Entrepreneurs know writing a business plan is essential to getting your business off to a good start. It’s a road map for your company that directs you forward. It also helps you re-center when you get off balance and reminds you of the direction you want to take.

Each element of a business plan is important. Here is a deeper look at three of those elements and how you can strengthen them.

1. Marketing and Sales

Marketing strategies are multifaceted. You’ll go through several types of ad campaigns, and some may work better than others. You may also need to adjust your advertising to suit your target market or have separate campaigns for different demographics.

A rule of thumb is to spend between 5% and 10% of revenue on advertising. Traditional methods such as television, radio, billboards and newspaper advertising are excellent avenues to pursue. To stay competitive, you also need to include social media. With most consumers using social media to shop, you have a range of opportunities to reach people there. 

Many companies use sponsored or paid ads to reach their target market on social media. It’s a good way to inform consumers in your niche and target your products to them. Organic posts have some reach, but with algorithm changes, they often get drowned out by other companies and personal posts. Paying for sponsored ads with Rho banking is convenient, and this marketing method is typically cost-effective. You can set your budget, target audience, ad placement and more according to your preferences.

2. Funding and Financial Projections

If you are appealing to investors for startup capital, this section of your business plan deserves attention your LLC business account picture must be correctly given. It is where you explain how much funding your company requires over the next five years. It also details how you will spend it.

In the funding section, you’ll need to specify what type of funding you seek — equity or debt financing or a combination — and the time length of your request. It should also include the terms you want to apply.

Give investors some information about how you plan to spend the funds. You may need it for things such as:

• Equipment
• Inventory
• Employee payroll
• Training
• Initial bill payment

Your future objectives go in this section as well. Do you plan to sell the business in 10 years or pay off your debt by the 6-year mark? Outline those strategies so that investors have the big picture.

Your financial projections give investors the reassurance your company is stable. Include past and current balance sheets and income statements if you’ve already been operating for a while. Detail your projections for the next several years and demonstrate how they match your funding requests.

3. Organization and Management

Whether you’re a solo entrepreneur or have several employees, it’s vital to outline your organizational plan. Show the employee hierarchy, outlining how each key person is qualified to build success in your company. You can use an organizational chart if necessary.

This section also describes the legal structure of your business. You can form a corporation, LLC, sole proprietorship, or a limited or general partnership. The structure you choose depends on your business size and type. It may also depend on how many people you run the company with.

Some factors to consider as you choose your structure include:

• Whether you want to separate your personal and business assets
• How many partners are in the company
• How much liability partners have
• Whether you want shareholders

Your company’s legal structure affects how you pay taxes, how much paperwork you file, your personal liability, and how you can fund your company. It’s essential to look at all the possibilities before choosing your structure.

No matter your company’s size, it’s good to give your business plan the attention it deserves. A deep dive into your marketing, finance and structure can help you flesh out the details and ensure you’ve thought of everything before you make decisions.