Every entrepreneur is confronted with the burning question, what makes a great business plan?
When it comes to drafting a great business plan, understanding the main components of a business plan will help you understand if your idea is feasible, and what investors or other outside stakeholders would expect to see in your plan. Few things to note when drafting your business plan.
- Each business plan is different.
- The length and style will depend on your industry, the stage of your business, and the audience you are writing for.
Now, let’s get back to understanding the components of a great business plan;
- The executive summary is the overview that will give the reader a snapshot of everything that is in your plan!
- Problem and solution section is the most important part of the business plan, and where many entrepreneurs fail. You should be able to state clearly the problem you are trying to solve through the solution(s) you intend or are offering.
- Market section will explain who you are trying to serve, the size of the market and the different segments you are targeting.
- Competition is section you look at what and why you can do better than the competition. What is your “secret sauce”?
- The last component is the strategy bit that describes your unique value proposition, revenue model and business model. If your business plan is intended for investors or commercial lenders like banks, this is where you state how much you need.
Writing tips
When it comes to putting pen to paper;
- Short, clear, concise always wins. Keep your sentences short – no more than 15 words per sentence.
- Well-placed graphics, images and good design can really lift your business plan and make it professional
- Remember to include a cover page and a contents’ page
Are you now ready to draft your business plan? AMI’s Business Planning course covers this topic and more that include key skills that you need to write a winning business plan. Throughout the course, you are also provided with downloadable tools to help you come up with a business plan you can be proud of. Sign up today for FREE and start learning! Click HERE
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