Profile

This section of your business plan should contain information about your company or new business idea. You’ll want to include information about your company (such as location, etc.) and a detailed description of your product or service. This is also where you’ll highlight your value proposition, or what makes your business stand out from the competition. You should also include a description of the business ownership and management team, and any key employees. Additionally, you should include information about: 

• Company history, mission statement, vision statement, and company values

• Legal structure and issues, plus any regulatory and insurance issues

• Business goals including detailed project information if you’re looking for funding for a specific project

• Market research for your customers, industry, competition, and trends 

• An executive summary

2. Sales and Marketing

In this section of your business plan, you’ll want to include information on how you plan to generate sales. This includes details related to your pricing strategy, in addition to sales forecast assumptions and rationale.

3. Operations

Here you'll include information about your company’s location and assets (if any). This is a good place to go over your production process (if applicable), as well as details of any supplier agreements. Include any risks to your business and how you plan to mitigate them. Finally, include information on HR and the organizational structure of your business.

4. Financials

This section is where you’ll include your cash flow statement, usually as a spreadsheet. Include any financial statements, and if you’re a new business, don’t forget a list of startup costs.  

What is an executive summary?  

An executive summary offers a brief, high-level summary of your business plan. It makes it easy for potential lenders or investors to get a glimpse into your business in a short period of time. It’s often helpful to write your executive summary last, once you have all the information you want to include detailed within your business plan. 

What makes a good business plan? 

What makes a good business plan is really a matter of personal opinion, as different people will be looking for different information in your business plan, depending on the context of your interaction. That said, there are some key elements that go into every great business plan. 

Make it detailed

Your business plan should provide plenty of nitty-gritty details, from the steps you’ll take to achieve a goal to the specifics of your financials. Including plenty of details shows that you have thought through your business plan, and have the research to back up your claims. It also makes it easy for potential investors or lenders to run your numbers and verify any information. 

Keep it realistic

It can be easy to be overly ambitious with your business plan, but try to remember that you should be able to justify any projections or assumptions in your plan. 

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Be truthful

Tempting though it might be to massage the numbers to make your business appear in better straits, this could backfire in more ways than one. Putting together a business plan that’s transparent is one of the best ways for entrepreneurs to gain the trust of bankers and investors.

How long should a business plan be? 

How long your business plan should be is unique to each entrepreneur, and quality is more important than quantity. Some people can say everything in a few pages using bullet points and charts to outline all relevant details. Other entrepreneurs will take much longer to detail all relevant information. Just focus on including as much relevant information as possible that applies to your specific business.  

So you've written a business plan — now what?

Once you’ve written your business plan you might be wondering about next steps. Well, making an appointment with your business bank to secure funding is one option. You’ll present your plan with your application for any financing. The bank will then use the information within your business plan to determine whether or not lending to you would be worthwhile. 

Another course of action is to use your business plan to approach investors or other external funding sources for your business. Pitch competitions, 1:1 meetings, and even applying for small business grants will all require a solid business plan for you to make your case that your idea is worth investing in. 

Having a business plan in place will help investors and lenders feel confident with their investment in your business. Regular updates to your business plan will ensure you’re presenting the most accurate information and keep you aligned with your mission.