Elements of Business Plan - Coggle Diagram
Elements of Business Plan
-Executive Summary or Basic Information
This is short and contains the business name, a brief history, the legal structure, the product or service being sold, the resources needed and where these will come from, and a quick statment about hopes for the future. It will contain a brief statment of the purpose and the objectives of the business.
This is often an acccount of the marketing mix the business will use. This will tell interested people where the product/service will be positioned in the market. It will include detail about the price, the promotion methods to be used, the way the product/serice will be distributed to the target customer an what selling methods will be used. This section will focus on how the busienss will meet the needs of its customers.
This section will tell readers how the product/serice will be produced. It will include any patents held, the premises and equipment needed, details of suppliers and how quality will be maintained.
This section deals with the people in the business. It might include names, abilities and experience. It will show how people will be organized and managed and include training arrangements. There might be an organizational structure diagram.
The key part of the section will be a monthly cash flow forecast for one-two years, suing information drawn from all the other areas of the plan. There will also be a profit and loss forecast. This will enable the financing needs to be clearly defined.
2 advantages for a well-established large business to use a business plan
set out how to implement a new project, including obtaining finance.
tendency to just carry on with the same procedures year after year, so a business plan will make sure that the business reviews what it is doing at regular intervals
-Product or Service
A detailed outline of what will be sold and what market it will be placed in. The focus should be on how the product/service meets a market need and how this is different from any competition. It might include any patens, copyrights or trademarks.
An account of the market that might include details of the size, the compeition, the target customer, market trends and future developments. Some indication of maret research might be present.
2 advantages for a small business to use a business plan
it provides a focus for all the activities needed to operate and makes a business consider all the details involved.
get finance from hard-headed banks or venture capitalists who need to be convinced that the business is financially sound