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5 Essential Contents Of Business Plans

There is no fixed  content for a business plan. Rather, the content and format of the business plan is determined by the goals of the entrepreneur and the intended audience. For example, the business plan developed to guide ones journey in the business world (self-directed) is somewhat different from the plan required by banks or other financiers.  Regardless, a business plan should contain reasonable information needed to decide whether or not to pursue the business idea. Nevertheless, common factors in business plans include:

1. Executive summary The executive summary summarizes the key points of the business plan. It defines decision to be made and the reasons for approval. It involves:

  • Description of Business
  • Product Summary
  • Business strategy
  • Financial Summary

For a new venture, the executive summary might contain:

  • Company information: name of company, proposed legal structure, current legal structure, minority and majority investors.
  • Amount of investment required
  • Expected terminal value
  • Description of market opportunity
  • Justified reasons that the market opportunity can be exploited

2. Marketing & Sales  Describe the business idea, how it will be marketed and sold. This section states for example the identified needs, customers, products or services to satisfy the needs, how to reach the customers, etc. It contains:

  • SWOT Analysis
  • Competitive Analysis
  • Target Customer Groups and Market Dynamics
  • Customer Demographics
  • Sales Strategy
  • Pricing and Positioning
  • In-depth Marketing Plan
  • Advertising and Promotion
  • Market Trends
  • Market Estimates

3. Business Structure

  • Company Ownership
  • Management Team
  • Business Location
  • Business Organization

4. Objectives & Plans

  • Business Vision and Mission
  • Next 12 Month's Action Plans
  • Resource & Budget Allocation

5. The Financial Plans

  • Staffing and Employees
  • Start-up Budget
  • Forecast Profit & Loss Account
  • Forecast Balance Sheet
  • Forecast Cash flow
  • Sales & Profit Forecasts
  • Sales Charts & Graphs
Have a nice day.

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