There are two common purposes of business plans:

1.      To assist the business owner to methodically analyze their idea of business, to know in advance what is good and what is not so good, and make informed decisions.

2.      To get funding by banks or any potential investors.

A well-prepared business plan serves as concrete evidence of the credibility and potential success of your business. 

Important Elements of a Business Plan

Executive Summary

It is the expression of your business plan. It should summarize your business idea, your market target, the amount you require and the purpose, as well as the major factors of success, in approximately one page. Though it is good to be written last, it is the most important part because it motivates the reader to proceed with the reading the plan.

Company Description

Such information can include the official name of the company, address, the form of business (sole proprietorship, partnership, limited company), mission, vision, objectives and core values.

Market Analysis

Here you explain the size, trends in growth and change in your industry. Examine the advantages and disadvantages of your competitors and determine a unique selling point (USP). Determine your target customers, their challenges and needs as well as how your business will meet their needs.

Organization and Management

Tell about your organizational structure and present the management team, their profiles and experience. Make it clear to clearly identify who does what to demonstrate the expertise and skill in your business.

Product Line or Service

Explain fully of the products or services you provide. Describe how they operate, why they are useful, what advantages they offer to the customers, and what they have in common with their competitors.

Marketing and Sales Strategy

Indicate the channels through which you will communicate to your customers (e.g. social media, online advertisements, or broadcast media). Write in your own words and describe your sales process, how you will turn leads in to customers, and how you plan to retain customers.

Financial Projections

This is the crux of your business plan. Create a financial projection of the next 3 5 years, projected-income, expenses, cash flow, income statement, balance sheet. When you are looking to secure funds, ensure you state how much is required and how you will use it.

Conclusion

A business plan is not a document that ceases to be written. It should be a dynamic document that must be reviewed and updated regularly in relation to the changing business circumstances. This way, you make sure that your business remains on the right track and develops on a sustainable way. 

Dr. Ye Linn