A business plan is their primary and essential ingredient to their business, from the biggest companies to the small micro-enterprise entrepreneurs. It is a self-explanatory term and can be defined as a plan d for the business. You can also say a business plan is the basic principles for starting a business. They differ in formats and lengths, ranging from a lean plan containing only the essential information to the comprehensive traditional format that includes a wide range of information from plans, marketing strategies, and financial information.
According to thesisgeek.com, a good business plan should give your business a road map and provide answers to arising questions concerning the business and how it works. It should also be all-rounded in that it should accommodate both internal and external users.
Importance of a business plan
For a growing business, you will use a business plan to break down activities into small portions that can easily be managed and implemented. It is essential when raising funds for investment. It gives the investors the company’s needs and how all the projects will be executed.
For an established organization, they can use a business plan to gauge their progress and where they stand at the moment
A good business plan should be flexible and dynamic. You should not have to start from scratch if you need to add s component to your business or make a strategic change.
Elements of a business plan
There are various forms of business plans. The contents of a business plan should be geared toward meeting the needs of the business. Irrespective of the business’s size, the prospective audience, or the type of business, some elements are central to any plan. As you write your business plan, you should ensure that you include the following elements.
1. Executive Summary
An executive summary is a universal component that should be in every business plan. It serves as an introduction to your plan, and you should construct it. It should briefly provide relevant and meaningful information that includes:
- Why your organization has the best chances of meeting market needs in this field
- Why your area of specialization is best to invest in
- Why you think your company is the best to provide the expertise needed in this field
Your passion will be the key factor in constructing an executive summary that will captivate both internal and external readers.
2. Company overview
Here you provide the history and background of your organization. You should summarize the company’s bio, location, legal information, ownership, and significant accomplishments.
3. Service or product information
Here you detail the services and products your firm provides that include:
- The benefits of your services to the client
- The process of production of solutions
- Patent and copyright information to your products
- The company’s market advantages
4. Sales and marketing plans
The key points to include here are:
- How do you plan to keep your customers?
- Promotion plans
- The pricing of what you are offering
5. Financials
Any investor will be interested in your financial stability and plans. Here are what to include in your business plan:
Capital expense expectations
Cash flow statement
Balance sheet
Income statement
Financial forecast
6. Management team
You should clearly define your company’s bio by listing the management hierarchy and the key players in the organization.
Conclusion
Business plans are essential for defining success pathways for both established and growing companies. The above guide helps you develop a business plan that suits the need of your company.
