A business plan is a document that describes in detail how a job will achieve positive financial goals. It is a theoretical guide that gives detailed elaboration of the plan from the angle of marketing, finance and operations. This is also the longest document in the entire business documentation and should be the basis and source of all other documents and facts related to the business endeavor. There is no universal rule as to how long a business plan should be. From the usual expectations that a business plan should be a document that extends in dozens of countries, it increasingly goes down, and guidelines for writing become the principles of convenience and expediency.
The purpose of the business plan is to show the details of a business venture to potential investors or business partners, but it is nevertheless essential to serve as a living document, subject to change and improvement – a document that serves as a reference in which direction the business should be moving. Business plan is always evolving and improving and it implies business planning for the development of one undertaking in real time.
All elements of a business plan are a variable category – market dynamics are changing, revenue and sales are difficult to design, and are critical to business, action plans have to be adapted. Some business plans are not good just because they are not adjusting to the current moment.
On the other hand, some business plans can be technically done flawlessly, but the assumptions on which the claims are based can be wrong. Most potential business planners (eg investors) understand and verify the assumptions on which assertions are based, and it is essential that analysts and financial budgets are credible and precise.
Grand Marketing experts will create dynamic business plans that will, with the complete market analysis, best highlight the brand’s benefits, financial reports, cost control and capital investments, standardization of production and service processes and efficient use of resources.
Elements of business plan:
– Executive Summary
– Company description
– Detailed description of the product or service
– Market and market analysis
– Industry and competition
– Marketing and sales
– Management and operations
– Risks and their control
– Action plan and key events
It is precisely the document that is the introductory part of the business plan. Although it comes first, this section is usually the last one.
It implies key values and what is unique about the company. Legal form of the organization, who are key people, how they contribute to business. A description of products and services in which way a potential client, team competence, market needs, client structure, etc. are reached. Brief overview of the entire operation.
A detailed description of the product or service
Most importantly, the description of the product / service is clear. A description of how users use this product or service and how they differ from similar products or services on the market. All details on which the product differs from the competitors, factors that will contribute to the success of the product, arrangements with suppliers. Whether products or services are based on intellectual property. In which stage of development is the product.
Market and Market Analysis
A detailed analysis of the target market. How much share can be expected on the basis of which assumptions. Establishing a pricing model, distribution methods, a strategy of competitors, etc. Market analysis is the basis for further planning and a significant tool that describes the market based on size, demography, structure, growth, trends and sales potential. Analytics gives freedom but also precise assumptions for further projections of business steps and development strategies and distribution channels.
Industry and Competition
Current state of the industry from the environment, its size, trends, players, existing competitor solutions, similar projects, what is the current status and market position of these solutions, and the expected response of the competition. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competition and the strategy that will provide an advantage. In the case of a new product, it is necessary to analyze how much potential competition can easily enter the market with a similar solution.
Marketing and sales
Creating marketing plans, promotion, pricing, distribution. Values and benefits through which interest, attention and loyalty can be achieved with potential or existing clients. Will the promotion plan involve investing in public media or will the emphasis be on modern communication channels such as social networks? The content and flow of information to consumers, who is the target group and who will deal with sales.
How the business really works and how it is managed. The segment should highlight details regarding the organization of the team and the manner of management, the responsibilities of the team of managers and their functions. Ownership structure and legal form of organization.
Risks and their control
Risk analysis that can arise through business and the foreseen strategies for their preventive elimination or proper response. Risk analysis is also one of the wisest and most responsible parts of business planning.
Action plan and turning events
It represents an elementary assumption of a successful implementation of the entire business plan. It is therefore necessary that the business plan contains a plan of activities with defined deadlines and prominent breakthrough events, after which the new stages of business development start.
Projections of revenues, expenditures and profits are crucial for every business venture. The management of each business is essentially reduced to the skill of creating a positive difference between revenue and expenditure. Financial control includes sales, labor costs, profit and loss analysis, cash flow projections, balance sheet and profit and total amount of required capital investments.