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How to Create a Business Plan in 7 Steps (1/3)

When you are ready to start your own business, one of the first steps in the process will be to create a business plan to outline the various details of your business. While it is possible to forego this step, taking the time to create a business plan that is comprehensive can optimize your chances for success and profitability in the future.

In this three-part blog series, we’ll highlight the essential components of an effective business plan, briefly discussing what each element should contain. If you have questions about business plans or need any legal advice regarding any aspect of your business, don’t hesitate to contact Denver Business Law Attorney Thomas E. Downey. He has the experience, skills and knowledge necessary to help you favorably and efficiently resolve any legal matter pertaining to your business.

Ready to Create a Business Plan? Here’s What the Plan Should Include…

business plan puzzle

The following outlines the various parts of a comprehensive business plan:

1. The Executive Summary

This vital component of a business plan will essentially provide an overview of the entire business plan, briefly stating the business’ purpose and goals. Some of the specific elements that should be touched on in an executive summary for a business plan are the:

  • Overall concept of the business – More specifically, describe what the business will sell, who it will sell these products or services to and why this business may have some competitive advantage over existing businesses in the same industry, field or market.
  • The finances – This involves a brief explanation of the capital that may be necessary to start the business and to eventually grow the business.
  • The current position of the business – Namely, this should detail how the business currently sits, as well as who may be the primary owners and/or executives for that business.

If you plan on seeking investors for your business, having a concise, well-written executive summary will be critical.

2. The Description of the Business

Following the executive summary, there should be a more in-depth description of the business and the intent behind it. In this description, providing some context for the business by describing the current state of the industry in which the business will fit is important.

Once this background has been explained, it will be time to delve into some of the specifics of the business; in particular, this may include:

  • The proposed structure of the business
  • The legal form of the business
  • The principals of the business (including what benefits or value each principal will bring to the business)
  • The products and/or services that will be sold, as well as the target market for the business
  • The business’ proposed support systems, which may include advertisers, marketers, customer service representatives, etc.

We will continue our discussion of how to create a business plan in a few upcoming parts of this blog series – don’t miss them!

Denver Business Formation Lawyer at Downey & Associates, PC

If you need help with any aspect of forming a business, you can count on Denver Business Formation Lawyer Thomas E. Downey. Since 1983, Thomas Downey and the other legal professionals at Downey & Associates, PC, have been providing individuals and businesses in the Denver Metro Area and throughout the U.S. with the highest level of legal service for their business legal issues.

To learn more about how we can assist you with your business legal needs, contact us by calling us at (303) 813-1111 or by emailing us using the contact form on this page.

From our law offices in Centennial, we serve clients throughout Colorado and the U.S.

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