Executive summary
The Executive Summary is a brief overview of your business plan. It should capture the essence of your business, your objectives, and how you plan to achieve them. Investors and lenders often review this section first, so it’s crucial to make a strong impression.
Key Elements:
- Business idea: clearly describe what your business does. What product or service are you offering?
- Target market: who is your target audience? Why is there a need for your business in the market?
- Unique selling proposition (USP): what makes your business stand out from the competition? How does your military experience give you an edge?
- Financial Highlights: provide a snapshot of your financial projections, including expected revenue, profit, and funding needs.
- Goals: outline your short-term and long-term business objectives.
Tip: Keep it concise, no longer than two pages. You can expand on the details in the following sections.
Business Description
In this section, provide a deeper dive into your business idea. Explain the problem your business solves and the opportunities it creates. As a veteran entrepreneur, highlight how your military training has equipped you with skills like leadership, discipline, and strategic thinking, which will benefit your business.
- Business Model: explain how your business will make money. Are you selling products directly to consumers (B2C), providing services to other businesses (B2B), or offering a subscription-based service?
- Legal Structure: specify your business’s legal structure—sole trader, partnership, or limited company. Explain why you chose this structure.
- Vision and Mission: what is your long-term vision for the business, and what mission drives your daily operations? This is where you can infuse your personal values, which may be influenced by your military background.
Market Research and Analysis
Market Research and Analysis
Conducting thorough market research is critical to understanding your target audience and competitors. This section should demonstrate that you’ve done your homework and have a clear strategy for positioning your business in the market.
- Target Market: define your ideal customers. What are their demographics (age, gender, location, etc.)? What are their needs and pain points, and how does your business meet them?
- Market Size: estimate the size of your target market and its growth potential. Use data from industry reports, government publications, and market research firms.
- Competitive Analysis: identify your main competitors and assess their strengths and weaknesses. What gaps in the market can your business fill? How will you differentiate yourself?
Tip: Include any veteran-specific market opportunities, such as services tailored to veterans or government contracts that favour veteran-owned businesses.
Marketing and Sales Strategy
Your marketing and sales strategy outlines how you plan to attract and retain customers. As a veteran entrepreneur, consider how your network and military connections could play a role in building brand awareness and driving sales.
- Marketing Channels: identify the channels you’ll use to promote your business—social media, email marketing, paid advertising, or word-of-mouth. Describe how you’ll leverage these channels to reach your target audience.
- Sales Strategy: explain how you plan to sell your product or service. Will you have an online store, a physical location, or both? What is your pricing strategy?
- Brand Positioning: how do you want your brand to be perceived in the market? Positioning your business as a veteran-owned enterprise can also appeal to a patriotic customer base or those who value military experience.
Operations Plan
Your Operations Plan details how you will run the day-to-day aspects of your business. This section should cover everything from production to staffing, and it should showcase your ability to organise and lead—skills you likely honed during your military service.
- Production/Service Delivery: explain how you will create or deliver your product or service. What suppliers, manufacturers, or service providers will you work with?
- Location: where will your business operate? Will it be based online, or do you need physical premises?
- Staffing: outline the key roles in your business. Will you hire staff, or will you manage the business yourself in the early stages? Include any plans to hire veterans, which could be a part of your mission and brand.
- Technology: identify the technology or software you will use to streamline operations. This could include accounting software, CRM systems, or e-commerce platforms.
Financial Plan
The Financial Plan is one of the most critical sections of your business plan, especially if you’re seeking funding. It should include detailed financial projections that show your business’s potential for profitability and growth.
- Startup Costs: provide a breakdown of the initial costs of starting your business. This could include equipment, rent, inventory, and marketing expenses.
- Revenue Projections: estimate your expected revenue for the first three to five years. Be realistic and provide explanations for how you arrived at these figures.
- Profit and Loss Statement: create a projected profit and loss (P&L) statement that outlines your expected income and expenses over time.
- Cash Flow Forecast: cash flow is the lifeblood of any business. Include a cash flow forecast to show how much money you expect to flow in and out of your business on a monthly basis.
- Break-Even Analysis: calculate how long it will take for your business to cover its costs and begin turning a profit.
Tip: If you're a veteran entrepreneur, consider how Finance for Forces can help you secure funding through tailored loans, grants, or investment options. Mention any other sources of funding you’re applying for, such as government schemes or personal savings.
Risk Assessment and Mitigation
No business is without risk, and investors will want to know how you plan to manage challenges. Your military experience may give you an edge in risk management, as it’s likely you’ve been trained to assess and respond to potential threats effectively.
- Identify Risks: list the potential risks your business may face. These could include market competition, supply chain disruptions, or financial challenges.
- Mitigation Strategies: explain how you plan to mitigate these risks. This could involve contingency plans, insurance, or diversifying your product or service offerings.
Appendix
Finally, include any supporting documents that add credibility to your business plan. This could include:
- Resumes of key team members.
- Product photos or design mockups.
- Market research data or surveys.
- Detailed financial spreadsheets.
