1 what are two essential functions of a business plan
A robust business plan will give your start-up the greatest chance of success. Online start-ups are giving a serious challenge to male grooming giant, Gillette. Now it is witnessing disruption. As digital technology ushers in the era of e-commerce, the disruption of established industries is becoming more commonplace. The internet is offering entrepreneurial start-ups a more level playing field against larger established competitors.
The essential role of a business plan for the start-up entrepreneur
In fact, a business plan is much more than a financing device. A business plan serves as a roadmap for the next three to five years of your company and should include these seven essential elements:. Executive Summary. Begin the document with a synopsis of the entire plan. The one-page executive summary should include your mission statement, basics about when your company was founded and by whom, a description of your products or services, highlights of your growth so far, and a summary of how you want the business to grow.
Company Description. Think of this section as an extended elevator pitch that will help readers understand the what and why of your business. Describe what your business does, how that satisfies a need in the marketplace, the specific types of customers you serve, and any competitive advantages that have made or will make you successful.
Market Analysis. This is where you identify and provide details about your target market size, historical and forecasted growth rates, demographics, needs, purchasing trends, etc.
Competitive Analysis. What are their strengths and weaknesses? What are they trying to achieve? How do they market their businesses? What are the barriers you must overcome to compete and what opportunities you can take advantage of?
Use this area to formulate a strategy to stand out from the crowd. Lay out how your company operates. Include your organizational structure, ownership information, profiles of your management team, and number of employees.
Even in very small businesses and sole proprietorships, you should include a detailed description of who does what in your business and provide background information for key players. Marketing and Sales. Financial Summary. You can include expected gross income or other financial predictions, but keep them grounded in reality. This is a good place to include income statements, cash flow reports, and balance sheets to outline your assets and liabilities.
A business plan is an important planning tool, and provides a solid foundation for building a successful company. Sign in. Essential Elements of an Effective Business Plan. Jodie Shaw Follow.
Small Business Forum business owners helping business owners. Small Business Forum Follow. Write the first response. More From Medium. High-performance pushes biobased products and its industry to the forefront. Angelique Moss in Small Business Forum. Is the Lean Startup Dead?
Steve Blank. Andrew James Walls in The Startup. Gannon Hall in Blackstar. The Artist and The Innovator. Ash Maurya in Love the Problem. Forget startups, ExOs Exponential Organizations are the new way to innovate. Discover Medium. Make Medium yours. Become a member. About Help Legal.
Business arrangement in which one company (the franchisee) obtains the Three essential functions of a business plan A. 1/2 B. 3/4 C. 2/3 D. 1/3 E. 1/4. 65) The business plan has two essential functions; it helps the entrepreneur determine provide a business context, and explain the risks and rewards involved.
A business plan is a written document that is essentially a blueprint for your burgeoning enterprise. When done properly, the creation of a business plan forces you to take a close look at your business idea and gives you a clear indication of what it really takes to be successful. Your business plan will serve a number of important functions in the short term as well as in the long term. A business plan serves as a type of road map for your business by clarifying where you are, where you want to be and how you plan to get there. Without a clear business plan, you may resort to methods of trial and error to attain business success, and it will be much more difficult to determine whether you're making real progress.
What is a business plan? In its simplest form, a business plan is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals.
The key functional areas of a business are the following:. Most management activities fall into the following categories:. Operations is where inputs factors of production are converted to outputs goods and services.
Elements of a Business Plan
In fact, a business plan is much more than a financing device. A business plan serves as a roadmap for the next three to five years of your company and should include these seven essential elements:. Executive Summary. Begin the document with a synopsis of the entire plan. The one-page executive summary should include your mission statement, basics about when your company was founded and by whom, a description of your products or services, highlights of your growth so far, and a summary of how you want the business to grow. Company Description.
Top 10 Components of a Good Business Plan
Now that you understand why you need a business plan and you've spent some time doing your homework gathering the information you need to create one, it's time to roll up your sleeves and get everything down on paper. The following pages will describe in detail the seven essential sections of a business plan: what you should include, what you shouldn't include, how to work the numbers and additional resources you can turn to for help. With that in mind, jump right in. 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. All too often, what the business owner desires is buried on page eight. Clearly state what you're asking for in the summary.
