A business plan is a document that describes a new business, its products or services, how it will earn money, leadership and staffing, financing, operations model, and other details that are essential to both operation and success. Most business plans cover the company's first three to five years.
A business plan guides you through each stage of business from starting,managing and growing a business it acts as a road map for your business,its a way to think through the important element of your business,business plan also can be used when you decide to ask for a loan from bank
Format or structure of good business plan ,get to know what to include in business plan
1.Executive summary.
2.Company/business description.
3.Market analysis
4.Organization and management
5.Products/service line.
6.Marketing and sales.
7.Funding request.
8.Financial projection
9.Appendix
As shown above is the summary on tradition format of business plan,let me explain in details here down one by one in order you can understand it well
1. Executive summary
In short explain to your readers what is your company and why it will be successful,Write about your mission statement,Your product or service,company leadership team,employees and location,financial information if you plan to be financed.
2.Business description
Describe your company,Give details about the problems your business solve,where is the location of store,who are your consumers,or to which business you serve ,Explain the competitive advantages your business will use to win,If there is any expert in your team mention,
3.Market analysis
You have to understand well your business type,what kind of products or service you offer,what is your target market,Understand what your competitor do,what is their strengths and their weakness,Look for the way to do it better and list your new strategies you think can make your business win the competition.
4.Organization and Management
Tell your readers how your Company will be structured and who will run it,List the leadership structure for your company,State if your Company intended to incorporate as C or S corporation ,specify if is general or limited partnership,or if you're a sole proprietor or LLC.
Use an organizational chart to lay out who's in charge of what in your company. Show how each person's unique experience will contribute to the success of your venture. Consider including resumes and CVs of key members of your team.
5.Service or product line
Describe what products you sell or what services you offer,explain how your products or services benefit your customers,explain your product life cycle,share your development research you have done about your products and services,Share your plans for intellectual property, like copyright or patent filings.
6.Marketing and sales
There is no single way to approach the market,Your marketing strategies should change to fit the unique customers need.Your goal in this section is to describe how you'll attract and retain customers. You'll also describe how a sale will actually happen. You'll refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies.
7.Funding request
If you're asking for funding, this is where you'll outline your funding requirements. Your goal is to clearly explain how much funding you’ll need over the next five years and what you'll use it for.
Specify whether you want debt or equity, the terms you'd like applied, and the length of time your request will cover. Give a detailed description of how you'll use your funds. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Always include a description of your future strategic financial plans, like paying off debt or selling your business.
8.Financial projection
Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.
If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. If you have other collateral you could put against a loan, make sure to list it now.
Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections, and match them to your funding requests.
This is a great place to use graphs and charts to tell the financial story of your business.
9.Appendix
Use your appendix to provide supporting documents or other materials were specially requested. Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, or patents, legal documents, permits, and other contracts.
DOWNLOAD SAMPLE OF BUSINESS PLAN
Sample of business plan
Andrew's example
 |
| About business plan |
A business plan guides you through each stage of business from starting,managing and growing a business it acts as a road map for your business,its a way to think through the important element of your business,business plan also can be used when you decide to ask for a loan from bank
Format or structure of good business plan ,get to know what to include in business plan
1.Executive summary.
2.Company/business description.
3.Market analysis
4.Organization and management
5.Products/service line.
6.Marketing and sales.
7.Funding request.
8.Financial projection
9.Appendix
As shown above is the summary on tradition format of business plan,let me explain in details here down one by one in order you can understand it well
1. Executive summary
In short explain to your readers what is your company and why it will be successful,Write about your mission statement,Your product or service,company leadership team,employees and location,financial information if you plan to be financed.
2.Business description
Describe your company,Give details about the problems your business solve,where is the location of store,who are your consumers,or to which business you serve ,Explain the competitive advantages your business will use to win,If there is any expert in your team mention,
3.Market analysis
You have to understand well your business type,what kind of products or service you offer,what is your target market,Understand what your competitor do,what is their strengths and their weakness,Look for the way to do it better and list your new strategies you think can make your business win the competition.
4.Organization and Management
Tell your readers how your Company will be structured and who will run it,List the leadership structure for your company,State if your Company intended to incorporate as C or S corporation ,specify if is general or limited partnership,or if you're a sole proprietor or LLC.
Use an organizational chart to lay out who's in charge of what in your company. Show how each person's unique experience will contribute to the success of your venture. Consider including resumes and CVs of key members of your team.
5.Service or product line
Describe what products you sell or what services you offer,explain how your products or services benefit your customers,explain your product life cycle,share your development research you have done about your products and services,Share your plans for intellectual property, like copyright or patent filings.
6.Marketing and sales
There is no single way to approach the market,Your marketing strategies should change to fit the unique customers need.Your goal in this section is to describe how you'll attract and retain customers. You'll also describe how a sale will actually happen. You'll refer to this section later when you make financial projections, so make sure to thoroughly describe your complete marketing and sales strategies.
7.Funding request
If you're asking for funding, this is where you'll outline your funding requirements. Your goal is to clearly explain how much funding you’ll need over the next five years and what you'll use it for.
Specify whether you want debt or equity, the terms you'd like applied, and the length of time your request will cover. Give a detailed description of how you'll use your funds. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Always include a description of your future strategic financial plans, like paying off debt or selling your business.
8.Financial projection
Supplement your funding request with financial projections. Your goal is to convince the reader that your business is stable and will be a financial success.
If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. If you have other collateral you could put against a loan, make sure to list it now.
Provide a prospective financial outlook for the next five years. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly — or even monthly — projections. Make sure to clearly explain your projections, and match them to your funding requests.
This is a great place to use graphs and charts to tell the financial story of your business.
9.Appendix
Use your appendix to provide supporting documents or other materials were specially requested. Common items to include are credit histories, resumes, product pictures, letters of reference, licenses, permits, or patents, legal documents, permits, and other contracts.
DOWNLOAD SAMPLE OF BUSINESS PLAN
Sample of business plan
Andrew's example
About the Author
Mussa Msemakweli is a technology entrepreneur, Book writer and digital marketing expert. He is currently C E O at the Africa shared . His work has been featured in a number of publications, including the Maisha halisi Magazine and on Culture trip. If you have a good time follow me on facebook and instagram or leave a comment, Thanks.
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