Category: Business Plan

Components of a Business Plan

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Business plan is needed to any new business venture to ensure that your business will achieve your business goals. It helps through your business and keeps you on track. A business plan should be properly outline and consider all the necessary things so you don’t have to rush into anything.

The right components for a business plan are all depends on your purpose. Like for example, if the reader of your business plan is an investor, your business plan should be more detailed because your potential investor may not be familiar with your industry so it is essential to clearly explain your concept and your goals. But if your business plan is just for your business partner, it does need to be details but still it is necessary to provide your goals and how to achieve these goals.

parts business plan

The following are some of the components of a Business Plan

  • Mission Statement
  • Company’s Description and Products or Services
  • Market Analysis which include the competitors and prospective clients
  • Management Team Description such as the staff’s trainings and experiences
  • Methods or Procedures to market the products or services
  • Company’s strength and weaknesses, opportunities and threat
  • Cash flow statement
  • Revenue projection
  • Summary and Conclusion

Business Plan Benefits

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Some thought that writing a business plan is a waste of time but it has a lot of benefits. But there are numerous advantages and benefits of writing a business plan. It helps to identify the potential problems and opportunities the business might have. Also, your business plan can be shared to your potential partners as well to your advisers and can be a source of funding.

Business plan will have impact on how your business will works throughout its life. The components of business plan includes the business name, mission statement, product or service details, business vision, marketing strategies, financial plan as well as contingency plan. Make sure to use a simple and concise language which relevant to the field only when necessary so it’s easier for others to read. You don’t need to write a formal business plan to reap the benefits but think the business plan as a list of methods and objectives to achieve your business goal.

Your business plan is a written document which describes your business together with its objectives and strategies you have.

To summarize, a business plan has the following benefits:

  • Clearly define your business objectives
  • Helps to get advice from entrepreneurs
  • Make it easier to ensure that all aspects are in track
  • Know exactly your financial planning as well as source of funding
  • Plan the growth of your business as well as the capital requirements
  • Identify the weak areas of your business as well as the strengths

Business Report Introduction

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Reduction of Mercaptain Sulfur in JPA Jet Fuel Blend Stocks

Development of new jet engines by the Army and Navy has opened a new market for jet fuels meeting Philippine Government JP4 specifications.  Recent trial runs at the Oiltown refinery have shown that a profitable JP4 fuel can be manufactured there.  However, this fuel fails to meet specifications covering the mercaptan sulfur (RSH) content and must be treated for removal of the mercaptans  Government specifications limit the RSH level to 10 ppm.

The removal of RSH is accomplished commercially by two general methods: extraction or conversion to a disulfide compound (RSSR).  The extraction method removes RSH molecules from the fuel by contact with a chemical of high RSH solubility.  The conversion method employs an oxidation-reduction reduction which converts RSH to a very stable and odorless disulfide.  The degree of reduction in both methods depends on the temperature, strength of treating solution, contact line, and presence of a catalyst.

When treating jet fuel of this kind, processors have encountered side reactions which affect fuel properties other than RSH levels.  Corrosives and smoke are most frequent.  Untreated stocks, however, barely meet Government specifications.

Before undertaking evaluation of processes for reduction recaptans, Communication Research Co. conducted an extensive literature search and also interviewed processors who have been working with JP4 fuels.  On the basis of the information thus accumulated, the research program concentrated on the five processes most commonly acceptable in the industry.  Laboratory investigation began on 3 October 1978 and the entire program was completed on 1 April 1979.

Complete details of procedure, results, and analysis are reported below for each of the four treatments tested.

Caustic and Potassium Cresolate

Process Description

Alkalies remove the acidic mercaptan sulfur from petroleum by forming a water soluble salt.  The degree of removal depend on a chemical equilibrium determined by type of mercaptan, type and strength of alkali, catalyst present, temperature, and contact time.  In continuous refinery processing, the alkali is introduced downstream of a mixing chamber.  After the mixing process, a settling tank is used to permit the treating solutions settle out by gravity.

