Tag: parts of 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 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.