What are the main components for writing a business plan?
Building an impressive business plan needs some specific steps to start with. It must be written in well structured and without having grammar error. You’ve to write your skill set, goals, marketing strategies and many more things in your plan.
Well, many of us thinking about what to write in a business plan. Which things or components are vital for your plan!
11 Components for Writing a Business Plan
So, in this article we are going to explain all about planning components and its uses.
1. Executive summary
Executive summary indicates the business goals and what is all about your business.
Also, write the impression grabbing pitches in this area to impress investors and business loan provider. Do not confused about it; we will write more about all the specific topics to cover each component in separate article. So, this is just an overview of business planning components.
2. Business description
In this area you have to write all the details, name, domain, location, what is your business about, who is founder and what is business brand. This section introduce your business form legal terms and your personal ideas too. So, write your ideas about what is all about your business and what you are going to do.
3. Business environment analysis
In this area you have to find and write the strengths and weaknesses of your business. Make sure that your weaknesses should be positive and it has some advantage over your competitors.
Here you have to write about internal environment analysis & external environment analysis. External environment analysis covers an opportunities and threats of your business. Strengths and weaknesses are covered in internal environment analysis.
You have to write SWOT Summary for your business to understand capitalize strengths, mitigate weaknesses, exploit opportunities and how to avoid threats.
4. Industry analysis
Industry analysis is also one of the important part of your business. In this area you have to learn about your product or service industry. Know and write about supplier power, threat of new entry, competitive revelry and buyer power. This thing will be covered in future articles too. So, this is just a little bit information that covered by us.
5. Competitive analysis
Competitors are vital for your business. Make sure you do have list of your competitor and how you are going to analyze those marketing strategies and product quality. Learn the strengths, weaknesses, value proposition, business model and key brand differentiators with your competitors.
You must need to aware with what your competitors are doing and write about all the things in your business plan. Also, you need to update your plan according to market change.
6. Market analysis
Market analysis is a critical thing that every entrepreneurs are skipping and thinking more different.
Well, researching all about market requirement and product demand will be hard task for every one. But, understanding the competitors, market size, segments, competition influence, business groups and market shares will help you to analyze your business market and product demand.
7. Marketing plan
Without having marketing plan; on one can get any positive results on those business. Marketing plan involves all the strategies and planning for how you are going to promote your product in your local market and international one.
You have to cover business goals, marketing priorities, marketing goals, marketing strategies, key actions and dependencies or risk of your business. So, choosing marketing channel or writing a plan will help you to understand more about your startup.
8. Operations plan
After doing all things on the paper you must need to go for practical one. But, you have to write your operation plan to understand what you are going to do in your industry or company. If you do not have any experience then, ask for advice from experienced person.
Understand about budgetary information, training plans, maintenance and how to run your company in each area of your business.
9. Team and management plan
Do your business require team or workers to contribute those work! YES! then, write all about how you are going to provide team training. Also, what is all about safety, roles and responsibilities? How you are going to reward your employees on those achievements? Many more things will be done in this area.
10. Financial projections
Financial projection takes some time to make a list of your investment. Well, make sure that you cover all the required materials and equipment’s for running your business.
Financial projection covers your fees of franchise, opening inventory, grand opening event, training expenses, supplies, insurance, office equipment’s, legal & accounting and many more things are covered in this area.
- Franchise Fee
- Upfront lease expense
- Leasehold improvements
- Furniture, Fixtures, Equipment’s
- Security deposits
- Architect
- Grand Opening Event
- Opening inventory
- Insurance
- Supplies
- Training Expenses
- Legal & Accounting
- Office Equipment’s
- Misc. Expenses
- Contingency
these are the few list that you need to cover in your financial projection and its investment amount.
11. Appendix
Appendix is a simple page where you have to locate all the steps or other components of business plan. You can write more about your thoughts and business improvement in this area. But, making it simple will be more effective one.
If you found this article helpful then, like it and join our young entrepreneurs forum community too. If you’ve any questions on business plan writing then, do not forget to ask it in comment box. Asking your questions in comment box is the best option for getting fast reply. So, do it as possible.
Well, thanks for reading these 11 main components for writing a business plan for your business in 2020.
