What To Include In A Proper Business Plan

What To Include In A Proper Business Plan

A business plan is a written document where objective, target, strategy, finances and other details are elaborated. It acts also as a guide for the business to where it is headed and what it wants to achieve in a couple of years. A help when problems, anticipated or not, arises. The business plan doesn’t necessarily have to be formal and long provided that everything is stated clearly and strategically.

Having no business plans is up for an impending doom. That’s why, it is of paramount importance to create a proper business plan, whether it’s a new venture or an existing one.

An effective business plan should be in this manner:

Executive Analysis

Basically, an executive analysis is an overview of everything you have planned for. It is precise and brief wherein the reader can easily get the idea of the business plan.

Business Description

This is where you will introduce and describe the business or company including its background, how it started and where your business is headed. In short, the vision and mission.

Product and Services Description

What is being offered by your business should be on the Product and Services Description. Give details of the products and services. Master your product and be well versed. Know the ins and outs of your business for success to follow.

Competitive Analysis

According to Sun Tzu, a Chinese military strategist, “If you know your enemies and yourself, you will not be imperilled in a hundred battles.”. Although he was talking about a real battle per se, it is also applicable in creating your competitive analysis.

Identify and study your toughest competition. Know their strength and weaknesses. Beat your competitors and pounce on their weaknesses. By that, you can create a good strategy to defeat thy enemy in the same market.

Sales and Marketing Strategy

Know your target market. By doing this, you could easily position your products to potential business partners and possible customers. You can identify easily on what segment of the market your product suits best and properly target the consumer segment where your product belongs. Plan on how you will generate more sales.

Operation and Management

In this part, you should have a detailed account of how you’ll optimize your logistics and emphasis on the efficiency of your manpower. Show the structure of the company,  your management team, the number of people needed and positions to be filled. Remember that the fate of your business relies on the people running it. Your team should be capable and knowledgeable about the task at hand. They should have a complete grasp of your day to day operation because the efficiency of your company is based on the competency of your employee.

Finances

In here, a clear explanation of where your funding will be sourced and where it will be invested should be shown. Explain also what assets you need to acquire and on what part of the business will it be used. For every investment, there should also be a return so don’t forget to include your projected revenue both short and long-term.

Watch this video from Brian Tracy for more info: