Key Elements of a Business Plan

1- Executive summary

The purpose of an executive summary is to provide an overview of your business to potential investors. This overview summarizes business activities, business vision, product or service description, target market, marketing plan, financial situation, and its future projection, and income forecast.

2- Business description

In this part, the business owner introduces himself, business partners, and other key players in the company.

3- Market strategy

Market analysis provides in-depth information about different aspects of a market. How big is the market? Who are the competitors? What is the competitive advantage? The market analysis defines the best market strategy.

4- Competitive analysis

The detailed analysis of your competition helps you to define the competitive advantage of your company. The purpose is to define the strengths and weaknesses of your competition and defining strategies to face the competition.

5- Product or service description

Its purpose is to provide a detailed description of the product or service and its key features.

6- Operation and management

It outlines the key responsibilities of the management team and each department in the company. It should provide in-depth information about your supply chain. It also provides detailed cost analysis for business operations. A few operational components of a business are producers, manufacturing, equipment, transportation, and inventory.

7- Financial factors

This section provides a cost and benefits analysis of your business. It outlines all the pathways and channels that your business is going to generate profit. Three main elements of finance should be defined here including profit and loss statement, balance sheet, and cash flow.

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