by Author Name Withheld 161

Created on: April 17, 2009

Every new venture must be equipped with a solid business plan. A business plan is a written document that describes the business in depth as a means to obtain outside funds to support the company. The plan itself is directed to investors, bankers, lawyers, and venture capitalists. A full plan consists of ten detailed sections.

While the Executive Summary is the first section of the business plan, it should be written last. It is the overview of the entire plan and should be brief, clear and concise. The writing must catch the attention of the potential investor or the funding for the venture may be dismissed on the spot. In many cases, only this section ends up being read.

The second section is the Business Description. It provides a general description of the venture - industry background, goals and milestones, and anything that sets the venture apart from others in the market. Other information that can be included in this section would be significance of the venture name, as well as any intellectual property rights.

The Marketing Segment is a difficult section and it has many breakdowns. The first part is research and analysis. The target market must be identified so the reader knows the customers that are involved in the venture. This should also include a projection of company sales, as well as market growth factors, like trends and policies. A competitive analysis - an assessment of the strengths, weaknesses, and product comparison of the competition is also needed. The second part of the Marketing Segment is a strategic marketing plan that incorporates the philosophy and methods of market research, as well as a pricing policy and advertising campaign. Potential investors want to know how the company will establish itself in the market.

The fourth section of the business plan is the Operations Segment. This section delves into the actual functions of the venture - location, employees and wages, community and taxes. Operation costs and transportation access should also be included.
The Management Segment describes significant individuals as part of the venture. This includes the management team, the legal structure, and board of directors. A resume for each person on the management team are important so that the potential investor will know the experience and responsibilities of the people involved. The same is for the board of directors and any other consultants and advisors. The legal structure should describe stock options, compensation, and company ownership.

The

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