Unless that direction is clear, the staff resources of the corporation may wander away from the high priority needs of the marketplace or service area. When the direction of the corporation is clearly defined, that direction forms a pact of sorts between the board and management. It defines the expectations of the board that management is tasked to carry out.
Today, however, it is often costly and complicated to build the foundation a good business needs to compete, and potential business owners frequently have to seek funding from outside sources.
Venture capitalists and banks will want to have a good idea of what your business is about and what you think it will be able to do.
Having a viable business plan to give to potential investors is vital to getting funding and even to being taken seriously by investors and your peers. A good business plan must include certain components and certain information.
Executive Summary The first and most important part of a business plan is the executive summary. This is an overview of the basic concept behind the business venture and the steps the business intends to take to overcome potential obstacles.
Most importantly, the executive summary overviews how the principal business employees or founders, known as the management team, are equipped to run the business and what experience or industry knowledge they bring to the table. An executive summary is in essence a synopsis of the plan.
Customer Analysis Another important portion of any business plan is the customer analysis. Every business has a target market for its product.
The target market is those people in the community at large that have been shown through research to have a need for the product or service the business is offering, the means to purchase the product or service and the willingness to do so.
A customer analysis shows there is in fact a marketplace for the product or service being offered by the business.
Competitive Analysis The final portion of any good business plan is the competitive analysis. The founders of the business show they have researched and identified competing companies in the same space as their potential venture.
By identifying the strengths and weaknesses of these companies and their products, the business plan makes clear areas and ways in which the product being developed will be better or more desirable than the products and services offered by the competitors.
References 1 Business Know-How: She has written for a variety of online destinations, including Peternity. She holds a Bachelor of Arts in communication from the University of Rochester.
Photo Credits business plan 1 image by pablo from Fotolia.The first five components of a professional business plan provide an overview of the business opportunity and market research to support it.
The remaining five components of the plan focus mainly on strategy, primarily the marketing, operational, financial and management strategies that that firm will employ. By Erica Olsen. Part of Strategic Planning Kit For Dummies Cheat Sheet.
Strategic plans can come in many different shapes and sizes, but they all have the following components.
The list below describes each piece of a strategic plan in the order that they’re typically developed. 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. Meet future demand profitably with SAP Integrated Business Planning, a real-time cloud platform for harmonised supply chain management and planning.
Feb 19, · The 6 Key Components Of Writing A Business Plan.
it is more about taking the time to think through the below 6 key components of preparing a . A business plan can take many forms depending on your business type. It describes products and many other details, but most plans will include these components.