Executive summary: More

than merely an introduction to your business, the executive summary is

a capsulated version of your entire business plan, including all key points

and critical information. The executive summary is frequently the first

place that readers will go to learn about your business, so it is important

that it be written clearly.

Business description: In

this section, you should clearly identify your business's mission, goals

and objectives as well as provide information about the company's history,

its current status, and its future potential and growth opportunities.

You also want to give a comprehensive description of the business, including

the company's location, physical facilities and business structure. For

instance, are you a sole proprietor, or is the business a partnership,

corporation, or a limited liability company?

Product and/or service description:

Try to describe your product and/or service in vivid detail and explain

its benefits from the customer's perspective. Explain how the product

or service is produced and at what cost, including the rationale behind

the pricing strategy.

Marketing: Marketing

plays a vital role in successful business ventures. Be sure to explain

your marketing plan in detail and include the results of any market research

you have conducted. Identify the market and show where it is headed. Is

the industry growing and, if so, how quickly?

Demonstrate demand for your

product or service by profiling the typical consumer and discussing industry

trends. It's also important to describe how you plan to sell your product

or service. Are you looking at direct sales, mail order, telemarketing,

e-commerce or considering some combination of these? How you advertise

and promote your products could mean the difference between success and

failure.

Competition : Your business

plan needs to address competition. Be sure you know exactly who your competition

is. Also, it's important to include information about the competition,

such as the results of any research that you or another entity conducted

on your industry. How does your competitor's products or service differ

from yours? What are your competitors' strengths and weaknesses? What

strategies do you have in place for dealing with the competition?

Management and operations:

As you prepare this section, keep in mind that people are the most valuable

business asset and many potential investors view the management team as

a critical predictor of a successful business. Describe members of your

management team, their responsibilities and backgrounds. If you are using

the business plan to attract financiers or strategic partners, you may

want to include copies of the team's resumes. Also, outline the need for

additional talent and include staffing projections.

Financial data: Your

business's historical financial information and projections for future

growth form the foundation of a solid business plan. Some documents to

include in your plans are balance sheets, profit and loss statements,

projected income statements, break-even analyses, cash flow projections,

and a statement that outlines the sources and use of funds for the past

two years. These can be useful benchmarks for assessing future business

growth and development.

When developing a business

plan, it's a good idea to consult with a CPA. CPAs have the knowledge

and experience required to help a business achieve success.

The GSCPA is a professional

organization for CPAs in Georgia with more than 10,000 members throughout

the state. For information, visit www.gscpa.org .

Back

to Business Home Page