Components Of A Business Plan

By: Deon Melchior


A good business plan has a certain structure and format that has been develop over years by specialists. That is the reason why it is best to not make innovations in your business plan format or you may end up with a poorly written plan.

You may have a great idea that you want to share with others. To present it properly you need a business plan. When writing it, keep in mind the rules that this type of document must follow. People expect to read what they are interested in and to find these things in the traditional places, so do not change the standard format of the business plan. If you want your message to reach your readers’ mind, avoid changing this well proved recipe.

Start with the executive summary section

Your business plan must begin with an executive summary. This is crucial for the success of your entire document so write it carefully. The executive summary is important that it gives people the signal if the rest is worth the time to read it. Choose your words wisely and do not forget that is the summary you are writing on.

The main role of the executive summary is to show what you intend to do regarding a problem of a certain interest. Present your product or service in an interesting fashion, by making a list with the main features of your future market.

Other aspects need also be included in the first pages of your business plan. Present your management team and then talk about your sales and marketing program. Do not forget to include the numbers everybody is interested in reading like the necessary capital, the sales projections and the program for repaying the loan.

If the reader is stimulated by this section of your plan, he or she will read the entire document. Otherwise, they will get bored and they will get rid of your ideas.

Next, your business plan should include all the elements mentioned in the executive summary, but presented in a more detailed fashion.

The elements of the business section

Describe well your business and everything related to your company, like the legal name, the physical address and the nature of your activity. This must be written in plain English, as simple as possible, without complicated terms. It is best to not get too technical, as many readers will not have the same knowledge as you in the matter. Present your intentions concerning the market and comment on the competition.

Make a market analysis section

Now get on with your marketing plan. Here you are expected to provide the numbers needed that prove that you really know what you are talking about. Talk about the market demand for your product or service, the perspectives and the trends, along with your prices and a description of your company policies.

Concentrate on the financing section

Annual income projections, a break-even worksheet, projected cash flow statements, a balance sheet, all these must be included in your financing section. You must show that you are committed to your business plan. Talk about sources for financing your project and about the capital. Also, show the same seriousness regarding the loan you want to make and how you intend to repay it.

Present your team in the management section

In this section, you must specify if your business is a partnership, a corporation or a limited liability corporation. Present your organizational structure and management team. The most important members of your team must be presented along with their resumes and biographies. Also, show your plans of hiring staff for the next few years.

There are tools that can help you in the process of building a professional business plan. Use business plan building software that can get you rid of all the immense amount of time you need to consume in order to produce the desired business plan. These software programs are affordable and convenient and they can save you a lot of time and effort.


Deon Melchior is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com