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Business Plan, A small business to use a business plan (advantages), A…
Business Plan
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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 patents, copyrights or trademarks.
Market Analysis
An account of the market that might include details of the size, the competition, the target customer, market trends and future developments. Some indication of market research might be present.
Production Plan
This section will tell readers how the product/service will be produced. It will include any patents held, the premises and equipment needed, details of suppliers and how quality will be maintained.
Financial Plan
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.
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.
Marketing Plan
This is often an account 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/service will be distributed to the target customer on what selling methods will be used. This section will focus on how the business will meet the needs of its customers.
A good business plan can contribute to the achievement of high sales, which can lead to higher profits. This benefit is essential for small businesses because it can help businesses to establish in the market and have enough capital to survive.
A good business plan can help a small business quickly respond to market change because the business plan can help the business track the market change and promptly change the marketing method. This is important to small businesses since it can reduce the risk of deviation of market demand, leading to business failure.
A good business plan can represent to the business what the product is worth producing. Since the business has limited resources and labor force, it is important for an established business to commit to producing products with maximum profit, which can lead to a higher gain.
A business plan can help a well-established business to manage the business as a whole because there are many departments under a well-established business. This is important because it can maximize the business's efficiency, which is essential for the long-term development of a business.
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