Whether you’re planning to open a shop that makes the best coffee around or you want to sell eco-friendly office supplies, you’ll need to explain why your business is necessary and how it’ll differ from its competitors. It provides investors, lenders and potential partners with an understanding of your company’s structure and its goals.
If you’re trying to create one, check out 10 key components of a business plan.
Whoever’s reading this portion of your business plan should know exactly what you’re planning to create and sell, how long your products are supposed to last and how they’ll meet an existing need. If you know how much it’ll cost to make your products and how much money you’re hoping to bring in, those are great details to add.
You’ll need to list anything related to patents and copyright concerns as well.
While my business coaching company, Maui Mastermind, primarily focuses on helping existing businesses in the $1-25 million sales per year range successfully and increase owner independence, I do get asked about the best way to structure a startup's business plan.
Now to be clear, this outline is designed to help a startup think through the key questions to help them launch successfully.
A good business plan will present a clear comparison of your business to your direct and indirect competitors.
You’ll need to show that you know their strengths and weaknesses and you know how your business will stack up.
Your company description should also discuss how your business will stand out from others in the industry and how the products and services you’re providing will be helpful to your target audience.
Ideally, your market analysis will show that you know the ins and outs of the industry and the specific market you’re planning to enter.