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The idea of starting your own business can be exciting and inspiring, but for most small business owners, writing an effective business plan is not considered an exciting part of starting the process; therefore, many choose not to create one or update it on a consistent basis. Traditional business plans can be very dry and uninteresting, so you are about to learn how to create an effective business plan that not only gets you excited, it will inspire you, and others, to take action. The length and details of an effective business plan will be determined by the type of business you’re creating or updating the one you currently have. The key is to create not just another business plan, but an effective business plan that inspires you, and others, to take action. First, let’s get clear on the essential components of an effective business plan: • Executive Summary • Market Analysis • Company Description • Organization & Management • Marketing & Sales Management • Service or Product Line • Funding Request • Financials • Appendix Part 1: Executive Summary The executive summary is the most important component of an effective business plan because it will be the first thing the reader sees. This is where you’ve got to grab the reader’s attention and inspire them to support your vision through your mission statement. Provide a history of your company, its current standing, and future vision. Although the executive summary should be the first component in the business plan layout, it should actually be the last component you create. Once you have completed all other components it will be easier to come back to the executive summary and nicely tie in key points. Part 2: Market Analysis This is your opportunity to shine and highlight your knowledge of the industry. This will also be where you will identify your target market and what you know about them. Take this opportunity to spotlight comprehensive market research and projected profit margins. Part 3: Company Description Keeping it brief, describe how all the elements of your business fit together. This component should include how the nature of your business makes you unique and the primary factors that will make your company a success. Be sure to clarify the marketplace need and how your company is poised for a competitive edge. Part 4: Operation and Management In this component, include your business’s organizational structure, details about ownership, and profiles of your management team, if you have one. This is also where you would include information on the board of directors or advisory board. Outline a plan to keep your staff in place by detailing salaries and benefits. A key factor in this section is to clarify what kind of incentives and bonuses will be provided to keep your staff motivated and employed. Part 5: Marketing and Sales Management Use this section to share your vision for getting and growing your customer/client base - as they will be the lifeblood of your business. Clearly define and explain a comprehensive market strategy that will be flexible to changing market needs. Part 6: Service or Product Line Here is where you will want to focus on the distinct advantage your product or service has over the competition. Emphasize the benefits to customers/clients and why they will be inclined to choose your product over the competition. Also include ideas and visions for future products and services. Be sure to carry your passionate message throughout this section and back it up with concrete data. Part 7: Funding Request A vital component to an effective business plan. Clearly define the amount of funding you are requesting and long-range strategies that could impact your ability to repay the funding. Outline best and worst case scenarios and back up your request with financial statements. Voice your vision and passion and back it up with solid financial sense. Part 8: Financials This is