- Published: October 31, 2021
- Updated: October 31, 2021
- University / College: The Ohio State University
- Language: English
- Downloads: 33
Essential elements of writing a good business planWhen writing a business plan remember that “Form follows function”, so your plan has to fit your exact business needs. The emphasis should change depending on whether it’s a plan for starting a company, raising investment money, supporting a business loan or managing an existing business. In general the following sections are essential for a complete business plan. Others may recommend less but the contents are essentially the same.
1. Executive SummaryThe executive summary gives the outline of the plan’s key sections like your company’s mission and vision, brand profile, target markets, product and services, competition, marketing strategy and financial aspects. Your executive summary will determine if your business plan will be read or tossed away in the trash pin.2. Company Description Provide the profile of your company, its history, its drivers, what it does and how it operates. Give the company’s mission being brief and concise.
3. Target MarketIdentify the market for the brands and products your company intends to make. Answer the following questions: Who are your customers? What value you offer to them? How are you going to help them achieve such value? 4. The CompetitionAnother important element of a good business plan is the competition analysis. Identify the competition of the business.
Use SWOT, PESTEL, PORTER FIVE FORCES etc. to analyze the market. Identify primary and secondary competitors; compare the value propositions of your company to other companies and list its competitive advantages and disadvantages.5.
Marketing StrategiesYour Marketing strategy is another component of a business plan that addresses the five P’s of marketing; product, price, person, place and promotion. You need to outline an effective marketing strategy.6.
Process and OperationsDescribe the overall work flow of the business without details.7. Management and Organizational Structure Identify the organizational structure of the company including key managers. This part is very important especially if you are seeking finance because investors will be interested in the background of the company’s management team and their corresponding salary scale.8. Strategic plansStrategic long term plans is another critical component of a business plan. It shows in detail, the long term plans of your company by considering its future profits and growth. It provides a timetable for these plans as well as the sensitivity or risk factors.
This part of the plan provides visual graphs of what the business will be like one, three, five or more years from now.9. Financial AspectThe last element of a business plan is the financials. This part provides a view of the financial projections of the company for the first few years of the business. It includes costs, income statements, cash flow, break-even analysis, and anticipated profits