What Are the Basic Components of a Business Plan
If you don't know the difference between a tablecloth and a spreadsheet, you'll definitely want to enlist some professional help. However, even if you're planning to eventually hire a business consultant to write your plan for you, you should still try to write a rough draft on you own. The first step in doing so is to familiarize yourself with the basics by reading through these typical components of a hypothetical business plan.
Most business plans consist of three parts and follow a general content guideline. The first part of a business plan explains the concept of the business. In the concept section, the industry is discussed, as is the structure of the new business, and its products or services. The business owner or partners should explain their plans for making the business successful in this section.
The second section of the business plan is the marketplace section. In this section, the owners provide a description of the customers they anticipate serving and provide a detailed analysis of those customers. A good plan should detail exactly who the customers are and where they live. It should also point out factors that contribute to the customers' buying habits. The business plans should also explain any competition in the marketplace section and include a plan for beating the competition.
The financial section is the third portion of the plan. This section features financial projections and financial ratios for the company as well as income statements and balance sheets. Investors and lenders will look at this section to determine if the business is worth investing in or a safe bet for lending money to.
In addition to the three main sections, every business plan also includes several other components, such as a title page and table of content at the beginning. Most plans start off with an executive summary which sums up the data in the rest of the plan. Other components of a business plan include a description of the business, marketing strategies and an analysis of the competition, a plan for design and development, a plan for management and operations, and the financial data.
The components of a business plan can vary considerably, but they all contain certain components (each of the components below will be discussed in detail in subsequent documents in the series).The structure of a written Business Plan mirrors the actual organization in that it contains sections for business functions such as marketing, finance, and production. The general components of a Business Plan are as follows:Done by Deloitte & Touche LLP, this is a very good rundown of the components of a business plan. Well written, very complete. Tells you what the goal or intent of each section is, not the details of how to do it (after all that's where they make their money!). Below we have described the components of a business plan and provided you with worksheets for each. You can also download TEF's for writing the business plan; this template must be used by applicants to TEF's Business Plan Competition.There are many different approaches to writing a business plan, some more complex than others. But the basic components of a business plan can be organized as follows: A business plan is a document demonstrating the feasibility of a prospective new business andproviding a roadmap for its first several years of operation. Business plans are an important part of creating new businesses, whether as a or an offshoot of an existingbusiness. Business plans for startups are often shared with funding agencies, potential investorsand to obtain the necessary funding.Although the specifics may vary, here are the typical components of a business plan for a newbusiness:A business plan is similar to a . However, thelatter is a representation of how an existing business works, rather than how a prospectivebusiness can work.