To pen a successful business plan, you must include ten core components. As a result, your business plan will provide an in-depth insight into how the business will work. Business plans play a critical role in attracting angel investors, lenders, and venture capitalists. So, you should ensure that it contains all the micro and macro details. This would have a majestic impact on the stakeholders mentioned above.
You must begin your business plan with a title page. It must contain the company’s name, logo, and contact information. It is because it facilitates interested readers to reach out. Try to add creativity to your title page. It would indulge in looking further into the business plan. This brings us to the ten main elements.
1. Executive Summary
An executive summary is an overview of the underlying concept behind the business. It informs the readers about the product, and the market it intends to serve. It should highlight the financial objectives. So, it must include sales revenue, profitability, and projected return on investment (ROI). It’s because it would help to gauge capital investment necessary for meeting these targets.
Hence, a good executive summary conveys the size and scope of the market opportunity and strategic positioning. However, you are advised to avoid the temptation of writing every aspect in detail. It’s because an executive summary is concise. It should be no longer than a page or two.
2. Company Analysis
This element expands on the business purpose that was touched upon in the executive summary. The company analysis should emphasize the product and services on offer. So the investor will know the unique selling proposition (USP) that differentiates your products or services from those of competitors. In addition, you can give an insight into the achievements of the venture so far. It will give your business a realistic look.
3. Industry Analysis for Business Plan
An industry analysis peeks into the competitive landscape. Thus, you must include the details of the size of your target market, the industry trends, and any other competing industry.
4. Customers Analysis
Customer Analysis evaluates the different segments your product or service serves. Because business should be well-versed with customer demand, discuss the attitude and behavior of its target customers. It is advisable to highlight the extent to which your customers will pay for your product or service.
5. Competition Analysis
This section of your business plan identifies all the direct and indirect competitors of the business. Therefore, you should emphasize the individual and collective strengths and weaknesses of your competitors. It must convince the investors how your company has a competitive advantage over competitors.
You have given a snapshot of the business opportunity in the first half of the business plan. Now, the focus should be on strategic planning and implementation. You should primarily discuss marketing, operational, financial, and management strategies.
6. Role of Marketing Plan in any Business Plan
The marketing plan will describe your company’s desired strategic position and branding strategy. Thus, it will help if you dive into the description of the product or service on offer and potential extensions. It is essential to give an insight into the promotional and pricing strategies. You can recount any strategic marketing alliance possible in the future.
7. Operations Plan
You have to inform the internal strategies that will help build the business concept into reality. It is important to identify the business functions that will operate. You can mention the standard operating procedures (SOPs) devised to keep the venture up and running. Moreover, you can also highlight how the quality of the product or service will be ensured.
8. Management Team
This section demonstrates the number and quality of the human resource required. So, you have to emphasize the key management personnel and their academic and professional backgrounds. It will be best to answer who the company will consult for professional advice, for instance, lawyers, consulting firms, etc. The investors are also interested to know the Board of Directors or Board of Advisors.
9. Financial Plan is significant for Business Plan
In this segment, you communicate how you are planning to monetize the overall vision of the company. A financial plan contains revenue and profitability models. You must also present the sensitivity analysis of critical revenue and cost variables in the financial plan. You must highlight the key assumptions. It is advisable to compare your model with a similar company. This will prove that your model is more profitable and realistic.
A financial plan determines the amount of capital that a business will require. Moreover, it proposes its utilization. This is why it includes projected profit & loss statements, balance sheets, and cash flow statements.
The Appendix supports the rest of the business plan. It contains complete financial projections. It is because an executive summary and financial plan just provide a snapshot of these estimates. The Appendix may also include any technical drawing, partnership letters, or extended competitive analysis.
In a nutshell, businesses should follow the guidelines discussed above to design awe-inspiring business plans. We, at Oak Business Consultant, are specialized in providing consultation on these matters. We have helped a number of companies in building a robust financial model and business plan along with Pitch Deck. Therefore, you can visit our website Oak Business Consultant to consult with us for free.