Question

Name eight components of typical business plans. Explain each in your own words.

Answer 1

The eight components of the business plans are:

-- Executive summary with mission statement: There should be a clear description on the goals, vision, marketing strategies and projected financial results. It should tell what will business stand out from the competitors and cause to be it successful. It must be kept to a half of a page to 1 full-page and give synopsis of the entire plan of business.

-- Table of Contents: The table of contents and table of appendices must provide the reader to the sections and subsections of the entire plan of business.

-- Company Description: The description of the nature of business and includes crucial factors that you believe can make your business a success.

-- Product or service description: The description of it's product or service; and how the product or service is different.

-- Market Analysis: Define the marketing strategies of business. Start with tactics, strategies, and channels that business has used to create the greatest successes. An analysis of the company’s strengths, weaknesses, opportunities, and threat should be given.

-- Organisation and Management: It includes the structure of company, details about the ownership of the business, descriptions of management team, profiles of top executives and an overview of their experience

-- Financial Analysis: Provide income statements; and cash flows for the analysis i.e. expenses/revenues/profitability projections. Develop a statement of cash flow to understand what the needs of business are now and will be in the future

-- Appendixes: Provide an appendix on business structure; back-up financials; and other documentation as appropriate such as press releases, historical Financial Statements, production flowchart