Writing a business plan is an important step for any entrepreneur to take. For the success of a business, business plan acts as a roadmap. It is an important tool for investors and lenders. Writing business plan is not easy; it needs enough time to write it.
The essential elements of writing a business plan include:
1. Executive summary: One of the most important sections of writing business plan is executive summary. It includes:
- Information about your company
- Vision statement
- Mission statement
- If you are writing business plan for already establish company then it must contain history of your company
- Summary about your product/service
- Description of your competitors
- Revenue
- Cash requirement
2. Company overview: Company overview is the short description of your company. It contains information about:
- Background of a company
- Office location
- Your goals and objectives
- Products
- About your partners
- Promotions
- Customers service
3. Market analysis: Market analysis illustrates information about your customers and target market. It includes:
- Demand of your product
- Your present position in the market
- Description about your customers; there needs and desires
- Market size
- Market potential
- Growth of the market
4. Marketing and sales: It is important to make your marketing and sales strategy strong, to attract large number of customers. Marketing and sales includes:
- Promotional tactics
- Marketing strategy
- Advertisement of your product
- Market analysis
4. Management plan: It describes information about:
- Your employees
- Their job description
- Employee’s needs
- Benefits you are providing to your employees
- Information about your board of directors
5. Operational plan: Operational plan includes:
- Business’s day-to-day operations outline
- Information about the necessary equipments
- Worth of your assets
- How to overcome risks
6. Financial projection: For successful business, every business needs finance. Financial projection should includes:
- Sources and use of funds
- Profit and loss statement
- Balance sheet statement
- Cash flow projection
- Break-even analysis
- All operating expenses
- With the help of above essential elements of business plan, one can write quality business plans.