The purpose of a business plan is to raise capital, so that you can start your business. With one, you with either obtain working capital which you will repay, or you will add monied partners who will participate in your profits.
You need to cover:
- Your market
- Your marketing and advertising plans
- Your product
- Why people buy your product
- Why people should buy your product instead of anyone else's product
- Your skills
- Your partners' skills
- How you and your partners can make product, sell product, account for product and get along with each other
- Who are your vendors
- Where will you store raw materials
- Where will you store finished goods
- What is your distribution channel
- Your cash requirements
- Cash flow model
- How will you spend your cash
- What is your budget
- How will you grow your market
- How will you grow your consumer base
Finally, when you present your business plan, you need to set yourself apart, so that investors are convinced that investing in you and your business is the best use of their money.
