The Main Components of a Business Plan
Date: 02/18/16 By: PlanIt Business Team
Not all business plans are created equal. And not all business plans include some of the key sections that they should. But when it comes to creating an effective business plan, there are certain main components that should definitely be included in order to prove the validity of your business and the ability your company has to execute the plan.
While each business plan should be customized to fit your company’s specific needs, there are certain sections highlighted below that should be included in just about every plan.
This portion of your business plan provides a brief overview of your company that could stand alone, separate from the rest of your business plan. It should include a clear value proposition, a financial summary, and a S.W.O.T. analysis.
This summary is especially important to your overall business plan, because it needs to hook your potential investors and generate their interest in your business. If the executive summary falls flat, your business plan may end up going unread.
This component is key to explaining how you plan to take your idea and turn it into a reality. Identifying the steps your business will take proves to investors that their money is not simply being thrown away on an idea that will not work in reality.
While just about anyone can have a great idea, it is how the idea is actually executed that determines a business’ success.
An analysis of your industry and the market for your product or service shows why your business is viable based on recent trends. This section covers the details regarding your target market and the opportunity your business has to generate demand and revenue.
In this section your primary competitors will be identified, along with a comparison of your company’s products or services with theirs. This demonstrates who your top competitors will be, along with what sets you apart from the competition.
Business Development and Marketing
This component of your business plan should include details about how you plan to build your brand and market your product or service to the target audience. Details about which distribution channels will be utilized, how brand development will be approached should be included, along with information about partnerships, marketing, and other advertising methods that will be used by your business.
A clear operations strategy is essential to the execution of your business. For many businesses an organization structure is important to demonstrate what positions are necessary, along with details on how products and services will be delivered, and any other functions that your business will need, and how they will be handled (in-house or outsourced).
To build on the operations section, the management summary provides a brief bio of each individual that holds a key position in the company. This includes information about their education, experience, and any other details that prove their ability to perform their function within the business.
With each of these main components of a business plan, your company is well on its way to securing the funding it needs. But keep in mind that writing an effective business plan requires more than just an ability to put together a few pages of copy. Instead, to be effective, your business plan should be customized to your company, with the right information included to capture the attention of investors.
Check out some of the business plan samples created by the experts at PlanIt Business, and contact us today by calling 800-894-0828 or filling out the online form to learn more about how we can write your custom business plan.