How to Draw Up a Business Plan
Drawing up a business plan may seem unnecessary if you don’t need the bank’s finance, or perceived as grim and tedious; however all the aspects of the business require consideration and reasoning to succeed. In most cases the business plan is drawn up before the business begins. Read further for the 6 main business plan components.
The executive summary is the first component seen in the business plan. It is a brief summary/overview of your business plan and is one to two pages long. Most professionals suggest that the executive summary be written as a pitch or proposal. Also, it is better to write the summary after you have written the business plan.
The operations plan should contain the finer details of the business plan; for example if you are selling a product, the operations plan will comprise information about how and where the product will be produced, where it will be stored and sold etc. Obviously the operations plan varies from business to business. The main task of the operative plan is the particulars of the day to day operations from the first day.
The marketing plan should consist of information about your target market, and how you plan on advertising your service/product. Another aspect of the market strategy is your competition and the condition of the industry - find ways your business can outstand the competition.
This is the section of your business plan in which you state the management structure of your business and description of your team or staff. The best way to arrange the management strategy is to break it down into sections; stating the legal structure, the responsibilities of each member, the different departments, the skills and requirements for the positions, the number of employees and the job descriptions.
Usually the length of a page, the finance section is situated at the end of the business plan. The finance section provides information about the business’ expenses, break-even point, cost to get your business running, and the expenses for operating thereafter.
The appendix section is similar to the finance section; the difference is that it consists of the actual figures mentioned in the finance section.
Regardless the type of business or the industry, having a business plan is crucial to the success of a business. Having a set business plan creates direction and clarity.