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features of a business plan - Coggle Diagram
features of a business plan
advantage for a small business
Faster response time to customer needs.
it is less likely that difficult customer problems will fester because the owner will know sooner and take action.
You can handle clients’ questions and concerns immediately.
Customers know that they can get in touch easily with you – the owner – to help them solve their problems with your product or service.
advantage for a well-established large business
Competitive pricing.
For example, in food product development, larger companies have a pricing advantage because they have access to more equipment, they can do larger runs and save money on items per piece.
Agility.
This agility comes in handy when something disrupts the industry, such as a new technological development or an even newer competitor. Big businesses must absorb the blow and respond slowly as their massive gears begin to turn. As a startup, you can turn on a dime and rebuild everything from the ground up, if necessary.
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.
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.
Market Analysis
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.
Marketing Plan
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.
Production Plan
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.
Organizational Plan
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.
Financial Plan
The key part of the section will be a monthly cash flow forecast for one-two years, suing ifnroamtion drawn from all the other areas of the plan. There will also be a profit and loss forecast. This will enable the finacing needs to be clearly defined.