1- This is an orderly and logical analysis of the business, which includes a clear understanding of who is the customer, definition of the product or service, organizational structure, a marketing plan, a financial plan, all known risks and its mitigating plans.
2 – The business plan is composed of: Executive summary – Description of the idea and the activities of the company. Name and type of legal entity – The organization or business can have a corporate name or a commercial name (dba), and it must be a type of legal entity such as single owner, partnership, Corporation (CORP) or limited liability company (LLC).
2 – Registrations, licenses and permits – The business must be registered and comply with requirements of the City, County, State and Federal agencies. Definition of the organization and organizational chart – This is a detailed description of the company’s operation, the organizational structure, distribution and sales process, etc.
3 – Marketing plan – A detailed description of the product or service, and the target customer. It also includes a description of the owner’s industry knowledge, general information about research and specifics of the target market, marketing research test results, and information about competitors and their products.
4 – Financial plan – This is a detailed analysis of the costs, expenditures, sources of funds including the capital, bank and family loans, and an operating budget. The budget includes the analysis of the flow of monetary funds from the first to the fifth year of operation.

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