3 Important Parts Of A Business Plan

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A business plan is essential when you’re starting a new company. It outlines how you plan to run your company, generate a profit, and succeed long term. You should already know that, and you’ll know a few parts of a business plan you’ll need to include.

Sales and marketing strategies are some of the more notable of these. They’re far from the only sections you should include in this, however. Instead, there are several other sections you’ll need to include.

Three sections can be much more important than you’d think, so they’re worth focusing on from the start.

Parts Of A Business Plan: 3 Important Picks

1. Management Description

You’ll set your business up in a specific way, and you’ll want to have a certain management structure in place. Both of these need to be included in your business plan. They’ll have their own section, and you should be as detailed as possible when you’re putting this together. There could be several sub-categories in this.

You’ll have to highlight the company leaders, human resources requirements, and even the legalities. While it can take time to put all of this together, it’s an area you have to figure out, anyway. You’ll need to do it to properly set up and structure your business, so detail it in your plan.

2. Finances

While few people are great at accounting, finances are always one of the core parts of a business plan. You’ll have to go through your financial projections for the first year of operations, at least. That includes the estimated costs and income for the first few months of operations.

These should be as detailed as possible. Break your costs and income into sub-categories and elaborate on the figures as much as you can. As complicated as it is, it’s one of the more important parts of running and leading your business the right way.

3. Executive Summary

The executive summary is the first section in a business plan, but it’s usually left until last when it’s filled out. That’s why it’s often easily overlooked. It summarizes the business plan as a whole and briefly covers everything you’ll elaborate on further. See it as the elevator pitch of your business plan.

There can be several subsections within the executive summary. The company’s mission statement and values are some of the more notable of these. Products and services are also a core part of this, so make sure you briefly outline. You can elaborate on them further later in the business plan.

Parts Of A Business Plan: Wrapping Up

There are multiple parts of a business plan, all of which are important. Despite that, some sections can be easily overlooked. You would’ve already thought about including your business structure and sales and marketing strategies.

They’re far from all you’ll need to include, however. Make sure you know exactly what you need to include in your business plan. With how important the document is, there’s no reason not to put the time and effort into it.

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