Key Elements of a Business Plan: Step-by-Step Guide
Key Elements of a Business Plan 💡💵📈🗒✏️
Executive Summary 📌
The executive summary appears on the title page and serves as the summary of your business plan. It should convey the main idea you want to communicate to the reader and show that the owner’s goals are aligned with the core of the plan.
Keep every point short and to the point. If possible, fit the summary on half a page. It can be longer depending on the project's complexity, but it should not exceed one page. This section should provide a brief overview of your business plan. Remember: most decision-makers read only the executive summary and the financial requirements.
Main Content of the Business Plan 📌
Below are the essential sections your plan should include. Each item should be concise and focused.
Business Concept ✅
Describe the business and the product, and explain how they fit into the market. State what will be sold, who the customers are, and why your offering will remain competitive.
Financial Highlights ✅
Present the most important financial points, including sales, profits, cash flow, and return on investment.
Funding Requirements ✅
Clearly explain the capital needed to start and grow the business and how those funds will be used. If a loan will be secured by collateral, identify the source of that collateral.
Current Business Position ✅
Provide information about the company’s status: when it was founded, its legal form, major owners, and key team members.
Key Achievements ✅
Describe any milestones or achievements relevant to the business’s success. This may include patents, prototypes, key contracts, or results from pilot marketing tests.
Important Writing Advice ❗️
When writing your stated goals, don’t use too many words. No one will read aims that fill eight pages — that will signal that the business, regardless of merits, is not worth investing in. Lengthy, vague goals suggest the owners are not decisive and may not know what they want.
Write the business plan so the reader can easily understand your needs and opportunities.