What does an effective business plan contain? | SupportBiz

Managing Growth

What does an effective business plan contain?

 
Writing a business plan is a very important step in the establishment of a start-up, or an existing firm looking for funding in anticipation for further growth. An effective business plan will hit the right chords with the investors and other parties, and inspire them to be associated with the firm.

SupportBiz sheds light on the important constituents of an effective business plan.

Executive summary

The executive summary is an outline of all the other sections in the plan, intended for busy professionals to get a bird’s eye view of the entire document. It is the first section of a business plan, usually written at the end.

Company description

The company description is typically the second part of a business plan. It includes an overview of the firm – where it is located, how big it is, what it exactly does, and how it intends to grow in future.

Products and services

The next section in the business plan describes in detail the different types of products and/or services that the firm offers. It also lists the value that each of these products and/or services provides to its customers.

Industry analysis

This section provides a detailed analysis of the industry in which the firm works, and the market. It should be supported with the necessary statistical figures.

Marketing strategy

This section clearly indicates where the firm stands in relation to the industry, and how it intends to penetrate the market. It includes the pricing and promotional strategies of the firm.

Management summary

The management summary is nothing but an overview of the people involved in the management of the firm. It includes the names and designations of the internal and external parties involved, and a brief background of these parties.

Financial summary

This section indicates how the firm is funded presently, an estimation of the current operating incomes and expenses, and the amount that will be needed for the kind of future growth that the management has in mind.

Appendices

This section includes information that supports all the statements made in the rest of the business plan. Research data, photographs, graphs and charts as well as any other relevant material can be presented under this section.