Who Needs a Business Plan?

About the only person who doesn't need a business plan is one who's not going into business. But anybody beginning or extending a venture that will consume significant resources of money, energy or time is expected to return a profit, should take the time to draft some kind of plan.

What is a Business Plan?

A business plan is a written description of your business's future.It is a document that desribes what you plan to do and how you plan to do it.They're used by investment-seeking entrepreneurs to convey their vision to potential investors.

There are three primary parts to a business plan:

  1. The first is the business concept, where we discuss the industry, your business structure, your particular product or service, and how you plan to make your business a success.
  2. The second is the marketplace section, in which you describe and analyze potential customers: who and where they are, what makes them buy and so on
  3. Finally, the financial section contains your income and cash flow statement, balance sheet and other financial ratios, such as break-even analyses
A business plan consists of seven key components:
  1. Executive summary
  2. Business description
  3. Market strategies
  4. Competitive analysis
  5. Design and development plan
  6. Operations and management plan
  7. Financial factors