By Fernando Berrocal

Your efforts will be guided by a "Business Plan", which focuses on short and long-term objectives. This plan expresses (and charts) your aspirations, and demonstrates to partners, investors, and lenders why your business can and will flourish. It shows you how to get from where you are to where you want to be in the upcoming years. Your business plan, whether it's a standard or a "Lean Startup Document", must include everything a potential investor would want to know. What is your unique selling point? Why is now a good moment to form a business like yours? How much would you and your potential investors or lenders profit?

The prospect of drafting a blueprint for your corporation’s future years may be intimidating, but a plan is just as hard as you make it. Let's talk about what information you'll need, how it should be structured, and what extra steps you'll need to do.

What Exactly Does a Business Plan?

There is no one-size-fits-all strategy for writing a business plan. You may, and should, put your own twist on the concept. However, most businesses plan include some of these topics in varying degrees of depth:

1. Summary of the Report: This basic summary informs readers about your business and why they should be optimistic about it. This is likely the most crucial element of the strategy. An executive summary is usually approximately a page long and contains:

• Mission Statement:  The name and goals of your business.
• General Business Information: The state where it was founded and a physical address.
• Highlights: Even if it's new, offer some highlights to discuss. What type of early traction you're getting and what other possibilities do you see?
• Products and/or Services:  What precisely do you sell or do?
• Financial Objectives: Do you want to get a business loan, a grant, or some other form of funding?
• Future Plans: Provide a general overview of where your business is heading.

2. Business Description: Establish the stage, get into the technical aspects of your business. Basically, respond to these questions:

• What does your business do, and how does it differ from the competition?
• What type of market or consumer will you serve?
• What are the strengths of your business?

3. Analyze the Market:  Your business doesn't exist in a utopia; it must prosper in its industry, alongside its competition. Your market study will be a close evaluation of the market you're entering, displaying your knowledge of the ins and outs, rising trends, and themes. A good market analysis will contain:

• Industry Description: Your industry's history, size, and major players.
• Overview of the Target Market:  Who are you trying to reach, and what do you know about them?
• Size of the Target Market and Growth Potential:  Is the target market large enough to support a long-term business?
• Your Potential Market Share:  What percentage of this market do you estimate you can control?

4. Business Organization: Describe how your organization will be formed in logistical and legal aspects. You should have an organizational chart that shows who is in charge of what. Lay down each person's tasks, as well as their backgrounds and experience. You might also mention any urgent recruiting needs. Include details about your firm's legal structure. Are you a sole proprietorship, a Limited Liability Company (LLC), or a S Corporation? This informs investors and lenders about the legal safeguards you may or not have in place.

5. Product Development Plan: Here you can describe your products or services. What needs do they satisfy, and why should customers want to buy or acquire them over competition's options?  Of course, your product is more than just a shelf item. This part should also include information on sourcing and fulfillment, intellectual property, the present status of your products, and future growth and improvement plans.

6. Plan for Sales and Marketing: Even the best business concept will fail if no one is aware of it or can't obtain it. Marketing and sales have a role in this. You should concentrate on two points:

First there is “Positioning”, which involves more than just your logo and name; it also includes your company culture and reputation. Also, there is “Promotion” which encompasses everything from where you'll advertise to possible content marketing strategies.

Describe the process of making a sale. Who will close the sales, what tools will they utilize, and what is the overall plan for acquiring, converting, and keeping leads?

7. Financial Plan and Projections: You won't have any data or revenue statements to show for a brand-new business, but you will be required to provide estimates and forecasts of your future performance. Make forecasts for your business for at least the next 12 months, but preferably for the next 3-5 years. As factors change, make revisions to this document; the idea is to establish a baseline that you can then surpass—or, alternatively, fail to surpass, and explain why.

Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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