If you’re preparing to start a new company or reinvent an existing one, you should write a business plan. This guideline gives you a solid foundation to work off of that you can share with partners, employees, and accountants as you grow. To ensure you have a clear vision and action plan, here are crucial parts of a business plan to keep in mind.

What Every Business Plan Needs

1. Organization & Management Hierarchy

A chain of command organizes operations and lets you know who you need to hire. Assess the immediate departments you’ll require, such as human resources, sales, general and specialized management, and accounting. Add profiles of existing team members, then include outside parties, such as advisors, lawyers, third-party accountants, and owners. A comprehensive overview of your team will also let potential investors know who you count on and in what ways you expect to grow.

2. Market and Competition Insight

Identify your competition and market demand. See what competitors are doing, and pinpoint their strengths and weaknesses. Then you can create an approach to surpass them while making sure there is a large enough client base to keep you in business.

3. Financial Planning

Work with an accountant to figure out financial projections, which you’ll need to secure investors. Create a sales forecast for the first three years and an expenses budget, in which you should include estimated costs of operation, supplies, salary, and manufacturing, if applicable. List assets and liabilities as well so you can create an accurate net worth of the company. Once all of this is in place, identify a breakeven point so you know what you need to do to start turning a profit.

When it comes to business planning, you’ll need the assistance of a professional accountant. Those in Kailua-Kona, HI, turn to Daren Katayama, CPA, for all their needs. From tax law and individual IRS audits to larger bookkeeping, the accounting team takes a personalized approach to remove the complexities of finances, for which they’ve earned and maintained an A+ rating from the Better Business Bureau®. Call (808) 329-6635 to schedule a consultation, and visit their website to further explore their services.