Business Plan

420 WordsMay 14, 20122 Pages
A good business plan follows generally accepted guidelines for both form and content. There are three primary parts to a business plan . The first is the business concept, where you discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success. The second is the marketplace section, in which you describe and analyze potential customers: who and where they are, what makes them buy and so on. Here, you also describe the competition and how you'll position yourself to beat it. Finally, the financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analyses. This part may require help from your accountant and a good spreadsheet software program. Breaking these three major sections down even further, a business plan consists of nine key components: Executive summary – contains brief overview of your business project, explains main consumer insights and product benefits. Here you can also find the amount of investment the project requires and its expected profit. Company summary – provides general information about the company behind the project, its business mission and objectives, ownership structure etc. Business environment – contains description of competitive products and companies, defines target market and key competitive advantages of the product. Sales and marketing plan – in this part the detailed description of the product is provided along with its competitive advantages, pricing, advertising plan. Sales estimate is usually given in this part, too. Operational plan – explains how you plan implementing your project in terms of production, quality control plan, customer service tips, procurement (supplier management). This part also contains implementation schedule for major works.

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