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Describe the business plan. What are its parts and the purpose of each one?

  • Describe the business plan. What are its parts and the purpose of each one?
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Answer #1

Business plan is an outline which is set in advance to achieve a mission and vision in a business.

Business Plan have a 7 Part which are as follows

1) Executive Summary

2) Company Description

3) Product and Services

4) Market Analysis

5) Strategy and Implementation

6) Organisation and Management Team

7) Financial Projection

Executive Summary:    Executive summary is a short description of the business this section will include all the points in brief, Investors generally read Executive summary to decide whether they should invest time to read full Business plan so this should be catchy and cover all main points, It is generally advised to draft Executive Summary at the end because it becomes easy to brief all elements into it. Executive summary generally Include

Business Name

Product and Services

Mission and Vision.

Company Description: This section will include the description of your company as in which segment it is operating, what is the legal structure of the company, Mission and vision of the company, a brief history of your company, and company projected growth, this section can also help you as reminder as why you have started this in a first place.

Product and Services: It will describe what you are selling in the market and what will be your competitive edge and how your Product and services will be different from others.

Market Analysis: Here we have to give outlook of the Segment and industry where we are operating with the help of some primary and secondary research which will show what are the growth expectation in the sector and this section will also brief about the competition and what will be the expected challenges which you may face and what are your strategy to over come it.

Strategy and Implementation: In this section we have to brief our Marketing and Promotion strategy, we also have to give plan about our source of labour, a detail plan about how you will position your business in the mind of your customer, Your Operation hour and cost attached to it and you will have to also describe your Fixed and Variable Cost.

Organisation and Management Team: In this section you will introduce your team/board member and what will be their line of authority because a strong team can make Ordinary Business into Extra Ordinary.

Financial Projection: In this section you have to show your capital structure and what will your source of funding i.e. Equity and Debt you have to compute all Fixed and Variable cost in your Business and Calculate Break Even Point as lower the Break Even point better it is for the Investor and business you will also have to Compute Net Present Value of the company as it how it will be a good decision by investing in this business.

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