How to write a business plan?
Business plan writing is not rocket science. All you need to do is to make sure that it has those ten components that a good business plan features. Those ten components are:
1. Executive Summary
2. Company Description
3. Industry Analysis
4. Target Customers
5. Competitor Analysis
6. Marketing Plan
7. Operational Plan
8. Management Strength
9. Financial Plan
10. Appendix
Executive Summary:
It provides a summary of the entire business plan and sheds lights on key points that are raised by investors. Normally, it takes one page but depending on the size of business plan, it can reach up to 4 pages.
Company Description:
This section provides company overview and illustrates how the business was formed, its goal and vision of the owners.
Industry Analysis:
It details the characteristics of the industry in which the business operates. It provides information to investors, such as:
• Size of the market
• Target market segments
• Trends of market, demand, growth and potential
• Analysis of key competitors
Target Customers:
This section provides details of customer segments in which the company is serving. Needs of customers are highlighted, and then products and services are presented to satisfy those needs.
Competitor Analysis:
This section highlights key players of the market that are potential competitors of the business. Analyses of competitors are presented here to describe how they are likely to influence the company’s operations.
Marketing Plan:
Marketing plan defines strategies for entering company’s products and service in the markets. Strategies vary as per the requirements and situation of business.
Operational Plan:
This section provides information on how the business will operate internally in supply, production, marketing and distribution.
Management Strength:
This is one of the most important sections of business plan from the investors’ point of view, as they are interested in knowing expertise and skills of the management to judge their potential and capability.
Financial Plan:
As the heading says, it deals with planning and development of company’s revenue model. It provides information such as balance sheet, income and cash flow statements.
Appendix:
Finally, appendix is included to provide information of statistical calculations, projections and sources from where research data has been collected.
