• A business plan is the first step to starting a new business.business plan 10609 image by pablo from Fotolia.com
  
  A business plan is important to ensure you have reviewed all aspects of your business. The plan helps you to focus on important issues you may not have thought through. The plan gives you a good base to analyze the potential success of the venture. A business plan is also required when seeking funding from investors or financial institutions. Four important types of information must be present in your completed plan.
  
  

Company Overview

• A business plan must define exactly what the company is, what products the company will be creating or what services will be offered. The plan should start with an overview of what will be covered in the plan, such as financial information, competitor information, funding sources and all research performed. This overview of the plan is called the Executive Summary. It is a way to highlight important points. Consider this the attention grabber for people reading the business plan.
  
  

Industry and Marketing Information

• The business plan must show how the business will operate and how that compares or distinctly contrasts to its industry. Describe the target market you are selling to. Equally as important is describing competition in the area, either geographically or in the industry depending on your specific business. For example, if you are opening a doughnut shop, how many are in the area, what are their sales and are they tied to a national franchise? Explain your marketing tactics and provide information on projected marketing costs.
  
  

Operations

• Describe everything associated with the day-to-day operations. You will need to explain equipment requirements, facility requirements, production, inventory, transportation or shipping (if applicable) and technology requirements. This section needs to provide initial and ongoing cost estimates. The operations section must also provide details on the personnel operating the business. This can be a separate section of the business plan, however, it needs to show the management structure including biographies and how the general company personnel fit into the overall structure. Personnel costs should be presented for current needs and projected needs.
  
  

Projections

• A business plan must show how you expect the company to be performing in the future. Provide milestones for the near future and distant future. For example, where do you expect the business to be in three months, a year or five years. Also provide exit strategies, such as when you expect to pay off any loans, buy-out investors or even when you intend to sell the company. This information needs to be closely tied to current financial data, such as initial capital and projected finances.