What is the basic structure of business plan?

Answer 1

A business plan is a document that details how you will handle all the important areas of your new or existing business. It actually combines several other smaller plans for each of the business areas.

The following are the generalkey areas of a business plan.

Executive summary

This gives the reader an overview of the whole idea of your business. Although its classe as the very first section it wise to write it at the very end when youve created all the other sections so that these "feed in".

The Business Profile

This describes your business. It will include the business trading name, where the business is located (its address) and what the business does. It will frequently include information about the business owner(s), such as their expertise in the business line, experience and education. This will then set up a sound footing from which the business will develop and operate.

The Product or service and market analysis

This identifies, describes and analyses the products and services you offer or intend to offer, your target market (who you plan to aim the products or services at, your market share which is calculated against what otehrs are doing the same type of business against the same customer base and you will need to investigate who are your competitiors listing these as well to prove that you have considered their actions on your business and remind you to "keep a check" on these in future. Using this analysis will allow you to, within reasonable parameter make decisions about how you will be pricing products and services and of course to ensure that your business is in the right location to make the best of the market share.

Marketing plan

This plan gives an outline of your marketing to attract new customers AND KEEP existing ones. Its important in your marketing plan to consider how your product or service(s) will from what's already available. You would be wise to highlight this to any reader especially those who may have to invest in te busienss like a Bank Manager.

A Legal and risk management plan

This must include information about your business structure, name its registered under and when any required licences to allow you to proved the product of service. This is especially important at national and local levels as they can frequently differ. The Ris Management also identifies things that could affect your business and describe how you will deal with them i.e. All you business accounts are electronic so putting in place a back up system to keep data vital to Tax agencies, customers, suppliers and even Accountants is recrded and shows you have considered what can happen and have a plan in place to recover. In basic it will help you to identify opportunities for your business and reduce the potential damage could cause.

Operating plan

This simply summarises how your business will work including information on; how your products are made or services are provided. It includes details of your premises and lease/rental/ mortage terms, the equipment you have to do the job, materials, labour, which can include how many full part time and temprary staff youll be using, technology required i.e. servers or just a lap top and environmental concerns. This now is VERY important. Anything you produce that has a waste factor has to have a plan to deal with it even how you plan to be economical with utilities like electric and water An operating plan is essential for smooth day-to-day running of your business and actually helps to provide new staff with a concept of what you want from then as an over view of the business.

Management and personnel plan

This plan will review staff functions, job descriptions (roles and responsibilities), human resource policies, workforce planning and training. Your and your staff credentials are crucial in the success of your business.

Finance plan

This plan lists the costs for establishing your business, the sales needed to break even, your projected cash flow, funding arrangements, and repayment plans. Your finance plan is important in securing funding and attracting such thing as partners or shareholders, and it's essential that this plan is accurate. It is also one of the hardest things to establish from a new business as many new business tend to over estimate income and end up having less money than was expected. It also tells people like a Bank Manager that you have been careful in what you expect without under estimatnig how well your sevices or product will be received.

Action plan

The action plan will identify the tasks you need to complete to achieve your goals, including the resources you need to get there. It is also wise to set in stone a timeframe to review the action plan to make sure that you know where you are and then you ccan make ammendments to the plan to show that may need to change some of the actions to get where you need to be. Remember, the action plan is basically a road map to help you get from the start of each year to the end and it is very acceptable to record changes in the plan because youve identified issue that have occured along the way that will impact on the business.