an objective statement. This section spells out exactly what you’d like to accomplish, both in the near term and over the long term.

If you’re looking for a business loan or outside investment, you can use this section to explain why you have a clear need for the funds, how the financing will help your business grow, and how you plan to achieve your growth targets. The key is to provide a clear explanation of the opportunity presented and how the loan or investment will grow your company.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch the new product and how much you think sales will increase over the next three years as a result.

4. Describe your products and services

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

• An explanation of how your product or service works.
• The pricing model for your product or service.
• The typical customers you serve.
• Your supply chain and order fulfillment strategy.
• Your sales strategy.
• Your distribution strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

5. Do your market research

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section, explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

» MORE: How to write a market analysis for a business plan

6. Outline your marketing and sales plan

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

7. Perform a business financial analysis

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

You may also include metrics such as:

• Net profit margin: the percentage of revenue you keep as net income.
• Current ratio: the measurement of your liquidity and ability to repay debts.
• Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.