Creating a business plan is an extremely critical component of any business. Not only does it help you to determine if your business is thriving, but also it opens up great possibilities to keep it on track at the very beginning. A business plan is a way to evaluate an idea. Moreover, the process of creating the plan may reveal factors that you might not take into account and might prevent you from making a bad decision.
Embedded Files
Seven Elements of a Business Plan
Executive summary: This section details the business and what it wants to accomplish. It includes the mission statement and information about the leadership, employees, operations, and location.
Company description: This overviews the business’s plan and vision. It should include the company’s name, business structure, and an overview of the target market. the company description should state whether the business is a sole proprietorship, Limited Liability Company (LLC), partnership, or corporation. It should also include a section that outlines the company’s history and evolution.
Products and services: This section details the products and services offered. It can include pricing, product lifespan, benefits, and similar products and competitors. You want to show the difference between your product or service and how it will rise above the competition. Other topics in the section can include production and manufacturing processes, research and development, company patents, and proprietary technology.
Market analysis: A business needs to understand its industry and target market. The market analysis details the competition and plans on how to differentiate. It also explains how the company fits in with the industry and details its strengths and weaknesses. This section details the target market and the expected consumer demand for the product or service. Research should also show how easy or difficult it will be to grab market shares (the percentage of total sales generated by the company that is calculated by taking the company’s sales over a period and dividing them by the industry’s total sales over the same period).
Marketing strategy: This part explains how the company plans to attract and retain customers, it outlines a clear distribution channel, and defines planned advertising and marketing strategies. It can also describe the types of media used for those strategies and campaigns.
Financials: A business plan should include a company’s financial planning and projections. For an established business, this includes financial statements, balance sheets, and other documents. New businesses can include targets and estimates for the first few years of operation. It can also outline the company’s potential investors and what financial assistance the company may need.
Budget: Every business needs a budget, so every business plan should detail staffing, development, manufacturing, and marketing costs.
Google Sites
Report abuse