7/14/22, 1:27 PM
Key Components of a Business Plan | Erich Merkner | Business
a Key Components of a Business Plan by erichmerkner | Jul 14, 2022 | Business, Erich Merkner
A business plan is a document that outlines the critical elements of a project or a business. It allows investors, lenders, and other key players in the business to evaluate the company before investing in it. There are no set rules for what should be included in any other important plan, but here is a list of key components that any company should include in its business plan. 1. Executive summary This is a brief overview of the entire business plan. It should highlight the business’s major products, services, and key strategies. Also, the executive summary section includes the company’s mission statement and vision. It should be written so that it can pass the test of time. Experts’ advice is that this section should be the last to be written and shouldn’t be more than four pages.
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Key Components of a Business Plan | Erich Merkner | Business
2. Financial plan This is perhaps the most significant part of a business plan. It should include details of the company’s future sales forecast, budgeted expenses, and projected profit and loss for a period of three years. It should also contain information about the amount to be raised and how it will be used as from where it will come from. One thing to remember, though, is that companies should avoid making their financial plan too detailed that they can’t change it in case the market behavior changes. 3. Management team A company’s management team is a reflection of its professional capacities. It is important to have a good management team that can identify the needs and wants of their customers. The business plan should include details about the company’s management team, including the key executives, their background, and qualifications. 4. Market and competition analysis A business plan should include an analysis of the competition the company is likely to face. This will help them know their weaknesses and strengths. It will also give them a glimpse of what they are up against. Also, it’s important to examine their market share, sales and profits, if any. 5. Company analysis This section gives details of the company’s history, business model, products, and services. It also covers any past, present, and future problems. This section should include a SWOT analysis of the company. 6. Marketing, sales, and product plan This is a detailed plan that includes the company’s marketing, sales, and product strategies. It should include details of how the business plans to make its products or services known to its target market. It should also have pricing strategies, distribution methods, and customer service plans.
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Key Components of a Business Plan | Erich Merkner | Business
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