The business plan is the road map of the business and if properly used, it can be a useful instrument constantly helping the entrepreneur to reach his or her objectives and to offer benchmarks to determine if the company is headed in the right direction.
A business plan is comprised of 5 to 10 separate chapters, each of them presenting in detail different aspects of the business. Depending on the business idea some chapters can be combined or eliminated altogether.
There is no standard order in which the chapters are elaborated. However, the only thing you have to take into account is that the executive summary should be done once all the chapters are completed. This way you are able to have a clear picture of the business.
- Executive summary
- Company description
2.1. Mission statement/Values
2.2. Brief history
2.3. Objectives
- Products and services
3.1. Characteristics
3.2. Benefits
3.3. The development stage
3.4. The utilized technology (if required)
3.5. Future products and services
4. Market and industry analysis
4.1. Market share and growth potential
4.2. Target audience
4.3. Market segmentation
4.4. Needs
4.5. Trends
4.6. Industry analysis
4.7. Competition
4.8. Opportunities present on the market
5. Strategy and implementation
5.1. Offered value
5.2. Competitive advantage
5.3. Marketing strategy
5.3.1. Positioning
5.3.2. Product and/or service strategy
5.3.3. Price strategy
5.3.4. Distribution strategy
5.3.5. Promotion strategy
5.3.6. Marketing programmes
5.4. Sales strategy
5.4.1. Sales forecasts
5.4.2. Sales programmes
5.5. Strategic partnerships
5.6. Monitoring and evaluating system
6. Management
6.1. Organizational structure
6.2. The management team
6.3. Recruitment and training plan
7. Financial planning
7.1. Key financial indicators
7.2. Financial forecasts
7.3. Cash flow forecasts
7.4. Cost-benefit analysis
7.5. Funding sources
7.6. Risk management
7.7. The Funding stage
7.7.1.The necessary funding amount
7.7.2. Funding solutions
Annexes
Mandatory
- Financial forecasts: 3-5 years
- Cash flow forecasts
- The CV’s of the Management team
Optional
- Market research results
- Operational plans
- Any other materials that can offer relevant information for the ones that will read and evaluate the business plan.
