What is a good business plan?

A business plan is a document describing in detail how a business will achieve its goals.  It is mostly a document for new firms to lay out their written plans from financial, marketing and operational point of view. An established business can prepare a business plan when it is changing focus in a new direction.

What is a good business plan? It is that which includes all the information about business with an emphasis on finances.  A business plan best premium writing services should summarize the details about the available capital equipment and the way it will depreciate.  It should also provide details about all the loans and the time to pay off.

Other essential information to add into a business park are estimates of a break-even analysis estimating the time when a company is likely to make a profit. The break-even analysis should be based on a forecast (three-year) of sales and profits.

Project the sales and profits for every month of the first year and every quarter for the second and third year as Small Business Administration advice. Providing all the financial details in a business plan enables the writer to pinpoint the capital it needs to sustain continued growth.

A good business plan should include these sections to provide adequate information about a business.

Executive summary

This subheading is a summary of a single to four pages illustrating the standout points that will be in each of the ensuing sections of the plan. It should have details that can stand on its own as an independent document.

Business overview

A business overview offers a description of business including:

  • A legal structure
  • Type of business
  • Formation history
  • Location
  • Method of doing business such as a storefront operation, internet, storefront operation or mail orders.

Operations plan

 A part to explain to describe the way a business will function including the responsibilities for particular tasks and physical setup.

Market analysis

Market analysis includes an overview of the whole market with specific data, graphs or charts if they are appropriate.  Define the target market and the plans to cater to a particular audience.

Product and services

It describes products that a business has been manufacturing or selling or services it has been offering.  When writing this section, classify various types of products or services with a brief description of each.

Sales and marketing

 An outline of pricing and sales appears in sales and marketing. It should include rationalization on why customers will have an interest in buying the service or products, the way to reach them through efforts to market and advertize.

Competitive analysis

The role of a competitive analysis is to evaluate the strengths and weaknesses of the competitors whether direct or indirect. Demonstrate the way you will gain a competitive edge against the competition.

Management team

This part provides brief, relevant background information on all the key players in the business.

 Financial plan

  • A financial plan provides all information about finances from start cost by outlining these details:
  • The amount necessary to start a business. It could also be the money for business maintenance
  • Amount the company requires in the next two, three or five years
  • Plans to use the funds
  • Anticipate any need for additional funding
  • Recurring business expenses including salaries, promotional costs, insurance, etc.

 Projections

Projections provide a projected income statement as well as balance sheets for at least two years.

 At the end of a business plan, you can attach supporting documents that relate the issue in the business plan such as resume of top personnel, articles of the company, contracts and balance sheets among others.

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