Drafting a Business Plan

Business plan concept on green full frame blank blackboard with coffee cup. empty paper and magnifying glass

When starting a new business, it is vital to develop a comprehensive and detailed business plan. A successful business plan addresses each aspect of the operation including: objectives of the business, products or services it intends to offer, management structure, financial status, marketing and advertising plans and employment structure. Business plans may be as individual as the owners drafting them, but it is important to include certain key concepts when developing your plan.

The business plan should focus on addressing the needs and interests of three entities: (i) the investors who provide financial support, (ii) the marketplace, and (iii) the owner/entrepreneur. An owners/entrepreneur should construct a business plan that evaluates the roles of all three players in the future of the business. By focusing on all these elements in the business plan, the owners can easily identify how to locate and maintain customers and make projections regarding investors’ return on their investments.

The plan should address the goals of the business and strategies for implementing these goals. At the outset, the executive summary informs investors as to why the business exists and how it will be successful. This includes a description of the key players who will manage the business operations and their responsibilities and duties. The plan should identify the products or services that the business will sell. It should analyze competitor’s products and services and describe how its goods will compete in the market. As such, a marketing strategy for promoting the business and a plan to target customers should be part of the business plan. The marketing strategy should demonstrate intimate knowledge of the industry that the business operates in.

One of the most significant aspects of the plan is discussing the financial health and goals of the business. Especially if the business is receiving funding from an external source, the business must provide thorough financial data about its operations. This should include both historical information and financial projections detailing how the business plan will affect financial stability and growth.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.

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Drafting a Business Plan

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