Key elements of a business plan

Key elements of a business plan

Whether you’re writing a business plan to acquire funds, expand your company, or simply to see if your idea will work, every business plan should have six key elements.

1. Executive summary

The executive summary provides a high-level overview of your company and its goals. It should be the opening page of your plan and should be no more than one or two pages long. However, most people write it last.

  1. Opportunity

What are you truly selling, and how are you fixing a problem (or “need”) for your market, according to the opportunity section? What is your target market and who are your competitors?

  1. Execution

Here, you’ll answer the question of how you’ll transform your opportunity into a business. This part will go over your marketing and sales strategy, as well as your success milestones and KPIs.

  1. Company and management summary

Investors are often on the lookout for outstanding teams as well as amazing concepts. Describe your current staff and who you need to employ in the company and management chapter. If you’re already up and running, you’ll also give a concise explanation of your legal structure, location, and history. 

5. Financial plan

Your idea could be great and be a good prospect, but without a financial projection, your business plan is incomplete. A sales forecast, cash flow statement, income statement (also known as profit and loss), and balance sheet are all essential. 

6. Appendix

Use the appendix if you want more room for product photographs or further information. An appendix to your business plan isn’t needed by any means, but it’s a good place to include any charts, tables, definitions, legal notes, or other crucial material that seemed too extensive or out of place elsewhere in your business plan. If you have a patent or a patent application pending, or product drawings, this is the place to put them.