9 Must-Have Components Of a Solid Business Plan
Many businesses have achieved great success by creating solid online business plans. A business plan is a crucial tool for the success of any business. Besides helping you get funding for your business, it lays out the vision of your business growth and suggests creative steps to get there. It’s a long-term document, meaning it shows your projections for 3-5 years and showcases the plan of how your business is anticipated to grow its revenue. If your business needs funds to scale operations, you’ll need to apply for a loan from a commercial bank or approach investors. But for commercial banks or private investors to give out any loan, they want to see a solid business plan. That’s said, here are the elements you must include in your online business plan to make it solid and compelling:
Your executive summary is the first thing to appear on the online business plan
Executive summary gives an overview of your entire online business plan. It should spell out the profile and goals of your business. Executive summary makes up the most vital part of your online business plan, and therefore, it should be written in such a way that it narrates to the investors what your business does, and where you want it to be in the next 3 to 4 years. It should also tell investors how your business idea is actionable and how it can result in greater success for your business. Experts recommend that you write the executive summary last so that you can capture everything in it.
Your online business plan should include a market analysis section
This section should layout out your knowledge of the target market. It also includes your knowledge of the size and needs of your target market, market share, and your pricing structure. This section should also encompass potential regulatory restrictions your enterprise might face.
Your online business plan should have an organization and management section
An organization and management section should follow the market analysis section of your online business plan. Here, you'll show the organization structure of your business, information about ownership, and details about your management team. Point out the team that has played a significant role in helping your business reach where it is now. Will the team continue to be part of your journey in scaling up? Include that information.
Include marketing and sales in your online business plan
Here, you will have to show your marketing and sales strategy. Aspects of layout out in your marketing strategy include expansion strategy, market penetration, channels of distribution, as well as communication plan. In your sales strategy, include aspects of sales activities and other sales techniques you intend to implement.
Create a section for funding request in your online business plan
If your business plan is aimed at sourcing funds for expansion, then this is the section to put up your funding request.
The appendix should be the last section of your business plan
This section is optional. But if you choose to include it, make sure it contains a lot more financial data, as well as reference letters, legal documents, permits or patent, product pictures and more.