Like
any newspaper article, book or story, a business plan needs an
introduction. You are informing the reader about basic information
regarding the company, what you offer, the intention of the business
plan and the capital requirements, if any.
Overview: You begin the process
by explaining the reason for the business plan. It could be
start-up,
reorganization, downsizing or expansion. Provide a brief description of
your company, including name, location, web site (if you have one),
contact information, company ownership and products and services
offered.
Products
& Services Offered: Be more
explanatory about the nature of the products and services
offered by
your company. Make note of what it is about your products and services
that make them stand out above and beyond the competition. Don't be
detailed. The details are addressed in a latter section of the business
plan.
Mission,
Goals and Objectives: The
mission statement should express what you offer and what will be the
benefit to the customer. This should not exceed two sentences. The Goals
are generalized statements regarding the direction the company takes
regarding products, services, customer service and the like. For
example, "we will attract customers for the extraordinary new
features our product offers plus exemplary
support and follow-up after the sale". Objectives are quantified
statements addressing monetary intentions related to profitability,
market share, target markets, cash flow, sales volume and other
measurable items regarding markets, operations and finances. They should
include timelines for fulfillment.
For example, the company will reach profitability by a specific date
with average annual sales reaching $230,000 by the 16th month of
operations.
Funding
Requirements/Proposal: Complete
the executive summary with a summary definition, Sources & Uses of
Funds, of
the capital investment required to fulfill the goals and objectives of
the business plan. If outside investment is sought, stipulate the terms
and conditions under which the investment capital is sought (commercial
loans and/or venture capital). If you are approaching venture
capitalists then go to our Downloads
page and download
Term
Sheet Parts 1 and 2, written by the staff of Brobeck
Hale & Dorr.It represents an excellent
description of the document used when negotiating with VC's.
Note:Write the
Executive Summary at the outset. Do not return to this for review and
editing until your plan is completed. Otherwise, you will find yourself
coming back to revise the summary over and over again. In the end, make
it a rousing introduction to something exciting.
