A business plan is part of the management. Management is a process that consists of planning, organizing, mobilization, and control to define and achieve goals that have been determined through the utilization of human resources and other resources.
Business is hope for us, and successful in the concepts and strategies needed strong to fit our plans.
Why do I need a business plan?
Writing a busines plan is a crucial first step in your business endevor and should not be taken lightly. Depending upon the goal of your business plan determines how much effort should go into writing it.
- If you will be seeking financing from a bank or other entity, then your business plan should be done well. The business plan will be highly scrutinized by a third party.. after all, it is their money that they are deciding whether or not to lend to you. In this case the business plan should have solid numbers/projections based on industry data and it should be properly referenced.
- If you are not seeking financing, then the business plan serves as more of a roadmap for the next 6-24 months of your business. You should still have a solid plan and be able to clearly identify your target market and your anticipated sales. But, since you're not seeking outside funding, the plan is not subject to as much scrutiny as above.
Major sections of a business plan
A business plan can contain many different sections depending upon your specific business or industry. Below is a typical business plan format or the major components of a solid plan; you may even consider these the minimum necessary.
1) Executive Summary - A summary of the plan. No more than two typed pages and should be written last. Someone should be able to read this and get a good feel for the business, you, and the plan.
2) Company/Business Description - Here you will outline the goals and mission of your business, the history of the business, and any other pertinent information about your proposed business activities.
3) Product or Service Description - Outline your services or products that you intend to sell. This is where you clearly state how you will monetize your business.
4) Market Analysis - Demonstrate your understanding of the market in which you are about to enter. Write about your target market and your competition.
Strategy and Implemention - Discuss your strategy for the implemention of your marketing efforts and how you will get your products/services to your customers.
Management Team - Discuss the key members of your management team and the experience they bring to the table. This many only include you at first, which is fine. But, be sure to highlight why you're qualified to run this business.
Financials - Outline the first 2 years of business financials based on your research. This should be realistic yet show that you can make a profit.
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