Business Planning

Executive Summary
The executive summary will provide readers and potential investors a brief yet dynamic description of the key components of the business plan. To make sure it is clear and comprehensive, it is often the last section to be written. A first-time reader should be able to read the summary by itself and know what your business is all about. The summary should stand-alone and should not refer to other parts of your business plan.

The summary, between one to three pages in length, will motivate readers to continue reading the remainder of the business plan in more detail.

The summary should include the following subsections:

Business Description
Provide a brief description of your company. The opening paragraphs should introduce what you do and where. From this section, the investor must be convinced of the uniqueness of the business and gain a clear idea of the market in which the company will operate. The legal form of the business such as LLC, S-Corporation, C-Corporation, Partnership, or Proprietorship should be stated as well as the objectives of the business via a mission statement that clearly states the business' purpose and values. Include a vision statement as well as where you see the business in five to ten years. Be sure to answer the following questions that are usually asked by potential investors:

 What form of business are you in?
 What type of business is it (e.g. manufacturing, consulting, reselling, services)?
 Is it a new business, a takeover, a franchise?
 What is your product or service?

Products and Services
This should include a very brief overview and description of your products and services, with emphasis on distinguishing features. Be sure to answer the following questions that are usually asked by potential investors:

 How will the products be made or the services performed?
 What will they do for the customers/clients?
 What is different about the product or service your business is offering?
 What value do you add to your product?
 What is it that separates your company from the rest of the pack?
 Is your product or technology proprietary, patented, copyrighted?

The Market
Provide a brief description of the market you will be competing in. Here you will define your market, how large it is, and how much of the market share you expect to capture. It is important to reference credible sources and include the name of your source(s) of information along with a date. Indicate how you will market the products/services and which channels will be used to deliver your products/services to your target market(s) (i.e. website, direct sales force, Value Added Resellers, channel partners, etc…). Be sure to answer the following questions that are usually asked by potential investors:

 What are the key drivers, trends, and influences in the market?
 To whom do you market your products and services?
 How will you educate your customers to buy from you?
 Who is your target market?

Competition
It is important to show the reader that you have investigated the competition. Identify the direct and indirect competitors, with analysis of their pricing and promotional strategies, as well as an assessment of their competitive advantage. Based on this analysis, you can identify key obstacles for your business, the additional services you might offer, competitive challenges, as well as opportunities ahead. Briefly describe the competitive outlook and dynamics of the relevant market in which you will operate. Be sure to answer the following questions that are usually asked by potential investors:

 Is your service better, faster, cheaper and if so why?
 Is your advantage a temporary “window” and are there steps you can take to protect your position?
 What have you learned from the competition? From their advertising?
 How is their business currently? Steady? Increasing? Decreasing?

You may also wish to include the following table:
Management Team.................
Risk/Opportunity.....................
Financial Summary......................

This table should include a recap of your income statement:
Capital Requirements..................
use of funds.......

Total 47 pages for this Business planning letter
Vivienna from business-letter2u.com