Are you ready to launch a new business? Or do you have a vision for taking your business to the next level? Writing up a formal business plan can help you outline key elements of your business and get on track for success.
The process of writing a business plan can help define how to structure and run your business. It can uncover opportunities for growth and identify gaps in your plan that need attention. In addition, a business plan can be useful in securing the financing you need. With a solid business plan, you’re in a good position to convey your vision and get buy-in from lenders, community leaders and other stakeholders.
Elements of a business plan
Think of your business plan as a roadmap that covers where you’re going and what it will take to get there. Here are the elements that are typically included:
- Executive summary: This is a brief overview of your business, including what it does, the market it serves and its competitive advantage. You should include important financial statistics such as sales, profits and cash flow. If you’re seeking financing, specify how much you’re requesting and why.
- Company description: Describe in detail your company’s structure and ownership. You should also go over the industry outlook and opportunities that are open to your business.
- Products and/or services: Here you provide a high-level review of the products or services you’re providing, including descriptions and prices. Dive deeper into where your products or services fit in the market and the benefits they provide.
- Market and competitive analysis: In this section, you should provide market research pertaining to trends and themes in your industry. Examine your competition and how your value proposition will better appeal to your target customers.
- Marketing strategy and sales forecast: Lay out the details of your marketing strategy to explain how you will generate awareness and leads for your company and products. Also include a sales forecast to project sales for the first and subsequent years.
- Management and payroll: Identify who will be involved in running the operation and provide details on employee costs for the workers needed.
- Financial analysis: Provide projections that will convince lenders or investors to finance your operation. If your business is established, include balance sheets and income and cash flow statements for the last three to five years.
Business plans are a valuable tool to ensure a healthy, viable and profitable operation. Once your plan is in place, be sure to update it regularly to capitalize on new opportunities, mitigate risks and evolve your business over time.
Get started
Once you’ve mapped out a business plan, California Bank & Trust can help you set it all in motion. We provide flexible financing solutions[cite::108::cite] for every stage of growth. Contact a business banker at (800) 355-0507 or visit a branch near you.[cite::171::cite] [cite::172::cite]