Business plans are formal statements of business goals – namely, evidence that they are attainable & a plan for reaching them. Additionally, the plan may contain information about the individual or individuals who are starting the business.
At a minimum, a business plan should contain the following elements:
- A formal statement of a group of company objectives
- The reasons why the above are supposedly achievable
- The scheme for accomplishing the objectives
- The arrangement might additionally consist of background details concerning the company or group trying to achieve the goals
- The plan might additionally target fluctuations in insight and branding by consumers, clientele, bigger communities, or taxpaying individuals
While the existing organization is to undertake a vast modification or while planning a new project, a three to five year business plan is necessary because each investor will watch for his or her yearly ROR (Rate of Return) on any investment in a three to five year period.
Typical Business Plan Structure for a Start Up
- cover page and table of contents
- executive summary
- mission statement
- business description
- business environment analysis
- SWOT analysis
- industry background
- competitor analysis
- market analysis
- marketing plan
- operations plan
- management summary
- financial plan
- attachments and milestones
Typical Questions Answered by a Start Up Business Plan
- What problem does the company’s product or service solve? What niche will it fill?
- What is the company’s solution to the problem?
- Who are the company’s customers, and how will the company market and sell its products to them?
- What is the size of the market for this solution?
- What is the business model for the business (how will it make money)?
- Who are the competitors and how will the company maintain a competitive advantage?
- How does the company plan to manage its operations as it grows?
- Who will run the company and what makes them qualified to do so?
- What are the risks and threats confronting the business, and what can be done to mitigate them?
- What are the company’s capital and resource requirements?
- What are the company’s historical and projected financial statements?
You should also read the following: http://nutsandbolts.mit.edu/resources/Guidebook.pdf
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