No matter how long you have been operating your business, every business still requires a well-structured plan. A good Business Plan Pitch can help you in securing investment for your startup or for expanding your operations.
A survey by the University of Oregon proved that 64% of businesses that modeled a plan could grow their businesses when compared to 36% of people who had not yet devised a proper plan.
A well laid out business plan helps you to focus and evaluate your business and allows you to analyze what’s working and what’s amiss. It kind of gives you a roadmap towards your future goals.
Here are the 7 elements on which every business plan is structured:
1. Executive Summary
This is the first and foremost step that is included in your plan and one of the most important ones too. It reveals information about your business plan in a relatively short space. A good executive summary must summarize all the other sections and highlights of your plan. Therefore, it is advisable to finish your executive summary at the end of the plan.
2. Business Description
This section deals with useful insights about your company that may include your products and services, your mission statement, details about its inception, current market growth and expected growth rate in the coming years and the target audience that the company aims to serve.
3. Market Analysis
Looking at the market opportunity, closely understanding your competition that serves the market and how your company stand out are important aspects to be considered. You can use data and statistics in this section and compare your growth rate with that of your competitors and can also analyze your future goals. Most of your analysis should come from looking at the upcoming trends in your area and industry.
4. Organization & Management
More than your products and services, investors are interested in the people and the team that is behind its creation. Capitalists would like to understand that you have a competent team that has the mettle to stick on. A business is more likely to succeed if you have the right management and the right team. Hence it is essential to highlight the expertise and qualification of each of your team member.
5. Sales Strategy
Every investor is interested to know whether or not their investment is going to fetch profits. It is, therefore, necessary that you formulate your sales strategies and include them in your plan. You may explain your pricing strategy, promotional strategy and also your development strategy in your plan.
6. Funding Requirement
This is the part where you ask for the total amount you want to raise. If you cannot zero in on an exact number create a range of numbers like it can cost something from $300,000 to $500,000. You must also put forward a timeline just so your potential investors know when and what to expect from you.
7. Financial Goals
In the finals section of your plan, you will divulge information about your financial goals and how you plan to reach them based on your market research. You should also highlight your current and potential growth rate based on the market trends if you plan to secure the optimum amount of funds.