Starting a business without a business plan is like going on a journey without direction, differently you don’t know where you are heading too.
A business plan is a road map of any business. To succeed in any kind of business in this present day, then you need a well-structured business plan to back up your ideas.
Since you now understand why you require a business plan for your business and you have invested so much energy getting all your data to create one, its an ideal opportunity to move up your sleeves and get everything down on paper.
Lets now analyze the component that makes up a good and comprehensive business plan
Component of a business plan
1. An Executive Summary
After developing your title page the table of content then maybe an introduction. The executive summary should now follow.
This is the summary that will tell the reader or an investor what is the content of your business plan.
Building blocks of an executive summary
- Its shows highlight from each of the rest of the document from key features to the business opportunity through to the elements of the financial forecast.
- The purpose of the executive summary is to explain the basics of your business in a way that both informs and interest the reader or the investor.
2. Business and product description
- Start with an overview of your business.
- The type of business and the sector.
- When you started or intend to start, the progress and investment you have made.
- Your current legal structure.
- Your vision for the business.
- Give information on all various market within the industry.
The product or services
Describe your product or service as simple as possible, pointing out ;
- What makes it different.
- What benefits its offer.
- Why customer will buy from you.
- How you plan to develop your product or services.
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3. Marketing plan
This is the marketing research carried out for the business. Key areas to cover;
- Your market; size historical data about its development and key current issues.
- Your target customer base: who they are and how you know they will be interested in your product or services.
- Analyze your competitors: who they are, how they work and the share of the market they hold The future anticipated changes in the market and how you expect your business and your competitors to reach them.
4. Management or Team skills
management team describes the responsibilities of the team, task assigned and their skills.
The business plan needs to set out your own background and skills and structure. The skills of management team and staff.
It should identify the strengths of your team and your plans to deal with any obvious weakness.
the operational plan is designed to describe how the business functions on a daily basis. Its show the logistics and production process. Producing your goods and services;
- Who will be your suppliers?
- What are the advantages and disadvantages of your current location?
- Do you need your own production facilities or would prefer to outsource.
- What is the capacity compared with existing and forecasted demand?
- Do you own or rent the space.
5. Financial forecast
A financial forecast is always the last on the list of any business plan and also remain the most important aspect to pay more attention too. This where we know if we are going to make a profit or not.
related post: how to build finance for your business
What your sales forecast should include;
- Sales forecast: the amount of money you are expected to make from products and services
- Cash flow statement: your cash balance and monthly cash flow patterns for at least the first 12 to 18 months this just to show if the business will survive or not.
- Profit and loss forecast: a statement of the trading position on the business: the level of profit you expected to make, given your projected sales and cost of producing goods or services.
Am sure you most have pick one or two information that will help you create your business plan. You can use the comment box or send us a mail if you need more details. Or if you want our team to help develop a bankable business plan, just contact us.