What is the purpose of a business plan?
A great business plan has three goals that it needs to achieve. First it should identify a common set of goals for the management team to aim for, and unify the management team in working to meet those goals. Secondly it should evaluate the feasibility of the business and determine if there is a realistic chance of success. The third purpose of the business plan is to serve as a sales document. The business plan is a means to attract professional investors to your project and keep to business email etiquette. In order to accomplish these goals the business plan identifies those involved in the project, and provides a profile of the company. Various factors that will affect the business should be identified, and potential risks evaluated. Moreover, it’s worth visiting our site where you may get additional information about great importance of e-mail subjects.
How to structure a great business plan
Writing a great business plan involves assembling your data and information into a format that is easily read. Potential investors should be able to quickly scan and identify major elements in the business plan. The basic outline a business plan should follow is shown here:
- Executive summary – Communicate what your company does, how it will make money, and why consumers will want to buy your product. Clearly state what you are asking for and how much.
- Business description – Begin with a brief description of the industry, its present outlook and future potential. Cover all industry areas and developments that may benefit or adversely affect your business.
- Market strategies – Market analysis defining all aspects of the market.
- Competitive analysis – Strengths and weaknesses of your competitors
- Design and development plan – Provide a product design description, chart product development and create a development budget.
- Operations and management plan – How the business will function including logistics and management tasks.
- Financial factors
Important elements of how to write a great business plan
When developing a great business, plan there are many different factors and elements. Keeping these elements in mind during the preparation of your business plan can be helpful. These include the following:
- People involved – Are they familiar with the industry? Are they known in the industry? Have they worked together before? It is not uncommon for investors to proceed with a plan based on the team of people involved. A team that has worked together before and has a proven track record will be more likely to attract investors.
- Potential returns – Regardless of any analysis, charts or graphs investors will consider any projection of income little more than a guess. An overly high income projection may have investors considering if you are living in a fantasy world.
- Risks – Be honest in assessing serious risks. Don’t hide them. Bring them out into the open and provide realistic methods and plans to deal with them.
In addition, we’ve prepared a few tips on sales letter writing.
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