What should be essentially Involve in a BUSINESS PLAN?

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Published: 05th May 2009
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When you think of starting your own business, and create fantasies regarding this, you need a sound plan that should necessarily support all areas on which a business depends. Business plan put emphasis on two sole purposes:

• To communicate the company's policies and positions with existing investors and stake holders by presenting current state of business affairs to them

• To attract and make new investors interested in your business

A business plan which is comprehensive enough to show the past achievements, and future goals of a company, is a helpful technique to meet goals.

For any big or small business, there is a four staged procedure involved:

1. Planning

2. Development

3. Implementing

4. And execution

In the below lines, we have evaluated some of the very important points that are necessary to be included in your business plan.

EXECUTIVE SUMMARY:

A critical part of a business plan. A business plan decides where you stand and will go further. When you take your business plan to an investor, or, bank they will take their decisions upon reading your financial projections, and marketing strategies. Summary should be an overview of managerial strategies, business model, opportunities, and financial analysis.

BUSINESS DATA:

Business data mainly includes company descriptions; what is the business all about? Company's products, and services, target market, and targeted audiences. Company's key personnel and SWOT analysis are also favourable to be included. A business data should also communicate future goals and missions. Use words to empower building your business.

INDUSTRY ANALYSIS:

Industry analysis identifies the structure of an industry. An industry becomes stable, growing and successful when it finds businesses with greater economics. The strategies determined and likely to be used are:

• Suppliers bargaining power

• Buyers bargaining power

• A threat of new competitors

• Threat of alternate options

• Contention among competitors

MARKETING PLAN:

Marketing your product, and service is an important phase. Before it comes to market your product, or, service, a comprehensive plan is required which should analyze target market, sales plan, and competitive analysis. These are of greater importance in a marketing plan.

OPERATIONAL PLAN:

The operational plan includes external, and internal factors involve in company's managerial tasks mainly. It is an implementation of the marketing, financial and business plan. It includes productivity, quality assurance, improvements, maintenance, distribution; further more it includes the most important management strength and management hierarchy.

FINANCIAL PLAN:

Financial data preparation are challenging for new businesses. Financial statements along with projections that include income statements, cash flow, profit and loss measurement and balance sheet.

APPENDIX: This section evaluates the supportive content, or, data that helps in describing the overall business plan. The data that is suggested to be included in appendices are market research, marketing materials, intellectual's property description like trademarks, valuations, environmental statements, resumes, management team's biographies etc.

This is the overall description of a business plan. You can design your own business plans that meet your requirements and needs; your business plan will mainly depends upon the business type, business stage and a purpose for preparation. You can set your standards for your business plan independently

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