The purpose of a business plan is to get a roadmap to achieve the goals which were set in the business by determining the tasks. Regardless of the size of a business, the business plan helps to make better decisions. Either they are related to financial aspects or to maximizing resources. A business plan points out the hurdles to be faced in future so that one can make necessary decisions to avoid them. It also helps to gather information about industry and market.
The business plan has some elements which are:
Executive Summary of a business plan is one or two-page summary containing your entire business plan in few words.
In company description, the history of the company, its mission, and position in the market and the products and services, company offer especially those products which are milestones for the company. Ownership and legal status must be mention and also mention if there is any partnership with the company.
This section of business plan serves as a window into the industry. Mention the size of the industry and its growth. This part tells the state of the industry and market structure including the rate and sale projections and the vulnerability of the market. And the key success factors of the products. Also mention industry trends (like a business, economic, political trends) and long-term prospects of the industry.
This portion involves the market segmentation and selection of target market i.e. what are the different segments of the market which will purchase the products and will also help in estimating the return of the expenditures. By conducting different surveys the consumer behavior can be predicted (it can be given in form of pie charts), that whether it will be positive or negative and encouraging or not. It also includes short discussion of direct and indirect competitors
Marketing Plan tells that how a company will promote and advertise its products. To become a profitable company the price and distribution strategies must be set in a good way.
It includes the brief introduction of the management team, the founders of the company, the board of directors, and Board of advisors and employees. Their introduction includes who they are, their designation, duties, education, skills, and experience in the field. The company structure can be done in form of organization charts or in hierarchical form.
The operational plan describes the workshops and tutorials organized by the company, member tours and operational hours. Also the location of the company, facilities provided by the company and equipment used in the company.
The product design and development includes the challenges the company may face and the short description about the copyrights that the company has achieved for their work, logo or tagline.
Final Projection includes the list of the balance sheet, Income statement and cash flow statement having a list of all the prices and charges.
Thus a good business plan is written in a way that it will describe how to fill voids in the market to attract the customers and become a profitable company.
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