How do you build a business plan?


Quick Answer

To write a business plan, create a mission and vision statement, define your target market, and describe your products and services. Next, describe your company’s structure, define a marketing strategy and demonstrate finances. Finally, write an executive summary.

Continue Reading

Full Answer

  1. Create a mission and vision statement

    Come up with a mission statement that describes why your business exists. Your vision shows the direction of the business.

  2. Define your target market

    Define the market your business serves, and what customer needs it addresses. Describe the current status of your industry and the types of customers you are targeting.

  3. Describe your products and services

    Describe the products and services you are bringing to the market and include prices. Indicate what makes your idea unique and competitive.

  4. Define the company structure

    Note the company’s management and legal structure. Include the licenses and permits you have secured, and how the business is run. Include short biographies of top managers.

  5. Describe your marketing strategy

    Indicate the preferred marketing strategy, including promotion and pricing. Factor in the target market in the overall strategy.

  6. Demonstrate finances

    Provide a balance sheet indicating the value of the company. This should include the past three years for an existing business. Include an income statement, cash flow statement and personal financial statements for each principle.

  7. Write an executive summary

    Write a brief of what your business is, and why you are in the specific line of business. This is included in the first section of the business plan.

Learn more about Managing a Business

Related Questions