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A business plan is an outline of how you will manage your business every day to reach long-term objectives. It’s also essential for the attraction of investors and customers from outside. It’s also a must for anyone who wishes to start a new venture. It’s no wonder so many studies reveal the disastrous failure rates of businesses that don’t have a well thought out and executed plan.

Although every business plan will be different dependent on the needs of the company and its specific goals, there are some best practices that should be followed. The first step is to identify the audience that the plan is for. This will allow you to determine the level and language of the document. This will also assist you in deciding which sections to include and which ones to remove.

The next section should give an overview of the business’s history. This can be accomplished by the description of the company, which focuses on the distinctive characteristics and features of the business. This could include the legal structure of the company for instance, whether it is a sole proprietorship, LLC, partnership, corporation and the number of employees.

The next section is an extensive analysis of the market. This includes the audience the size of the audience, as well as the competitive landscape. It is also important to highlight any unique benefits that the business may have such as a specific industry knowledge or a leadership team with extensive experience.

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