[Music] what is a business plan a business plan is a document that defines in detail a company's objectives and how it plans to achieve its goals a business plan lays out a written roadmap for the firm from marketing financial and operational standpoints both startups and established companies use business plans [Music] a business plan is an important document aimed at a company's external and internal audiences for instance a business plan is used to attract investment before a company has established a proven track record [Music] it can also help to secure lending from financial institutions [Music] furthermore a business plan can serve to keep a company's executive team on the same page about strategic action items and on target for meeting established goals [Music] although they're especially useful for new businesses every company should have a business plan ideally the plan is reviewed and updated periodically to reflect goals that have been met or have changed sometimes a new business plan is created for an established business that has decided to move in a new direction a business plan is a document describing a company's core business activities and how it plans to achieve its goals startup companies use business plans to get off the ground and attract outside investors a business plan can also be used as an internal guide to keeping an executive team focused on and working towards short and long term objectives [Music] businesses may create a lengthier traditional business plan or a shorter lean startup business plan [Music] good business plans should include an executive summary in sections on products and services marketing strategy and analysis financial planning and a budget [Music] understanding business plans a business plan is a fundamental document that any new business should have in place prior to beginning operations [Music] indeed banks and venture capital firms often require a viable business plan [Music] before considering whether they'll provide capital to new businesses operating without a business plan usually is not a good idea in fact very few companies are able to last very long without one there are benefits to creating and sticking to a good business plan these include being able to think through ideas before investing too much money in them and working through potential obstacles to success [Music] a good business plan should outline all the projected costs and possible pitfalls of each decision a company makes business plans even among competitors in the same industry are rarely identical however they can have the same basic elements such as an executive summary of the business and detailed descriptions of its operations products and services and financial projections [Music] a plan also states how the business intends to achieve its goals [Music] the plan should include an overview and if possible details of the industry of which the business will be a part [Music] it should explain how the business will distinguish itself from its competitors while it's a good idea to give as much detail as possible [Music] it's also important that a plan be concise to keep a reader's attention to the end a business plan is a document that summarizes the operational and financial objectives of a business it is a business's roadmap to success with detailed plans and budgets that show how the objectives will be realized a business plan is a guide for how a company will achieve its goals for anyone starting a business crafting a business plan is a vital first step elements of a business plan the length of a business plan varies greatly from business to business consider fitting the basic information into a 15 to 25 page document then other crucial elements that take up a lot of space such as applications for patents [Music] can be referenced in the main document and included as appendices [Music] as mentioned above no two business plans are the same [Music] nonetheless they tend to have the same elements [Music] below are some of the common and key parts of a business plan executive summary [Music] this section outlines the company and includes the mission statement along with any information about the company's leadership employees operations and location [Music] products and services here the company can outline the products and services it will offer and may also include pricing product lifespan and benefits to the consumer other factors that may go into this section include production and manufacturing processes [Music] any patents the company may have as well as proprietary technology information about research and development r d can also be included here market analysis a firm needs a good handle on its industry as well as its target market [Music] this section of the plan will detail a company's competition and how the company fits in the industry along with its relative strengths and weaknesses it will also describe the expected consumer demand for a company's products or services [Music] and how easy or difficult it may be to grab market share from incumbents marketing strategy [Music] this section describes how the company will attract and keep its customer base and how it intends to reach the consumer a clear distribution channel must be outlined the section also spells out advertising and marketing campaign plans and the types of media those campaigns will use financial planning this section should include a company's financial planning and projections [Music] financial statements balance sheets and other financial information may be included for established businesses new businesses will include targets and estimates for the first few years plus a description of potential investors budget every company needs to have a budget in place [Music] this section should include costs related to staffing development [Music] manufacturing marketing and any other expenses related to the business [Music] the best business plans aren't generic ones created from easily accessed templates [Music] a company should entice readers with a plan that demonstrates its singularity and potential for success [Music] [Music] [Music] so you