Important components of a business plan

What is a Business Plan?

A business plan can be called as a model of your business.  A document, which explains about business objectives, tactics, marketing and financial forecast. Business plan should be clear, meticulously planned.

Important parts of a business plan are as follows:

Professional Executive Summary, Every business plan must have professional management summary.  Professional Management summary should capture to attract your target segments.

Business Coverage

You have to be sure to include the legal details of your business such as Permanent address and brief description about your business. Simple description, which communicates your business accurately, will be ideal and most importantly if you write in simple English that would be better.Every business has competition in this business coverage section you need to address how you are going to serve your target segment better than your competition.

Market Analysis of your business

Market analysis is essential before writing up a business plan. If you include market analysis it shows the people reading the business plan that you have done your homework.  About  your business plan , market analysis is a summary of your marketing plan.

You need to mention the demand for your products or services, trends within the scope of your industry and a brief of your competitive pricing and policies if any.

Financial analysis

Finance is the backbone of any business, analysis on finance is important. In this section you must show that you are enthusiastic and committed to your business of what you have written in your business plan. You need to collect all the data and present it accurately in your business plan like Amount of personal funds, amount of capital you need, your plan to repay the debts.

Include all relative financial worksheets, annual income projections, projected cash flow statements and balance sheet.

Management summary

Include your organizational structure and about your management team in this summary. Explain the legal structure of your business whether its a partnership, corporation or limited liability corporation. Include important curriculum vitae of key players on your management team. Show recruitment projection in coming years. These are the following ingredients that you have to keep in mind while writing a business plan.

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