What are the main components of a business plan?
Typically, a business plan contains a series of mandatory components:
• summary business plan;
• plan content;
• product presentation company;
• Target market and competition;
• manufacturing process and suppliers;
• Marketing strategy;
• expected sales;
• financial forecasts;
Inside a summary business plan?
Summary business plan must contain a summary form data:
• Company history (if existing companies);
• field / fields of activity;
• Company mission, long-term objectives and short-term
• senior staff (experience, results);
• characteristics of the product / service;
• Market description (growth prospects, competition);
• summary financial projections and the amount of money requested.
2 What the description of the company?
For existing companies, a presentation of the past should be firm and of its performance. This presentation should include references to:
• Company Management: responsibilities, training, experience / previous employment (may be attached and CVs of key persons involved in the activity). Presentation of the company’s management / business of the initiators is required even if the new business.
• Contribution of owners / managers of the company’s capital. A significant participation can be interpreted as a clear sign of interest and involvement in the business owners, representing one of the keys to its success.
• Number of existing employees. It may be a breakdown fields (eg direct productive staff / staff), level of training, etc.. As an additional annex may be submitted to the company organizational chart.
• Products / Services today (list, characteristics, profitability, competitive advantages).
• Location of activity and the implications of this situation (eg on utilities, labor, etc..).
• The main suppliers of raw materials (listing, the share of each, possibly data on their form of ownership and geographical location – can be relevant, for example, the distinction between internal and external providers and, if the latter, between those European Union countries and those in other parts of the world).
• Acquisition of machinery, vehicles etc.., Buildings owned (must specify whether they are company owned or leased or acquired by lease only).
• existing customers. Guarantee the future of any company is the market orientation for this reason, the company must demonstrate a good knowledge of its customers. Where there are few customers, data can be presented at each (share in total sales, ownership, geographic location, etc..). If it is, for example, retail outlets, will be presented data characterizing the group / customer groups (average number of customers, average sales to a client characteristics of age, social status, etc..).
• Major competitors (list, their market share and firm position towards them, explanations for this situation).
3 How to set business objectives?
The business plan must demonstrate that the project promoters have a clear idea of what they propose to accomplish. A financier who reads a business plan to see which business goals and objectives are in the following months or years to come. Will be submitted mission / primary purpose of the company, its medium-term objectives (where we want to go in the next 3-5-7 years?) And short-term (that is to do right?).
The strategy to achieve these goals should also be presented in a convincing way. Presentation of company objectives must avoid vague or overly optimistic expressions. Formulations that would suit any area of activity – or only in an ideal world – is a testament to the lack of a coherent strategy.
It’s better to avoid unnecessary details or too technical aspects. However, those who read the business plan must understand the main ideas of the business.
4 How do you present your product?
It is essential to make better understood the needs of consumers who respond to your product / service.
The business plan should provide a sufficiently detailed description of the product / service company. If a potential investor does not understand what the product, they may not have the opportunity to provide further explanations. If it is a product / service existing business experience can be presented in the field, existing production capacities, technical skills learned, etc. in sales performance. If it is a new product / service will be presented that allow the firm to obtain its benefits and actions that need to be taken before the start of normal business. Can be attached to a special budget of the work required to exit the market or a research budget. The existence of a patent or other proprietary rights on the product or service is an asset to the firm and will certainly be mentioned in the business plan.
Product quality and price are key issues that are present in any business plan. They are essential in positioning the company to customers and competition. A grade represents an increased risk of losing customers to competitors, while improving product costs will be recovered if perceptions do not meet customers. The image quality of the product can be enhanced by guarantees or other aftermarket services provided. Choice of product price is extremely important, many models of business plans suggested by donors require assessment of the price of the product compared to the competition. If the price is higher, you must show that it will cause customers to buy from you. What matters is the profitability that can bring the product to a certain price level. If you have multiple products or services, will present specific characteristics and the estimated proportion of total sales. Orientation towards a single product or service is a risk, especially if the market is narrow or rapidly changing consumer preferences. Meanwhile, extending the areas where you experience is also a risk. A product or service easy to counterfeit and might not provide sufficient protection from the competition.
Various documents are too technical to be attached to the business plan – or can be downloaded in a feasibility study.
What are the main components of a business plan?