Components of a business plan

A business plan takes many forms, depending on ventures. Most of them, however, include the sections below:

Executive summary

This is the 5-minute elevator pitch. It includes company background, table of contents, financial highlights and competitive advantages. Here, it is easier to start with the detailed sections and later extract the cream for the executive summary. That should only take a few pages

Business structure and description

Here you explain why you are in business and whatever you are selling. If it is products, you should describe the manufacturing process, how you handle fulfillment and inventory, availability of materials, etc. If you deal with the provision of services, describe the services and value proposition to the customers. Other details like administrative issues strategic relationships and the company’s legal structure should also be included.

Market strategies and research

Spell out the market analysis and describe the marketing strategy, milestones, and deadlines. In the event that you cannot provide a lot of analyzed data then you can provide testimonials from the existing customers.

Personnel and management

Provide your managers and company executives’ bios explaining how their expertise will help in the achieving of business goals. Investors usually evaluate risk which means that a team with good enough experience lowers perceived risk.

Financial documents

Here, you provide numbers backing up all that has been described in the marketing and organizational sections. Include balance sheet, projections of loss and profit statements as well as cash flow statements for the few incoming years. These are forward-looking as opposed to current outputs.

Share

Add Your Comments

Your email address will not be published. Required fields are marked *


WhatsApp chat