A. Purpose of a Business Plan:
B. Components of a Business Plan:
- Identify and define the goals, management and operational strategies of a new or on-going business.
- Provide the basis for venture capital funding or a loan application.
- Set a value on a business for sale or other legal purposes.
- Provides the basis for defining the unique elements and purpose of the business concept and provides benchmarks for measuring performance.
- Defines financial earnings and marketing objectives and identify the strategies necessary to achieve those objectives.
- For use in the evaluation of a new product line, product promotion, or business expansion.
C. Types of Business Plans:
The components of a successful business plan are described below:
The title page of your business plan provides the business name, business address and phone number, and the name of the company president or CEO.
Table of Contents
The Table of Contents provides a listing of each major section (including sub-sections) of your business plan.
Provides a synopsis and brief summary statements of the highlights and key points of the entire business plan.
Provides a brief statement of the direction and destination of where you want your business to be and what it will look like when you get there, and the goals and objectives that must be accomplished along the way.
The purpose of this section is to provide basic information about your company as to its history and origin, detailed description of its unique service and product features, its organizational structure, management staff (including their qualifications and prior accomplishments), and strategic alliances.
This section provides a description of your product or service and identifies what makes it unique and better than what your competitors are offering.
The purpose of this section is to provide a general overview of the industry that your business is a part of, the market opportunities available for your company, a description of your target market niche, current market trends, growth potential, and an analysis of who your competitors are, and what their strengths and weaknesses are in their product or service.
The purpose of this section is to provide a description of your marketing concept, your approach to advertising and public relations, and your specific marketing strategies that you will use to achieve your market and company growth goals.
In this section you will specify what your capital requirements are, income projections, financial assumptions, risk analysis, and your payback plan.
Appendix (or Supporting Documents)
This is the section where you would include the resumes of key people, financial statements, company brochures, and any other supporting documentation that is referenced in your business plan or relevant to your business description or operation.
D. Start-up or Ongoing:
A business plan should be tailored to reflect the type or kind of business that you will be operating. Note the following examples:
Service: A service business provides a service and is the most basic business type.
Retail: A retail business sells products of various kinds.
Wholesale/Distribution: A wholesale or distribution company sells or distributes products in a high volume to large companies or to a large customer base.
Manufacturing or Assembly: A manufacturing or assembly business may operate in any combination of the above.
Home Office: A home office business can be any type of business operating from a home base.
- For start-ups, information should be provided that identifies projected start-up expenses and required capitalization. A chart should be provided that shows initial expenses, assets, and anticipated income.
- For an on-going business, information should be included that indicates past performance. A chart should be provided that shows highlights of past year sales and income accomplishments
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