Are you thinking of putting a business plan together? Here are five most important parts of a business plan that you should be aware of before you start:
1 – Business description
In a competitive market, your business plan is equally about plans as it is about proving that it is able to compete with other businesses. This section of your business plan provides you with the opportunity to pitch to potential investors why it is competitive thus and worthy of investment. Here you should succinctly outline what your business is for, the market that it serves, who are you customers and how you are different than other businesses.
2 – Market
This section of the business plan is one of the most important because a well written and researched market analysis will be the most convincing section to potential investors and will also be the most useful to you. Here, you will need to identify who your target customers are, what other companies you will be competing with and how this part of the market is regulated. A thorough market analysis will look at how the market changes over time, what influences changes in the market and how stable it is as well as how much of the market you can expect to snare with your business. Finally, this section of your business plan is where you will lay out your financial projections based on your analysis of the market. This should allow you to estimate how much profit you can expect to make which is another attractive prospect to potential investors.
3 – Organisation
In this section you should detail the roles of employees or business owners and what qualifies them for these roles. Although it may seem unimportant, giving prospective investors the opportunity to assess the suitability of the employees within your company which, if stated well, may give them more confidence in your plan and be more likely to provide funding.
4 – Marketing
Here you should outline how you plan on promoting to your company and reaching new customers. You should also state if you are intending on outsourcing marketing or conducting it yourself as well as how much you expect to spend on marketing and for how long.
5 – Product
If you have a physical product you are selling you should detail the lifecycle of the product alongside the costs and means of production. Importantly, this section of your business plan should show that you have made efforts to secure the most efficient processes to obtain your product and to show that you are not losing money unnecessarily.
Thanks to informi for providing us with this insight.