There are four main chapters in a business plan—opportunity, execution, company overview, and financial plan. The opportunity chapter of your business plan is where the real meat of your plan lives—it includes information about the problem that you`re solving, your solution, who you plan to sell to, and how your product or service fits into the existing competitive landscape.
Second, your business plan should be a tool you use to run and grow your business. Something you continue to use and refine over time. An excessively long business plan is a huge hassle to revise—you`re almost guaranteed that your plan will be relegated to a desk drawer, never to be seen again.
Investors and loan providers need to know that you have a solid understanding of the trajectory of your business. You need to prove that there is an attainable and sustainable need for your solution, that you have a strong business strategy, and that your business can be financially stable.
The executive summary of your business plan introduces your company, explains what you do, and lays out what you`re looking for from your readers. Structurally, it is the first chapter of your business plan. And while it`s the first thing that people will read, I generally advise that you write it last.
Don`t bother to include terms of a potential investment, as that will always be negotiated later. Instead, just include a short statement indicating how much money you need to raise.
All business plans should be reviewed and revised at least monthly. The review should include looking for changed assumptions and analyzing plan vs actual results with management of the difference.