Components Of A Business Plan
What is a Business Plan?
A business plan is a written document that describes in detail how a business—usually a startup—defines its objectives and how it is to go about achieving its goals. A business plan lays out a written roadmap for the firm from marketing, financial, and operational standpoints
Good plans are usually highly detailed and include information on all aspects of the business, including the industry, marketing, finance, personnel and various operating procedures. They are specific, communicate to all company employees and require commitment from everyone.
- Establish a business focus. The primary purpose of a business plan is to establish your plans for the future.
- Secure funding
- Attract executives.
Components Of A Business Plan: Step-By-Step Guidance
- Mission Statement And/Or Vision Statement
So you articulate what you’re trying to create. Here are questions that will help you clarify your vision:
- Who is the customer?
- What business are you in?
- What do you sell (product/service)?
- What is your plan for growth?
- What is your primary competitive advantage?
- Describe Yourself
Description of your company and product or service
- Describe Your Uniqueness
Description of how your product or service is different
- Market Analysis
Market analysis that discusses the market you’re trying to enter, competitors, where you fit and what type of market share you believe you can secure
- Description Of Your Management Team
To include the experience of key team members and previous successes
- Marketing Plan
How you plan to market the product or service?
- Analysis
Analysis of your company’s strengths, weaknesses, opportunities, and threat, which will show that you’re realistic and have considered opportunities and challenges
- Develop A Cash Flow Statement
So you understand what your needs are now and in the future (a cash flow statement also can help you consider how cash flow could impact growth)
- Financial Projection
Funding requirements, balance sheet, sales forecasts, business ratios and break-even analysis.
- Summary/ Conclusion
Summary/conclusion that wraps everything together (this part can also be the executive summary at the beginning of the plan).
Promotion
Promotion is a very good activity to ensure your brand is well known by your target market. You can start by having online marketing, for example, Facebook (FB) fan page and post about your company, product or services.
This is because most of the online marketing is free-of-charge and you can respond to your customer inquiries fast. Advertising can give a huge impact on your business and make your brand more establish.
Setting The Selling Price
Calculate your total cost before deciding how much you want to sell the product. If you’re manufacturing a pen at N1.50 and decide to get 80% profit out of the total cost, you may want to sell it for N2.70 (N1.50+80% – excluding Tax).
If your total cost production is very low, you can choose price skimming which sets a relatively high price for a product or service at first, then lowers the price over time.
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