Basics of Business Plans
Updated: Oct 23, 2019
Let's talk basics about business plans…
I like to break business plans into 3 sections-- summary, analysis, and reflection.
The first of part of your business plan is summary. This is where you get into the specifics of your business written down and talk about your mission and vision. This includes the executive and company summary that dial in on the specifics within your business. These are the sections that give an overview and should be at the beginning of your business plan!
This is what gets the attention of whoever is reading your plan, especially partners or investors! What makes your business unique? What is your special vision and mission for your business? Who works in the business? What is the summary?
This section should be concise, yet to the point and when YOU read it, you should feel the fire in your soul that you felt when you first pondered on this idea. Write authentically and be honest about your situation, but don't be afraid to brag and sound professional! It is YOUR business plan and is truthfully for few eyes to see. Not everyone wants to see your business plan and that's okay!
I am planning on at some point releasing my business plan for the sake of transparency and talking about how I use my business plan to scale and level up in my company and connect to my purpose!
The next section should be analysis. Market analysis, industry analysis and description, and specifics of your brand. These are all important pieces of information that potential partners and investors want to see BUT they are also vital to understanding how your business is a change-maker in your industry.
While industry and market analysis may seem like the same thing dividing them into two sections can be really beneficial for specifically you, as the owner of the business.
Industry analysis is the overview of the industry you are in. For example, if you are trying to open a spa-- what are other spas in the area like? How much money does this industry generate? What is the history of the industry? Are there niches within this market? Really dive into the industry itself and give as much information and research as you can! This gives you credibility, and it also helps you understand your place in the industry.
Market analysis is a deep dive into the niche market, clients, and pain points you are going to be catering to with your business. I like to start out market analysis with a recap of industry analysis and then dive deep into exactly who your ideal client is, what their pain points are, and specifically what your niche market is like and how you stand out.
The last is the reflection part of the business plan which includes metrics, sustainability, risk, and finances.
Metrics are really important to any type of business or organization that you are going to be running. Having a review process not only for yourself and your clients helps you with a long-term sustainability plan for your business.
Another key part of the reflection section is understanding the risks and finances that this business will take on for you and any partners you may take on. Truthfully risk is one of the hardest things to identify especially in your own business so asking for help with this part is always recommended! It is super easy to overlook some of the riskiest parts of your business when this is your dream.
Overall the reflection part of your business plan is a lot of little sections that are interconnected. Sometimes it can be difficult to write section by section since they are all interdependent on each other. I recommend jotting down as many notes for each section and writing what makes sense to you in the order it comes. You can always revise and move around your thoughts. Getting them down on paper is the most important thing!