When you first had your idea for a product or service on which you believed you could form a business, it likely nagged at your mind for weeks or months before you decided it was viable. Now, you feel ready to start taking the steps necessary to get your business off the ground. Where should you start?
Before you can jump right into opening a business, you need to address many tasks. You will likely put a great deal of work into your business before you can even call it a business. Of course, the majority of entrepreneurs start in this type of situation, and having a business plan can prove immensely useful.
What is in a business plan?
Your business plan can essentially lay out the foundation of your goals and expectations for your company. Having a detailed plan can benefit you in many ways, including showing prospective investors that you have given your business a great deal of thought. It also helps you prepare your answers to important questions you may receive. Some details to include in your business plan include the following:
- Executive summary: Your executive summary will essentially summarize the entire plan in a shorter capacity.
- Company description: Your description can include information like who you are, when you plan on going into business, where the business will operate, the reach of the company's services, the company objective and other related information.
- Market research: Market research can help you understand your target market to which you want to aim your product or service.
- Product or service descriptions: It may seem obvious to include this information, but if your potential investors or customers do not understand your product or service, you may face difficulties.
- Management structure: Your plan can show what roles you will need for your company, how you intend to fill those roles, the authority individuals in those roles will have and much more.
- Financial information: As you could likely guess, explaining your financial plan will be an important aspect to investors and your company overall.
Your plan may also include other important information, and you may benefit from having details for each section. However, you may want to keep your plan from getting out of control and keep each section to approximately one page in length.
Sharing your plan
As mentioned, your business plan can prove immensely useful when trying to show investors and others exactly what you intend your business to entail. However, this plan can also prove useful to your legal counsel. An Arizona attorney can review your plan and help you take further steps in the business formation process.