2. Of the many components of a business plan,
a few of the most important to get right are
the marketing plan, the management team
description, and the financial plan. These
sections are where the entrepreneur has a
chance to show readers how the business will
reach its customers, who the business will be
run by and how they are qualified, and the
financial results expected from the venture.
3. The marketing plan must relate directly to the
preceding three sections of the business plan:
the industry, customer, and competitive
analyses. Readers should see that the
branding, promotion, distribution, and
pricing described in the marketing plan is a
natural outgrowth of this research.
4. It is also important for readers to see signs of
a decisive manager who is able to make
strong and clear choices even with limited
information to act upon. The company cannot
seek every single customer in every single
way, and choosing a clear strategy to market
and limited tactics to use is important here.
5. This section is an opportunity to prove that
the management is well chosen for the task
at hand and the functions they must execute.
If co-founders intend to be the managers, it
should be clear that they bring skill and
experience to the table, whether it is industry
or function specific.
6. The financial plan should sum up the
financial results of the business, showing
funders how much cash is required to launch,
what the capital will be used for, and how
what returns should result.
7. Lenders will be looking for the company's
ability to make timely payments and hold
assets as collateral. Investors will be
interested in dividends, growth potential, or
exit strategies involving sale of the company,
franchising, or additional rounds of funding.