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Before you can think about opening the doors to your new enterprise, you’ll need to develop a solid business plan. A business plan is a written document that serves as a road map for operating your business. It identifies the purpose of your business as well as the resources you need to make it a success. A business plan typically consists of four general types of information, according to the U.S. Small Business Administration.

Executive Summary. The executive summary provides an overview of your business venture. It includes a synopsis of the company, as well as your mission statement and key selling points like offering outstanding customer service or superior products. The summary also outlines which niche you plan to attain in the market and why you think there is a need for your business. According to Business Know-How, your executive summary should be between two and four pages in length.

Marketing Strategy. Your marketing plan should first identify your target market, which can be broken down into demographic factors like age, gender, level of income and education. It should identify the methods you intend to use to reach your target market, like the type of media for advertising or any types of promotional methods like special pricing or events. Your marketing strategy must also factor in your competition, identifying the key players in your market and how you plan to obtain some of their market share.

Financial Information. Your business plan should include an array of financial data. In particular, you should show projections for income for each month during the first 2 years, monthly cash flow projections for the first 2 two years, a projected annual balance sheet and a break-even analysis, which predicts the point at which your business will begin to turn a profit. If you’re attempting to obtain financing, you’ll need to justify the amount of the loan you’re asking for with your detailed financial statements.

Operational Information. Your business plan must detail your management and operational structure. If you’re operating as a sole proprietor, this will be relatively simple. However, if your organization involves several stakeholders, you will need to supply an organization chart. If your business involves a complex process such as the manufacturing of a product, detail each step of the process in your business plan. Also identify items such as hours of operation and how many employees you’ll need. (www.smallbusiness.chron.com).

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