Description Of A Business Plan

Description Of A Business Plan

A well written business plan entails a comprehensive description of the proposed business or any other existing business under study. A business plan should contain an outline of the intent of the business, the goals, the market analysis, the manufacturing procedures and the needs. In addition the business plan should entail a brief projection into the future of the business. This company vision should be realistic and attainable. The owners of the company should also be enlisted as well as the managerial hierarchy. The purpose of such a business plan is twofold; it ensures that the company vision is attainable and guides any future direction of the company and it is also a necessity in case of seeking external sources of capital for the company. A business plan should be specific and tailor made for the specific business.

A business plan should contain a brief but intriguing plan summary. This serves as an abstract allowing the investors brief but key information that will intrigue them to share the companys’ vision of growth (Abrams & Kleiner). The business summary is a brief description of the entire business plan. The business plan should contain information on the company and the industry. In this section, the plan should contain a history of the company. It is imperative to include a description of the company, the products or services and a background of ownership of the business. The principals of the business under study should also be included including the functions (Abrams & Kleiner). In addition, information regarding the industry including the current status and any future predictions should be enlisted and justified. It is important that a market analysis be conducted and a list of the main competitors and their performance listed (McKeever, 2008). The main trends likely to affect the business should also be highlighted.

Any business deals with a main product or a service. The product or service which the company deals with should be comprehensively described. Brochures as well as photographic descriptions should be used where possible. The time and the costs involved incase of a new business should be well described. The necessary proprietary features should be described including any licensure needs. A future projection should be made to ensure that the owners have plans for growth. A comprehensive market analysis is compulsory for a well written business plan. This is one of the most time and resource intensive sections in a business plan (Abrams & Kleiner). It is necessary to define the market in terms of the customers, the size, the trends and the competitors. The business owners should be able to use this section to convince potential investors that there is a niche in the market which will be occupied by the business under study. The owners also have to reflect that they understand the needs of their company. They should be able to outline how profits will be attainable in the business.

A well defined business plan should also outline a comprehensive marketing strategy. This defines the business in terms of projecting sales, the market they are targeting, as well as the shares available. The owners should be able to project the possible sales and shares based on the market analysis and formulate a strategy to ensure the business succeeds. The pricing of each of the goods and the services should be listed and the plans for sales and distribution of these resources should be outlined (McKeever, 2008). The operations of the company should also be listed including the location of the business, the space required and the labor necessary to produce the product and the services. In addition, this section should contain the manufacturing processes in detail. An operational management team is crucial to ensure that the business runs smoothly (McKeever, 2008). The organization of the management, the hierarchy and the remuneration should be explained. A schedule of activities which are to take place in the company should be well documented as well as any projected risks and problems. The companys financial information should also be described. The source of funds, the use of the funds and any future needs, should be predicted and included in the business plan.

In conclusion a well detailed business plan allows the company to evaluate their performance and synchronize their workers towards achieving the companys’ goals. In cases of seeking funding, a well detained business plan allows the investors to study and evaluate the business as a potential source of investment. A good business plan should enlist a description of the company and the industry, the product or service the company deals with, a market analysis, the operations, management of the company and financial projection at every stage of the business.

References

Abrams, R., & Kleiner, E., (2003). The successful business plan: secrets & strategies. Palo Alto: The Planning Shop.

McKeever, M., (2008). How to write a business plan. New York: Nolo publishers.