Basics of a simple “Business plan”

Business plan

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Business plan

  • A most important and underestimated aspect of a business plan is the authenticity and credibility of the principal. Before anyone ‘buys’ your business plan they have to ‘buy and believe’ in you.
  • Business plans and details vary depending on your targeted reader. Adjust the plan based on who the plan is meant for. (E. g. Investor / Banker / Buyer).
  • Keep it simple and do not get too detailed unless so requested.
  • A Business plan is a ‘living document’ that needs to be revisited regularly to stay on target.

Here are the key components

  1. Executive Summary: This highlights the key points of your entire business plan. It’s the doorway to your plan, but you should write this at the end, just to make sure you give a clear picture of what’s inside!
  2. Company Summary: An overview of who you are and what you do. Summarize the vision of your business with the details about incorporation and related statistics.
  3. Products and Services: List of all products and or services you offer. You may need to include tables and charts for details, price lists etc.
  4. Market Analysis Summary: This section explains the type of business you are doing, what your customers’ needs are, where your customers are based, how you will reach them and what is the ‘value-add’ your business is bringing to the customers and the society as a whole.
  5. Strategies & Implementation: Strategies and planning have to be backed by a clear action plan that highlights what techniques you will be using to organize operations / promote and sell the products/services. Action plan must have a clear timeline with measurable benchmarks.
  6. Management Summary: This section covers the organization of your business, and the key members of the management team. This is a summary of the professional background and skill sets of your team. Strength of your team enhances your business plan and attracts the attention of investors.
  7. The Financial Plan: (Crucial component that is often mistaken for a total business plan) You need to present the projected Profit and Loss and Cash Flow tables, sales forecast, business ratios, and a break-even analysis etc.

Remember a good Business plan is a map to your future. (You would not leave home without a map to your destination would you?)

A business plan not only accommodates interested parties such as Investors buyers or Bankers, but also helps to sharpen your focus and know your priorities.

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