As we have discussed, many formats can be used to develop your personal business plan. However you choose to present it, it’s important to have a well-structured plan that provides thorough information and research to your potential lenders, financiers, or partners. The following is the conclusion to a ten-segment business plan that can be used to help you better understand what your readers will be looking for. The first four sections included the executive summary, product or service description, market research, and marketing and advertising strategy.
5. Competition: The old saying, “keep your friends close and your enemies closer” surely applies to the process of starting and running a business. In this section of your business plan, you can include a separate file for each competitor in your area. Include in each competitor’s file their location, income, opening date, and other similar information. Is your company growing, declining or stable? Your readers will be looking for proof that your business will be able to hold its own in your local market. Include your competitors’ strengths and weaknesses and describe how you will address these aspects. Also include a diagram of each competitor’s market share. This is also another good place to emphasize the differences between your product and that of your competitors.
6. Operations – The operations section of your business plan should describe the logistical requirements of operating your business. Divide this section into segments that address the products and raw materials required, personnel, facilities, equipment, and production strategy. All of these are pretty clear. The production strategy should include a description of how your product will be manufactured, as well as any potential problems that may arise, with solutions. Also include your business hours in this section. Your lenders will be looking at what you have done so far to get your business off the ground and that you have a thorough understanding of the manufacturing process.
7. Management – Here you will provide a complete profile of each member of your senior management team. Include duties and responsibilities for each position, as well as salaries and benefits. If any of the positions are already filled, please include personal background information on each of these individuals.
8. Personnel: This section will describe the information of the employees. Include the number of employees needed, as well as future projections. Detail a list of all the positions necessary to operate your business. Describe what skills your employees will need to possess. Also include how you plan to pay these employees, such as hourly, salary, overtime, etc.
9. Financial data: here you will include all the financial data related to your company. If you are not in a dire financial situation, find someone to help you with this section of your business plan, as this section is crucial in determining whether or not you will be considered for loans. Include a balance sheet, break-even analysis, income statement, and cash flow sheet.
10. Supporting Documents – This is where you will include any other documentation or research that has not yet been included. It’s basically an addendum of resumes, credit information, quotes and estimates, lease or purchase/sale contracts, census/demographic data, and any other legal documents that are relevant to your business plan. It’s also a good idea to include any credible references you may have.