Business Plans 101: Nailing the Basics

There are two primary components to a business plan: the narrative portion (the words), and the financial portion (the numbers). Below is a guide to handling both with aplomb.

The Words
The narrative portion of your business plan should clearly explain your business concept, strategies for achieving your goals, and so on. Specifically, you need to include the following:

1. Business Description

• Describe it simply and clearly.
• What is the opportunity? What problem are you solving for paying customers?
• How much do customers currently pay to solve that problem?
• Your business model, i.e., source(s) of revenue.

2. Products and/or Services Offered

• What are you selling?
• At what price?
• What are the features and benefits of what you are selling?
• What makes it different and desirable?
• How will products be manufactured or services provided? 

3. Market Analysis

• Industry overview—describe the size of your industry and its unique characteristics
• Define your target markets. What is the size of your target market? What is its growth potential?
• Is the market competitive? If not, why not?
• Who are your customers?
• Why will they buy from you?
• How will you reach your customers, i.e., what is your marketing/sales plan?

4. Location

• Where will your business be located? Why this site?
• Do you need to rent space? If so, how much square footage do you need?
• At what cost? Who pays for utilities? Who pays the real-estate taxes?
• Are renovations or a build-out required? If so, who pays?