Writing a business plan is one of the most critical phases in starting a business. A business plan serves as a guide on how will the business operate and how will it succeed despite tremendous competition. The article shows how to write a business plan for beginners. The following are five of the most important parts that a business plan must contain.
The executive summary contains the description of the company including the names of its owners and founders. Business planners also include the goals, objectives and the mission as well as vision statements of the company in the executive summary. The executive summary is often considered as the introduction to the company. It describes in detail the nature of business and how the company serves as well as profits from its target market.
Market research and analysis
Market research and analysis are just some of the most critical business planning tools and data that should be written in a business plan. The market research and analysis portion should reveal data regarding the target market, the size of the industry, the potential for growth within the industry and the leading products or services that are being offered by competitors. The market research and analysis portion should also contain data regarding the last recent years of the industry and its leading players.
Organisational and management hierarchy
When you will create your own business plan, it is necessary to include the organisational and management hierarchy within the business. It is essential that the specific roles, duties and jurisdictions of each officer or employee in the business are well explained in order to avoid any internal conflicts, which can negatively impact business operations.
The sales strategy must detail how the business will market its products and services. Market penetration and product launching techniques should also be discussed within the sales strategy section of a standard business plan. Pricing and other market approach strategies should also be detailed in this section.
Financial projections and funding
Under the financial projections and funding section of a business plan, the projected financial figures such as projected sales, return on investment and break even time-line and the sources of initial capital as well as additional investments will be discussed in detail. The financial projections and funding should be presented in an excellent manner, as this part of the business plan can help to attract potential investors and business partners.