Explain the Components of Business Plans.
Answer:
Business Plan:
A carefully constructed guide for a person for
starting a business.
Components of Business Plans:
1.
Introduction:
Basic information
of business such as; name, address and phone number of the business; the date
of the plan was issued and a statement of confidentiality to keep important
information away from potential competitors.
2.
Executive Summary
The executive
summary is a crucial part of the business plan. It is a synopsis of the main points of your business plan, highlighting the key
features. This is usually the first part of your plan that prospective investors will read and it must be
interesting and concise.
3.
Benefits to the Community
It includes all
information that how the business will have an impact on economic development,
community development, and human development.
4.
Company and Industry
It also important to show the background of the company
and choice of legal form, information on the product and service to be offered,
examination of potential customers, current competitors and the business’s
future.
5.
Management Team
In this portion of the plan, a
description of each member of the company management team is provided. It should
include their qualifications, accomplishments, and commitments to business
success.
6.
Manufacturing and Operations Plan
This step of business plan includes; Discussion of skills,
talents and job description of management team, managerial compensation,
management training needs, and professional assistance requirements.
7.
Labor Force
In this step the management discuss the quality of Skilled
workers available and the training, compensation, and motivation of workers.
8.
Marketing Plan
A marketing
plan is a business document written for describing the current market position of a business and
its marketing strategy. Marketing plans usually cover a
period of one to five years.
9.
Financial Plan
Financial planning is
the task of determining how a business will
afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the
vision and objectives have been set.
10.
Exit Strategy
An entrepreneur's strategic plan to sell his or her
investment in a company he
or she founded. An exit strategy gives
a business owner a way to
reduce or eliminate his or her stake in the business and, if the
business is successful, make a substantial profit.
11.
Critical Risk
and Assumptions
In this step the management evaluate the weakness of the
business and how the company plans to ideal with these and other business
problem.
12.
Appendix
The appendix consists
of an array of documentation that ranges from receipts and bank statements to
contracts and inventories. It should be used on an as-needed basis and include
only essential information.
Comments
Post a Comment