Critical Components Of A Sound Business Plan

"Every aspiring entrepreneur needs a thorough and well-written business plan. This makes all the difference in organizing and marketing your business, seeking funding, and measuring your success. However, developing a business plan can seem overwhelming regardless of your background. Fortunately, there are many templates available for business plans and you can choose the format that is tailored best for you and your business. Just make sure it has the following components."

"1. Executive SummaryEvery business should be able to be summarized in an elevator pitch, which should be a high-level introduction to your business and your reasons for starting it. Your executive summary should include your mission statement of your business's aims and values, the product or service you are selling, and your business's name and location. 2. GoalsYour business plans should include both short- and long-term goals for your business. A rule of thumb in distinguishing between the two is to set short-term goals for the next four to six months and long-term ones for the next one to three years."

"3. AudienceThe business plan will need to cover who you are selling your products or services to so defining the target audience is crucial. Take the time to determine if you are targeting the general market or a particular demographic based on age range, gender, or race, and whether it is local, regional or national. 4. MarketOnce you have determined your business and its audience, look at ways your particular business can improve upon existing models in your market and fill market gaps. You should also fully understand your competitors and how your product or service is different from what they offer."

A strong business plan provides a concise elevator-pitch executive summary that states the mission, product or service, and business name and location. The plan sets short-term goals for the next four to six months and long-term goals for one to three years. It defines the target audience by market scope and demographic details. It analyzes market opportunities, competitor differences, and how the business fills gaps. It outlines promotion and marketing tactics tailored to the audience, including low-cost social media options, to reach customers and support funding and growth objectives.

Read at Forbes