Business Plan Components
- Business Concept
- Management Capabilities
- Corporate Structure
- Competitive Analysis
- Marketing Plan
- Financial Projections:
- Sales Forecasts
- Cost Assessment
- Capitalization Requirements
In order to prepare a
comprehensive business plan - as burdensome as it might
appear - there are some key areas to address.
- It is important to clearly articulate what kind of
business you are engaging in. While that may seem obvious,
thoroughly developing your business concept will highlight
what requirements may apply as well as providing investors
with confidence of your vision.
- The ability to pull off a complicated business venture
is often the biggest weakness of any new or changing
business. Be realistic about whether you are capable
of handling tasks outside of your skill base. Plan to
- Explore various organizational structures. Each is
designed for specific situations and you will want to
identify the best for you.
Considerations - Run through all the day-in-day-out
details of your business. Things like production material/inputs,
labor requirements, timing constraints, cash flow considerations,
distribution requirements, administrative functions
- may all prove incredibly costly if you have not thought
through how they will be handled.
- Know what your competition is up to. You can be sure
that if your business concept has no rivals, it will
as soon as you are successful. Always study the competition
in an effort to differentiate your business and make
it more appealing.
- Understanding your constraints in the market and how
you may best serve your customer is critical to developing
a successful marketing plan. Do your research.
- Financial projections, which includes sales forecasts
and cost assessments, will tell you what to expect financially
and provide direction in budgeting. Be sure to update
your projections as real costs and revenues become apparent.
Reviewing financial ratios can point to weaknesses that
must not be ignored.
- Before starting any venture, it is important to understand
just how much money you need to make the venture successful.
After managerial capabilities, the next greatest reason
for failure is not having enough money.