Question

Define a business plan and mention the information you find in a business plan?

Answer 1

• A business plan is a comprehensive document describing in detail the plan of your business.
• The document shows what the business has set to achieve (goal) and how it sets to achieve the same.
• In definition, a business describes its products and services, how it shall earn (revenue structure), its expenses structure, its financing plan and operating model. In all, a business plan includes all the essentials required for a business to succeed.
• Business plan's are usually documented to attract investors to invest in the business, by creating a layout/ plan that is feasible for the company to carry out. Investors are thus able to make investing decisions based upon the business plans.

A business plan, in its simplest form shall include the following information:

• Executive Summary
• Company Overview
• Market Analysis
• Products and Services
• Financial Plan
• Marketing outline/ plan
• Operating plan

Executive Summary

The executive summary of the plan shall be to the point and interesting, making the reader interested in the business set out. This shall include the goals of the business, the product and services offered, its core team, target market, market plan, current position, future/ forecasted position and financials. In short, the executive summary shall show the comprehensive overview of the business.

Company Overview

The company overview shall briefly describe the functions that the company had undertaken and what it seeks to achieve further. It shall describe the vision and mission statements, the company's industry, its market size, business structure (for example if the company is an LLP, LLC or a partnership firm).

Market Analysis

The Market Analysis section shall in detail describe the potential of the market segment the company/ company's business seeks to cater to. This shall also include the company and industry's SWOT Analysis, describe the competitive advantage it holds and so on.

Product and Services

This section of the plan is very crucial, as the business' offerings - Product/ service is described in detail. This section should be specifically made interesting to attract readers and potential customers.

Financial Plan

The Financial plan of the business shall describe the financing allocation for each of the operating areas of the business. This may also include the financial structure of the company at present, and its future/ projected capital structure.

Marketing Plan

The Marketing plan is essential for the business, as the business must ultimately market/ 'sell' its products and services to its customers. There are 4P's to keep in mind - Price, Product, Promotion and Place (distribution) which must be addressed in detail in this section of the business plan.

Operating Plan

Last, but not the least, the Operating plan of the business shall describe the operating activities of the business. The operations such as equipment/ machinery, production, inventory, suppliers shall be described in this section.