Elements of a Business Plan

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The following are elements of a good business plan:

  1. Executive Summary. It should be short and clear. Try to keep it in one page or half page. It should contain the synopsis of your entire business plan such as the business concept or idea, financial status, business position and business achievements.
  2. Company Description. It states the name of the company as webusiness planll as the legal status and organization structure. It also describes the company’s mission statement.
  3. Business Description. It should provide information about the industry whether a product or service. Describe the product or services you want to market and give an idea to make a profit using the product or services.
  4. Market Strategies. It includes market analysis such as defining the target market as well as the pricing, distributing and promotional strategies. It describes here the marketing plan.
  5. Operation Plans. Details the location, facilities and equipment as well as the tracking of inventory.
  6. Management Plans. Includes the quantity and quality of people within the organization to determine the success of the business. It indicates the qualification and responsibilities of each member of the organization.
  7. Financial Plans. It includes the income statement, cash flow projections, and balance sheet. In making financial projections, explain assumptions to know the figures used.

Business Plan Components

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Business plan is compose of executive summary, company analysis, industry analysis, customer analysis, and customer analysis, competition analysis, marketing plan, management plan, financial plan, operation and development plan.

Executive summary – it contains precise synopsis of the business plan. It should be easy to read and no longer than 2 to 4 pages. Executive Summary should sell idea to prospective investor such as the size and scope of the market opportunity, profitability model and skills of the management team to execute the plan.

Company Analysis – it includes the planned overview of the company and explains how the company is organized such as the products and services to offers.

Industry Analysis – it asses the competitors and analyze the market research issue including the size of the target market and trends of the industry.

Customer Analysis – it involves in knowing what the customer wants. It is essential to know exactly and identify the target customer such as average income of the customer and geographically location of the customer. Also, know how its products and services satisfy their need and able to pay.

Competition Analysis – it defines the direct and indirect competitors and evaluates their strengths and weaknesses.

Marketing Plan Analysis – it contains the strategy knowing the target markets including the company’s pricing strategies, promotional strategies, branding strategies, product, and services description.

business planManagement Plan – it shows that the company has required human resources. It should have key management personnel including their background in order to make a successful business as well the boards of directors or board of advisors

Financial Plan – it involves the growth of the company’s revenue and profitability model. It also evaluates the amount of capital needed, the proposed use of these funds and the anticipated future earnings such as the projected income statements, balance sheets, and the cash flow statement.

Operation and Development Plan – it explains the functions required to run the business, milestones to be reached as well as the quality should be controlled.

How to Write a Good Business Plan

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It is essential to all business to write a business plan whether you’re starting a new business venture or applying for a business loans but also business plan is also important for running a business for reaching business goals.  A successful business man will keep their business plan handy during the course of their business and review it monthly to monitor business growths.  Business is just like human life, if you don’t have plans and goals, you will end up nothing.  Business plan is your road map for your business success because you will able to examine business development.

Here are some points in writing a good business plan.

  • Executive Summary. Outline business goals and objectives.  You will include your business strategy.
  • Company History.  Explain clearly the history or how the business starts.
  • Company Goals. Define short and long term business goals.  Also, state your primary customers.
  • Company Organization. Give details for management team such as names and backgrounds of members as well as their respective responsibilities.
  • Company service or product to be offered. Discuss your product or services to be offered and how it differs from others on the market.
  • Market Potential of services or product to be offered. Convince lenders, employees and others that your market is large and growing.
  • Marketing Strategy. Include your marketing strategy such as how to advertise your business whether online marketing or TV ads or Web ads.
  • Business Financial Projection. A three or five year financial projection is essential to include. Discuss the summary of your financial forecasts such as the spreadsheets showing formula used to reach your projections.  Also, you will need balance sheets, income statements, break-even analysis, cash flow projections, assumptions and business ratios.