business plan components

business plan components

Business Plan Components

1. Executive Summary

For the business plan components included in the business plan template, the Executive Summary should be written last. The Executive Summary provides a general overview of your business. It is a concise synopsis of the entire plan and is written after the completion of the plan. It should briefly describe the business, its management, the market, and its financial projections. The Executive Summary should also include how and where the business will obtain financing. For a startup business, use of the SBA’s (Small Business Administration) or SCORE’s template for a start-up business is recommended. The first page should describe the business. In this description, include the purpose and mission of the business. The business’s objectives, whether they are short-term or long-term, should be clearly defined. This is key as the reader will know exactly what your business is trying to achieve. Next, your start-up business plan should describe the type of business you are trying to start. Your business may fall into a category that has not yet been defined. If that is the case, use a similar existing category and give reasons why a new category is not needed. This first page should also describe the location of your business. If your business is a virtual business, describe the solution that will provide end users with a URL to your website. This will show a clear understanding of what is involved in establishing a web-based business. The last portion of page one should define the probable time frame of implementing the business plan.

2. Company Description

We can say that this is the heart of your business plan. This is where you get to describe your company and what it does. This is how your company will be presented to the other businesses or the people who will approach you to go into business. With that being said, the description has to be thorough and represent the overall company. This is where you can really point out what separates your company from the rest. It should be as descriptive as you can get it so there is no confusion as to what or why the company does is. What the company does first must be understood by the writer of the plan. This should also include what your product is or what your services are. The main goal and reason for being considered a company is very relevant, and these are all things that should be addressed here. The company mission statement would be very relevant to this section so this would be a good time to include that. Company goals are also very important to add, to show where the company is looking to go. The next thing to be added would be a history of your company. If it’s a start-up, maybe why it started up and what the purpose was. If it’s a charity organization, what inspired the creation of it? If it’s raising money to donate to a certain cause, what was the inspiration to raise the money? Got the picture? If your company has been around for a while, that’s even better. You’ll have more history to write here. A general summary of the growth of the company should be provided.

3. Market Analysis

The first point of call here is to define barristers and legal services compared to solicitors and legal services. For the purposes of this business plan, a barrister is considered to be “public access” when they offer their services directly to the public, without the need for a solicitor. It is necessary to differentiate between types of barristers to avoid confusion between Public Access Barristers and traditional Barristers.

When a market analysis is conducted, it becomes understanding: – Who and what comprises the market. – Who are the potential customers? – How much power do the suppliers have? – The level of competition. – What is the economic environment and projection for the future? – What is the level of technology involved? – Is there any government intervention?

To run a successful business, it is essential that you understand your marketplace in order to develop the correct strategic plan and become knowledgeable to potential investors.

4. Marketing and Sales Strategy

Akaunting will rely very heavily on its website as the power mechanism in order to get their software product into the hands of prospective clients. The company has developed a sophisticated online software service that will allow the company to rapidly expand, and Akaunting’s website is, in fact, the software interface. All information and software content will be immediately available to prospective clients. It is the fastest, most cost-efficient way to distribute a vast amount of information internationally. The company will place a significant amount of investment in search engine advertising. All advertisements will lead to a company-designed informational website. Target keywords for search engine buys will be for people looking for accounting software solutions. All of the keywords will focus around a user trying to solve a problem. For instance, the keyword “small business tax accounting” might have a scenario attached to it, such as an owner of a frozen yogurt shop seeking a low-cost solution to managing taxes. The sales cycle for this product is a one-call close. No products will be sold without a qualified representative doing an online product orientation with the prospective client. This will allow the sales representative to focus on product benefits, customization of the product, and overcoming any buyer resistance. The customer will be able to sign up for a free product trial at the end of the orientation. This is a crucial step in the sales process. It gets the product in the hands of the client, and it has been found very successful in leading to a permanent product user.

5. Financial Projections

For a hypothetical business, our Excel-based cash flow projector produced the following financial projections. Based on total estimated sales of £850,000, direct costs of £550,000, and yearly indirect costs of £200,000, we expect to reach breakeven in the second quarter of the first year, and a cumulative profit before tax of £398,000 by the end of the first year. With a net profit margin of 9%, the company should be generating £180,000 net profit on annual sales revenue of £2,000,000 in year five. Multiple scenarios can be created by changing the forecast assumptions in the Input Sheet. This makes the projector a powerful tool and is the most efficient way to plan your business financially.

Creating financial projections is a crucial part of your business plan. If you’re seeking financing, financial projections help convince prospective lenders and investors that your business will be profitable by offering them a good return on their investment. Remember, however, that as the owner, you should be confident that your business will be (or already is) profitable; do not let yourself be overly influenced by the profit figures used by others in your industry if, based on a detailed analysis of your market, this is not a realistic outcome. Finally, remember that a business plan should be a living document. When you have real data, revise your projections.