What are the components of a business plan?

What are the components of a business plan?

Building a business plan is not to be underestimated, while some businessmen see it as formal matters that lack the sparkle of speeches or glamorous pictures and videos. The business plan is very important.

Not only is it sold to investors, and it addresses the vision of customers and employees, it determines what the business will look and how it will be done.

Business plans can be long, complex and arduous in writing, so we highlight to you the five most essential elements that must be included in each business plan, regardless of the project.

Visualization

The main purpose of the business plan is to give readers a thorough understanding of the company's goals and how they will be achieved, presenting the visualization is the best opportunity to achieve this, usually this part of the business plan is divided into three elements: executive summary, company description and products / services.

Market analysis

Entrepreneurs must demonstrate their understanding of the market to be involved in, analyze and detail the market and demographic of the target audience / provide an overview of the industry, and can include details about competition, and go deeper into market valuation, that will be more close to the target audience for purchase.

Strategy

Investors want to know the essential details of the company’s implementation plan and what will it do to achieve success, for example, if a businessman will offer a cooking stove that does not smoke, he must explain to the businessman why this stove works better than others as a product and as a business, why is this product effective? How will it be sustainable? How will this business be in the next six months, after a year?

Organization

This item allows obtaining detailed reports of how the company is operating, it is a smart step to clarify how the company will grow once it gets a certain amount of financing or reaching the amount of revenue, it may also help a number of consultants or consultants to work alongside the founders, this It can give credibility to an unknown project as well as provide a full disclosure of any potential conflicts.

Finance

Business plans also need to show how the idea is a good business idea, and therefore financial analysis is crucial, and this applies in particular to starting to try to sell the plan to investors, and entrepreneurs who do not have any previous financial data that can be consulted, and the draft budget for years The next five are built on the basis of expected growth, and often the business plan may be borrowed from an accountant or other financial professionals who can testify to the numbers and prove that they are not suspicious or just optimistic and ambitious

Components of a business plan:

Operational plan:

Operational plan is defined as the process of linking strategic goals and objectives to tactical goals and objectives, and a description of the operational procedures and flow of operations. It describes the phases and conditions of success and explains how a business plan, will be put into operation during a given operational period, in the case of commercial application, fiscal year or any specific extent.

Objectives of the Operational plan

Operational plan simulates and sequence specific and coherent activities in a structured manner to achieve specific competitive priorities as follow:

The operational plan rationalizes the use of the organization's resources for added value.
The operational plan ensures optimal performance towards the achievement of strategic objectives within the available realistic data.
The operational plan promotes for achieving excellence: possessing the ability to carry out activities leading to a high degree of quality.
The operational plan functions are summarized as follows:

Confront uncertainty and change.
Focus attention on goals.
Access to economic employment.
Facilitate the monitoring process.

Technical plan:

The technical plan is important in companies and institutions, where technical plan enters into many business objectives and has become the basics of work.

The technical plan is the process of collecting the elements of the plan of action, and processing all the elements needed for processing, measuring and modification, by relying on ideas and personal experiences, to produce something new and distinct, performs its tasks and meets the goal of its technical design.

The importance of technical plan lies in its essence of providing the technical plan to operate the business. The technical plan describes the flow of activities within the business. Which is why the technical plan is important to understand the flow of activities within the technical plan.

Financial planning:

Financial planning helps you to effectively manage your company's finances, improves simple and complex financial decisions. It also helps to control your company's finances and avoid improper decisions such as over-borrowing or relying on debtors to manage your company. Financial planning as part of components of business plan when preparing business plan ensures that you have the right amount of money in time in the future to achieve their specific financial goals

Financial planning means the preparation and pre-preparation of the financial goals of the company you want to achieve through the development of a proactive and deliberate financial plan that shows the way through which you will be able to achieve the objectives according to the operational plan and technical plan and as a general contribution to the business plan.

Types of financial planning:

The financial planning process consists of four interrelated steps that lead to the final financial planning:

Evaluate the financial position of the company as part of the financial plan.
Determine the company's financial objectives according to priority as part of the financial plan.
Budgeting as part of the financial plan.
Preparation of the financial plan, and produce the final financial plan.

Marketing plan:

The marketing plan shows the target market, where it is easy to find clients if you know your target audience exactly. And the marketing plan helps you formulate marketing messages that pay off effectively. Marketing planning is knowing what your product or service can do to help your target audience through the marketing plan, and in light of this knowledge your messages should address your market directly through your marketing plan.

A marketing plan provides focus and direction. There are many marketing and promotion options that can be showed in a marketing plan, such as email, social media, electronic ads, direct mail, traditional advertising, etc. Then, you will need a clear marketing plan to determine the appropriate options for your business.

Watch: 11 Elements of Sample Business Plan You Must Need to Know