When dealing with bankers and investors, there’s a good chance that they don’t know much about the industry that your business will be competing in. Even if they do, assume that they don’t and write a summary of the industry as a whole. Include industry opportunities, recent changes, industry leaders, and what the leaders of the industry did to get where they are today.
Market Analysis
More specific than the industrial analysis, the market analysis talks about what’s going on in the industry specific to the area where you’ll be working. Include market opportunities, an overview of the competition, how you’re different from the competition, and what plans you have to succeed against them.
Business Description
Once you’ve given an overview of both your industry as a whole and the local market, it’s time to start getting specific. Describe your business, who owns (or will own) it, how long you’ve been in business (or whether you’re starting the business from the ground floor), the short-term and long-term goals that you have for the business, and exactly what you need the money for (expansion, marketing, debt-reduction, equipment, start-up costs, etc.)
Competition Description
Going back to the competition mentioned in the market analysis, give a basic description of how your business is better than they are. List the strengths of your competition as well as their weaknesses, and tell why you think you’ll be able to succeed against them.
Marketing Plan
This is where you start to show how you plan on making the lenders or investors their money back. Describe what plans you have for marketing your products or services, who you are likely to have as customers (and already have, if writing the plan for an existing company), why new customers are likely to buy from you, the pricing strategy that you plan to use, the distribution you use for any products that you make, and the general plans that you have for promoting your business.