Components of a Business PlanWhat are the components of a business plan? When confronted with the process of writing a business plan many business owners and/or managers are at a loss for where to start?
There are many companies that will research and write your plan for you.......at a cost.
Many new business owners want to minimize their start up costs so having their plan professionally written isn't usually an option for most of them. Apart from the cost savings involved in writing your own plan there are many other benefits for writing your plan yourself.
Here is a brief summary of the main components of a business plan.
Executive SummaryThe Executive Summary should be written last. It is one of the key components of your business plan. It is where you present your conclusion and the viability of your idea. It is where you present the key findings of your research from each section of the plan.
This is your opportunity to present a convincing argument as to why your business will succeed. The Executive Summary should include:
Business Structure and Legal RequirementsThis is where you list the legal structure that you will use for your business. Will you be a sole trader? Or will you form a partnership, company or trust. Will you operate as a non-profit organization?Any legal requirements such as complying with certain council regulations and zoning or planning requirements should also be listed here. You should also include in this section details relating to your business name, premises and any other legal and administrative requirements including insurances. Market ResearchThe Market Research section is another key component of a business plan. This is where you identify your market, the market segment and the share of the market that you hope to secure.Include how you plan to capitalize on this and what is your unique selling proposition - what makes you better than your competitors? Why will your business succeed when so many others don't? Also mention the current state of the industry and your predictions for its future growth. Include statistics to back up your claims where possible. OperationsThis section outlines the day to day tasks. It states who will be responsible for them, their qualifications and experience.Outline any equipment that may be necessary in the production of your products or services. Financial PlanThis section is also very important. Cash flow estimates are included here. If you are a current business then you would include your recent profit and loss figures. If your future estimates will vary a great deal to your past figures then explain why.Action PlanYour action plan is simply a 'to do' list. An action plan is where you list all of the tasks that must be completed to get your business up and running. Once these tasks are completed you can then put your business plan into action.Your action plan is an important planning tool. Update it regularly. Use it in the day to day management of your business. Something to Consider...........There is a lot of work involved in putting together your business plan. Work through each step methodically. Addressing each of the components of a business plan will help you to better understand your business. As you complete the different sections of your plan you will uncover information and facts that can be helpful in completing the other sections of your plan. Being in business for yourself is hard work. Writing a plan for your business is time consuming and involves some effort. But if you are serious about making your business a success then the long term rewards will be worth it. If you are not prepared to invest the time and effort necessary then you really should be questioning your commitment to self employment. from Components of a Business Plan 
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