The preparation of a business plan is essential in order to obtain funding. A traditional business plan typically contains information about three major business elements. These are the proposed project’s organization, marketing and financial aspects.
The organization segment contains information on how the business is put together administratively in order to function in an efficient and cost-effective manner. It addresses questions such as who will be in charge of the new budget. This segment of a business plan constitutes such things as a summary description of the business, a list of products and services that will be sold, a description of the business’s intellectual property , the choice of legal structure, management and personal information, accounting and legal provisions, insurance consideration, and planned security measures.
The marketing plan is based on the overview and goals established for the business. This plan, defines all the components of the business marketing strategy, which integrates the activities involved in marketing, sales, advertising, public relations, and networking. It addresses details of the various components of marketing, which include sales, advertising and public relations campaigns. All the components of the marketing plan must work together to enhance the businesses’ image, reinforce the brand strength, and ensure that the company is distinct from its competitors. In addition, the marketing plan should integrate the traditional and new media marketing strategies. The marketing plan is finalized by addressing customer service, implementing the business’s marketing strategy and planning for assessing the marketing effectiveness.
The financial segment translates the information in the organization and marketing segments into financial figures that illustrate how the project is expected to operate over a given period. This segment enables effective business analysis and decision making for higher profitability. It analysis the current financial state of an organization and determines the types of finances that will be necessary in achieving the proposed undertaking. It contains projections of income, expenses, cash flow and the description of budgeting and financial controls. In supporting the financial projections of a business, verifiable facts such as sales figures and market research should be used. Furthermore, the explanations offered in the other segments should be employed in establishing the financial plan’s assumptions and projections.
An effective business plan brings together all the key elements of a business. These include the products or services to be sold, their cost of production and the expected revenue in the subsequent period of operation. Most importantly, a business plan helps in establishing a working relationship between the basic elements of a business, which aids in making any necessary alterations in order to maximize the business’s profit.