analyze and discuss the components of a business plan and motivate why each component is important
Answers
please follow me
ok I am a brainilist
What are Business Plans?
Business plans are like road maps; it’s possible to travel without one, but it will only increase the likelihood of getting lost along the way.
Rather than putting yourself in a position where you may have to stop and ask for directions or even circle back and start over, entrepreneurs often use business plans to help guide them. That’s because they help business owners see the bigger picture, plan ahead, make important decisions, and improve the overall likelihood of success.
Why Business Plans is important?
A well-written business plan is an important tool because it gives entrepreneurs the ability to lay out their goals and track their progress as their business begins to grow. Formulating a business plan should be the first thing done when starting a new business. Business plans are also important for attracting investors so they can determine if your business in on the right path and worth putting money into.
Different types of components of Business Plans?
1). Executive Summary :
Executive Summary is the outline of your business plan. It’s objective is to sum up the focus points of your plan and tempt readers to go through the remaining plan. Executive summary too must contain the best parts of your business plan to grab interest of outsiders. It should be crisp and clear.
2). Company Summary :
This section again is included in business plans that are meant for the outsiders. You don’t need a company description for plans for internal use. Outsiders are interested to know everything about your company that helps them understand your business. An impressive company summary must give readers essential details.
3). Products Or Services :
This section must include detailed description of products or services you plan to sell. Again, this part of the business plan is more important to external readers than to internal users. Always specify product or service offerings in terms of customer needs that these fulfill. As you write the existing needs that your products solve, you can identify new customers and needs that your business can fulfill.
4). Market Analysis :
Well, this is the most important part of the business plan. In fact, it’s not a business plan, but an understanding of potential customers that you need at first place. Your very business idea must originate from a potential customer need. You identify a customer pain and think of a product/ service that could solve that pain. Then, you try to understand if their exist sizable customers who are willing to pay for such a product/service.
5). Business Strategy And Implementation :
Before defining the business strategy, it’s important to understand the value proposition of your business. What benefits are you offering to the customers, at what price as against the competition? How will your business offering better solve the problems of your target market against the competition?
6). Management Overview :
When it comes to people, it’s not as simple as identifying various functions in your company and assigning job roles accordingly.
When it comes to people, it’s not as simple as identifying various functions in your company and assigning job roles accordingly.Also, its not just about filling job positions with people. You need to ensure that right person takes up the right job in your company. For if there exists a mismatch, employees lose the motivation to work. As a result, the entire thing goes for a toss.
7). Financial Summary :
This is another important part of your business plan. As a startup, you need to plan for cash flow. How much do you need to meet your working capital requirements? This is where most of the startups go wrong or become complacent. Many startups run out of business not because they aren’t profitable. They do so because they run out of cash.