Investors look at whether the management team presented a reasonable forecast for revenue and profit growth. When they see projections that seem unrealistic and unattainable, the management team immediately loses credibility in their eyes. Discussion of Management Investors want to align themselves with management teams they believe have the capability of successfully executing the strategies outlined in the plan--and be good stewards of the capital the investors put into the company.
Give the reader of the plan a clear indication that your team is a group of winners and people of good character -- with a strong drive to succeed. References 1 Small Business Administration: Gotten approvals from industry experts?
How does it benefit customers? Be specific about the means you will use to reach your target customers and the message you are going to present to the marketplace to convert prospects into paying customers.
The Product or Service Description What is your product or service, and how does it work? Without the right combination of message and means of delivering the message, even truly superior products have trouble gaining traction in the marketplace.
How do you stand out, and why does this business have such a terrific chance at succeeding? Lifecycle Where are you currently with this product or service?
Will you manufacture items yourself or outsource to someone else? How do you write the Products and Services section of a business plan? While you write up the Products and Services section of your business plan, keep your reader in mind.
Who will handle distribution, and how? The financial projections provide clues about how well thought out the venture is. As you write, avoid being too technical, assuming too much knowledge from your readers, and using buzzwords.
The management discussion has to go well beyond just a rehash of resume-type information. You must show the reader that you and your management team truly understand how to get out there and sell in a tough and competitive world.
Show the problem the customer has that you will be solving. These can add substance and credibility, so be sure to mention them. Perhaps most importantly, emphasize how and why you are competitive.
Financial Projections As they read the business plan, investors make a determination of whether the company can earn a sufficient return on investment to make the investment attractive for them. Things that you might take for granted or know inside-out might not be common knowledge to potential lenders or investors.
Describe a customer using your product or service and how it benefits him--save money, save time, improve his quality of life, health, or the productivity of his business. Venture capitalists and angel investors focus on four parts of the plan in particular.
Is it in the idea stage or do you have a prototype?Elements of a Business Plan There are seven major sections of a business plan, and each one is a complex document. Read this selection from our business plan tutorial to fully understand these. In the Professional Services section of your business plan's Management Plan, list and describe all those external professional advisors that your business will use, such as accountants, bankers, lawyers, IT consultants, business consultants, and/or business coaches.
Business Plan Section 4: Products and Services This is the part of your business plan where you will describe the specific products or services you’re going to offer.
You’ll fully explain the concept for your business, along with all aspects of purchasing, manufacturing, packaging, and distribution.
A business plan is made up of a narrative section that includes a description of the products or services, short- and long-range objectives, discussion of the industry, business model, competition.
This is one of the shortest sections of a business plan, but the one you should spend the most time working on. Whether your business plan is 5 or 30 pages, an executive summary must recap all of. This is the second in a four-part series by Hal Shelton, SCORE small business mentor and author of The Secrets to Writing a Successful Business ultimedescente.com month, we looked at “Why You Need a Business Plan (and the Best Style for You).” This month, we reveal four must-have sections of every business plan.Download