KEY COMPONENTS OF A BUSINESS PLAN
What are the parts of a business plan? A good business
plan has ten key parts. Covering each of these areas is important if you want
to attract investors. Learn about the first five of these components of a good
business plan here.
plan has ten key parts. Covering each of these areas is important if you want
to attract investors. Learn about the first five of these components of a good
business plan here.
A good business plan has ten key components. Providing a
comprehensive assessment of each of these components is critical in attracting
investors. This article discusses the first five components.
comprehensive assessment of each of these components is critical in attracting
investors. This article discusses the first five components.
EXECUTIVE SUMMARY
The Executive Summary provides a succinct synopsis of the
business plan, and highlights the key points raised within. The Executive
Summary must communicate to the prospective investor the size and scope of the
market opportunity, the venture’s business and profitability model, and how the
resources/skills/strategic positioning of the Company’s management team make it
uniquely qualified to execute the plan. The Executive Summary must be
compelling, easy-to-read, and no longer than 2-4 pages.
business plan, and highlights the key points raised within. The Executive
Summary must communicate to the prospective investor the size and scope of the
market opportunity, the venture’s business and profitability model, and how the
resources/skills/strategic positioning of the Company’s management team make it
uniquely qualified to execute the plan. The Executive Summary must be
compelling, easy-to-read, and no longer than 2-4 pages.
COMPANY ANALYSIS
This section provides a strategic overview of the company
and describes how the company is organized, what products and services it
offers/will offer, and goes into further detail on the company’s unique qualifications
in serving its target markets.
and describes how the company is organized, what products and services it
offers/will offer, and goes into further detail on the company’s unique qualifications
in serving its target markets.
INDUSTRY ANALYSIS
This section evaluates the playing field in which the
company will be competing, and includes well-structured answers to key market
research questions such as the following:
company will be competing, and includes well-structured answers to key market
research questions such as the following:
What are the sizes of the target market segments?
What are the trends for the industry as a whole?
With what other industries do your services compete?
What are the trends for the industry as a whole?
With what other industries do your services compete?
ANALYSIS OF CUSTOMERS
The Customer Analysis
section assesses the customer segment(s) that the company serves. In this
section, the company must convey the needs of its target customers. It must
then show how its products and services satisfy these needs to an extent that
the customer will pay for them
section assesses the customer segment(s) that the company serves. In this
section, the company must convey the needs of its target customers. It must
then show how its products and services satisfy these needs to an extent that
the customer will pay for them
ANALYSIS OF COMPETITION
This section defines the competitive landscape of your
business. It identifies who the direct and indirect competitors are, assesses
their strengths and weaknesses and delineates your company’s competitive
advantages.
business. It identifies who the direct and indirect competitors are, assesses
their strengths and weaknesses and delineates your company’s competitive
advantages.
The first five sections of a business plan are critical
because in most cases, investors will not read the full plan. As such, winning
the investor’s interest early is critical. In addition to providing background
on the full business opportunity, these sections provide the market research to
back up the business’ potential, another critical factor in gaining an
investment.
because in most cases, investors will not read the full plan. As such, winning
the investor’s interest early is critical. In addition to providing background
on the full business opportunity, these sections provide the market research to
back up the business’ potential, another critical factor in gaining an
investment.
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Business plan is a very important part of being a businessman having a good business plan is equivalent of a lot of investors.