entrepreneur business plan questions

Entrepreneur Business Plan Questions and Answers

The Entrepreneur Business Plan: Questions and Answers

You may know your business concept inside and out, but taking your idea from notepad scribbles to reality isn’t easy. Many entrepreneurs get so caught up in how to start the process that the business itself never materializes. Fortunately, we’ve made this list of entrepreneur business plan questions so small business owners can hit the ground running.

TABLE OF CONTENTS

The Entrepreneur’s Business Plan: Questions to Ask

Creating a business plan helps you to refine incomplete ideas, identify areas not yet considered, create a map so you can take steps in the right order, and establish your creditworthiness to banks and investors. 

It’s ok if you don’t know the answers to all of these questions right now. The important point here is that you’re willing to go through the process and the hard work to make your business successful.

1. Executive Summary

An executive summary is a brief snapshot of your business plan as a whole and touches on your company’s profile and goals. You must describe why your company is unique and has what it takes to succeed in the market.

  • What is your business idea or concept?
  • Are you the first in the market?
  • What problem are you solving?
  • What is your unique value proposition?
  • What are your goals and objectives?

Pro Tip: End at the beginning. This part is easier to write after you have finalized all the details of your plan. Once you finish your plan, go back to the beginning and write the summary in a way that captures your reader’s interest immediately.

2. Business Description

The company description is the backbone of your business plan. It tells stakeholders what you do, the markets you serve, and what sets you apart from others. You should define your service offerings, the history of your field, objectives, and any other elements that may add to your success and the ownership of your company. 

  • What is your business name and legal structure (e.g., LLC, corporation)?
  • How was your company formed?
  • What products or services will you offer?
  • Who is your target market?
  • What is your competitive advantage?
  • Do you own any patents or other proprietary intellectual property?
  • What are your key milestones to date?

3. Market Analysis

Before launching your business, it’s vital that you research the industry, market, and your competitors. Provide a Market Overview where you can discuss the characteristics of your market, current leaders, and comprehensive customer analysis.

  • What is the size of your target market?
  • Who are your direct competitors, and what are their strengths and weaknesses?
  • What are your competitors doing right, and how can you improve upon it?
  • What trends are influencing your market?
  • How will you distinguish yourself from companies filling the same need?
  • Is your market oversaturated or open to penetration? (Both types present opportunities for success if correctly planned.)

4. Organization and Management

Investors are attracted to businesses that offer transparency and stability. Provide a hierarchy of how your company is organized and each executive’s duties.

  • Who are the founders and key team members?
  • What is the organizational structure of your business?
  • What are the responsibilities of each team member?
  • Who will make day-to-day decisions?
  • Who’s on your money team? 
  • How will internal disputes be resolved to minimize operational disruption? 
  • Does your business succession plan ensure a smooth transition?

Pro Tip: If you’re not used to writing business plans, problems could be lurking in your corporate documents. Rushing through these forms now can cause costly problems later, so it’s best to have a trusted business lawyer review them to detect any red flags.

5. Service or Product

Every business has something for sale to customers or clients. Use this area to describe what you’re offering and how it will benefit potential buyers.

  • What specific services/products will you offer?
  • What are the features and benefits of your products/services?
  • How will you solve customers’ problems in a way similar services can’t?
  • Are there any intellectual property considerations?
  • What is your pricing strategy?
  • What makes your offerings unique? 
  • What makes YOU unique?

6. Sales and Marketing

Often overlooked, marketing is the bloodline of your company. Marketing is everywhere – on social media, flyers, business cards, your website. Good marketing may consume a significant part of your budget, especially in the beginning. Your personal brand shows clients who you are, so it needs to make an impact. Use this section to explain your general sales strategy and decide the best ways to reach your target market. 

  • Who is your ideal client? (PRO TIP: The sooner you identify this person, the more quickly you’ll tailor your marketing message.)
  • Is your marketing designed to reach your ideal client?
  • Will your website design appeal to your target customer?
  • Does your branding speak to your ideal client?
  • Is your target customer the one doing the buying?
  • How will you track your marketing success?
  • What sales channels will you use (e.g., online, retail, wholesale)?

7. Funding Request

Omissions or miscalculations in startup capital can hamstring your funding requests. If you’re seeking investors for your business, include an accurate amount and how the funds will be used for each expenditure category. 

Be smart about your needs, but be realistic. For example, if you’re looking for an equity investor, writing a line item for a six-figure first-year salary is not the best idea. [Yes, I actually saw a business plan that had this.]

  • How much funding do you need?
  • How will you use it?
  • What loan terms are you looking for?
  • What is your expected return on investment for investors?

8. Financial Projections

Your investors will want to know how quickly (and how much) their faith in you will be rewarded. Calculate accurate financial projections to reinforce your funding request. Banks or investors will want you to provide financial records to back up your claims, so be honest about your expenses, overhead, and profits.

  • What are your projected profits and expenses for the next 3-5 years?
  • What are your break-even analysis and profitability forecast?
  • What key assumptions have you made in your financial projections?

Ask a Corporate Lawyer to Review Your Business Plan

You’ve heard it before: an entrepreneur works 80 hours a week to avoid working 40. Most entrepreneurs I’ve met realize that sacrificing vacations or nights out in the short term makes for an abundant future. However, you’ll need sage advice and a steady hand on the wheel to turn your vision into reality.​At Yolofsky Law, we provide the legal guidance and corporate documents you need to build your business on a strong foundation. Whether you’re knee-deep in your business or just starting out, we’ll help you get your ducks in a row. Email us at [email protected] today or schedule a 15-minute call to get the answers you’ve been looking for.