Question

What key functional activities should a business plan address?

Answer 1

The executive summary will match the title page in the overall business plan diagram. The description will explain what you want to tell the reader. That's really important. All too often, on page eight, what the business owner wants is buried. In the overview, clearly state what you are asking for. The comment should be kept brief and businesslike, not more than half a page probably. It may be longer, depending on how complicated the use of funds may be, but a business plan summary, such as a loan application summary, is usually no more than one page. You will have to provide a synopsis of your entire business plan within that space.

The definition of trade. Describes the company, its service, and the market it serves. Just what will be offered, to whom and why the company will have a competitive advantage should be pointed out.
Financial apps. Highlights the company's important financial aspects, including revenue, profits, cash flows and investment returns.
Requirements for finances. The money needed to start the company and grow is clearly stated. It should explain how the capital will be used and, if any, how the equity will be provided for funding. If the initial capital loan is based on protection rather than equity, the origin of collateral should also be specified.

The description of business usually begins with a brief description of the industry. Discuss the current outlook and future possibilities when describing the industry. You should also provide information on all the industry's various markets, including any new products or developments that will benefit your business or adversely affect it. Based on reliable data on all your observations and be sure to note information sources as appropriate. If you are looking for funding, this is important; the investor will want to know how reliable your information is, and will not risk money on assumptions or conjecture.

Be detailed in showing how you are going to give a competitive edge to your company. For example, because you are selling a full line of products, your company will be better; competitor A has no full line. After the purchase, you will provide service; competitor B does not help anything that he sells. The quality of your merchandise will be higher. You're going to give a money back guarantee. Competitor C has the reputation for selling the best French fries in town; the finest Thousand Island dressing will be offered to you.