Writing a business plan is an important step for any entrepreneur to take. For the success of a business, business plan acts as a roadmap. It is an important tool for investors and lenders. Writing business plan is not easy; it needs enough time to write it.
The essential elements of writing a business plan include:
1. Executive summary: One of the most important sections of writing business plan is executive summary. It includes:
Information about your company
Vision statement
Mission statement
If you are writing business plan for already establish company then it must contain history of your company
Summary about your product/service
Description of your competitors
Revenue
Cash requirement
2. Company overview: Company overview is the short description of your company. It contains information about:
Background of a company
Office location
Your goals and objectives
Products
About your partners
Promotions
Customers service
3. Market analysis: Market analysis illustrates information about your customers and target market. It includes:
Demand of your product
Your present position in the market
Description about your customers; there needs and desires
Market size
Market potential
Growth of the market
4. Marketing and sales: It is important to make your marketing and sales strategy strong, to attract large number of customers. Marketing and sales includes:
Promotional tactics
Marketing strategy
Advertisement of your product
Market analysis
4. Management plan: It describes information about:
Your employees
Their job description
Employee's needs
Benefits you are providing to your employees
Information about your board of directors
5. Operational plan: Operational plan includes:
Business's day-to-day operations outline
Information about the necessary equipments
Worth of your assets
How to overcome risks
6. Financial projection: For successful business, every business needs finance. Financial projection should includes:
Sources and use of funds
Profit and loss statement
Balance sheet statement
Cash flow projection
Break-even analysis
All operating expenses
With the help of above essential elements of business plan, one can write quality business plans.
