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Learn more about Business Plan

What is a Business Plan?

A business plan is a tool with three basic purposes: communication, management, and planning.

  • Communication: As a communication tool, it is used to attract investment capital, secure loans, convince workers to hire on, and assist in attracting strategic business partners. The development of a comprehensive business plan shows whether or not a business has the potential to make a profit. It requires a realistic look at almost every phase of business and allows you to show that you have worked out all the problems and decided on potential alternatives before actually launching your business.
  • Management: As a management tool, the business plan helps you track, monitor and evaluate your progress. The business plan is a living document that you will modify as you gain knowledge and experience. By using your business plan to establish timelines and milestones, you can gauge your progress and compare your projections to actual accomplishments.
  • Planning: As a planning tool, the business plan guides you through the various phases of your business. A thoughtful plan will help identify roadblocks and obstacles so that you can avoid them and establish alternatives. Many business owners share their business plans with their employees to foster a broader understanding of where the business is going.

  • What Should a Business Plan Contain? recommends that a business plan include:

    • Executive summary -- a snapshot of your business
    • Company description -- describes what you do
    • Market analysis - research on your industry, market and competitors
    • Organization and management -- your business and management structure
    • Service or product -- the products or services you’re offering
    • Marketing and sales -- how you’ll market your business and your sales strategy
    • Funding request -- how much money you’ll need for next 3 to 5 years
    • Financial projections -- supply information like balance sheets
    • Appendix -- an optional section that includes résumés and permits


Sample Business Plan
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