Business plan structure definition english
Action Plan To support your business vision, you must have a powerful action plan. While it's a good idea to give as much detail as possible, it's also important to be sure the plan is concise so the reader will want to get to the end.
The executive summary is an overview of the entire business plan and will either capture the readers attention or make them lose interest before reading any further.
What is the purpose of a business plan
Who will run the company and what makes them qualified to do so? Generally, a business plan has the following components: Title Page and Contents A business plan should be presented in a binder with a cover listing the name of the business, the name s of the principal s , address, phone number, e-mail and website addresses, and the date. What are the risks and threats confronting the business, and what can be done to mitigate them? In startups newly formed companies , it is common to find gaps in the organizational structure for positions that are yet to be filled. Marketing strategy: This area describes how the company will attract and keep its customer base and how it intends to reach the consumer. The same statements should be prepared with forecasted data for the next five years. Below are some of the common and most important parts of a business plan. If your business plan is for an existing business, the balance sheet from your last reporting period should be included.
Then say whether the business is a sole proprietorship, partnership, C or Sub chapter S corporation. It is a scorecard on the financial performance of your business that reflects when sales are made and when expenses are incurred.
This will help you determine your distinct competitive advantage.
What is a business plan definition
Financial Components of Your Business Plan After defining the product, market and operations, the next area to turn your attention to are the three financial statements that form the backbone of your business plan: the income statement, cash flow statement, and balance sheet. In such situations, one may need to develop two versions of the business plan: a stripped-down plan that can be used to develop a relationship and a detailed plan that is only shown when investors have sufficient interest and trust to sign a Non-disclosure agreement. You Also Might Like Whoever reads your business plan will want to know what suppliers or experts you've spoken to about your business and their response to your idea. Balance sheets are used to calculate the net worth of a business or individual by measuring assets against liabilities. Special Considerations Financial Projections A complete business plan must include a set of financial projections for the business. Alternatively, they may require each party receiving the business plan to sign a contract accepting special clauses and conditions. It is a scorecard on the financial performance of your business that reflects when sales are made and when expenses are incurred. In fact, it is common practice to hire a professional editor to proofread and strengthen your writing. Each should be written by people who are fully aware of the contents and intricacies of the other areas of the plan so that the different sections are all integrated. One last thing to know before you go. Financial Plan The financial plan is the final and most important section of a business plan. Cost-plus pricing is used mainly by manufacturers to assure that all costs, both fixed and variable, are covered and the desired profit percentage is attained. Day-to-day Business Operations In this section, you must be quite detailed in describing your day-to-day business operations which refers to how you will run your business functions on a daily basis.
Description of the Business The business description usually begins with a short explanation of the industry. Financials Both past financial data as well as prospective financial data will be required by potential lenders.
A business plan is not meant to be a static document. The operating plan describes your facilities, equipment, inventory, and supply requirements. A business plan won't automatically make you a success, but it will help you avoid some common causes of business failure, such as under-capitalization or lack of an adequate market.
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