A business plan is a carefully constructed guide for the person starting a business. The purpose of a well-prepared business plan is to show how practical and attainable the entrepreneur’s goals are. It also serves as a concise document that potential investors can examine to see if they would like to invest or assist in financing a new venture. When constructing a business plan, the business person should strive to keep it easy to read, uncluttered, and complete. A business plan should include the following 14 components:
1. Cover Sheet
2. Table of Contents
3. Executive Summary
4. Company Plan Information
5. Environmental and Industry Analysis
6. Products or Services
7. Marketing Research and Evaluation
8. Manufacturing / Operational Plan
9. Management Team
11. Critical Risks & Assumptions
12. Benefits to the Community
13. Exit strategy
14. Financial Documents
15. Appendix (any relevant data that supports your business idea)
The business plan should answer four questions:
1. What exactly is the nature and mission of the new venture?
2. Why is this new enterprise a good idea?
3. What are the business person’s goals?
4. How much will the new venture cost?
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