The key elements of a business plan are much the same,whether for a large business or a small business. This doesn't mean your business plan must be as thick as that of a Fortune company, but it should include the same elements found in the business plans of business giants such as GM, Apple, and CBS.
You are thinking that you and other entrepreneurs you know have never developed a business plan and you are doing "ok" -- right? Well, here is the big secret -- you can always do better. I know for me -- "ok" simply is not good enough. You may think this is normal for a first time entrepreneurial adventure.
But what if I told you that Carl has started many companies in his year tenure as an entrepreneur? And with all the companies Carl started, none of them have ever exceeded revenues of a million dollars. Many of them failed and Carl was forced to shut them down within the first year of business.
Does this mean Carl is a terrible businessman? What it means is Carl did not understand the purpose and the value in creating a business plan. And unfortunately this is pretty typical of many entrepreneurs. They think flying by the seat of their pants and relying on their street smarts and intuition is the spirit behind entrepreneurship.
This could not be further from the truth. If you don't plan for growth. Now I know what you are thinking. You are thinking that you and other entrepreneurs you know have never developed a business plan and you are doing "ok" - right?
Well, here is the big secret - you can always do better. I know for me -- "ok" simply is not good enough! And if you don't plan for growth you may grow, but chances are good you will not be able to sustain it.
Planning for growth is essential. According to Price-Waterhouse-Coopers, two-thirds of CEO's of fast growth organizations develop some type of business plan. It is actually the exercise of drafting the business plan that is important -- sometimes more important than the plan itself.
Writing a business plan forces you to focus on the important and essential elements of your business. It makes you think through your next steps and specific strategies and tactics.
But most importantly it forces you to face the facts. Because the most important element in success is this: This does not mean when the facts suit you -- it means all the facts all the time.
I know so many entrepreneurs and business owners who make excuses for all the failures within their business. Sadly so many of those failures could have been avoided with the construction of a business plan. Within the overall outline of the business plan, the executive summary will follow the title page.
The summary should tell the reader what you want. This is very important. Clearly state what you're asking for in the summary. The statement should be kept short and businesslike. Within that space, you'll need to provide a synopsis of your entire business plan.
This section should illustrate your knowledge about the particular industry your business is in. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to collect its share of sales.
A market analysis also enables the entrepreneur to establish pricing, distribution and marketing strategies that will allow the company to become profitable within a competitive environment.
In addition, it gives one an indication of the growth potential within the industry, and this will allow you to develop your own estimates for the future. Begin your market analysis by defining the market in terms of size, structure, growth prospects, trends and sales potential.
This section should include a high level look at how all of the different elements of your business fit together. The company description should include information about the nature of your business as well as the crucial factors that you believe will make your business a success.
This section includes your company's organizational structure, details about the ownership of your company, descriptions of your management team and qualifications of your panel of experts or board of directors. This is the lifeblood of your business.
Marketing creates customers and customers generate sales.The Elements of a Business Plan: First Steps for New Entrepreneurs Cole Ehmke and Jay Akridge Content: Outlines the basics of a business plan Outcome: Readers will understand the purpose of and elements required to write a business plan for a new venture By organizing your thoughts on a possible business venture into a business plan.
Jun 25, · 7 Elements of a Business Plan Your well-thought-out business plan lets others know you’re serious, and that you can handle all that running a business entails. It can also give you a solid roadmap to help you navigate the tricky waters.4/4(26).
Your business plan is the first serious step toward starting a new business. A large majority of businesses fail in the early stages, but you can increase the odds for success if you properly plan. Developing a business plan without knowing the basic elements can be challenging.
You need to structure your document in a way that persuades potential lending institutions and investors to. 9 Most Important Elements of Every Start-up The best businesses are based on stronger stuff than just your 'vision.' Bring together these nine ingredients and you're well on your way. A business plan is a description of the business, a road map that will help you get to your desired destination.
It gives you an idea of the obstacles that lie ahead .