Whether you’re starting a new business, re-positioning your existing business, or targeting outside investors, getting a clearly detailed business plan can make the journey to your business goal easier, faster, and less costly.

Creating a business plan is one of the most important steps you will take because your detailed business plan serves as your road map for your business. Your business plan tells you what you need to do and how to do it in the right way. It is a written description of your business’s future, goals, vision, objectives, market opportunities sales and costs, milestone and how to achieve your yearly milestones and targets among other things.

In this article we will be focusing on things that make up a business plan – the components of a Business Plan.

Components of a Business Plan

1. Executive summary– the overview that will give the reader a snapshot of everything that is in your plan, and hopefully, get them excited about your business!

2. Problem and solution section– this is the most important part of the business plan, and where many entrepreneurs fail.

• Every great business starts with a pain point, a problem that the entrepreneur is trying to solve for its customers.
• Next, you need to explain the solution to the problem this is your product or service in a nutshell.
  • what do you offer, and how will it solve a problem for your customers
  • explain your value proposition what is the unique value you are providing to your customers

3. Market section– this section will explain who you are trying to serve, the size of the market and the different segments you are targeting.

4. Competition– In this section you look at what and why you can do better than the competition.

• What is your “secret sauce” that thing that you have that you know your competition doesn’t have.

5. Strategy– This final section of the business plan is all about the how;

• How will you reach your market with your unique value proposition?
• How will you make money?
• In this section, you will describe your business model, your strategy including your operating, product and marketing plans – and you will provide financial forecasts.
• If you are writing the plan for an investor of lender, this is where you will explain how much money you need, and what kind of return you will provide.

Stylistic issues in business plan writing

1. Short, clear, concise writing.
2. Well-placed graphics, images and good design can really lift your business plan and make it professional.
3. Here are a few simple guidelines to making your business plan professional:

• Include a cover page and a contents page
• Ensure the pages are numbered
• Keep your sentences short no more than 15 words per sentence.
  • Try reading it aloud. If you have to pause for breath, break the sentence and start another one.
• Provide signposts for the reader.
  • At the beginning of each section, tell them what you are going to tell them.
  • At the end of each section, tell them what you just told them.

Hope this helps, drop your comment below if you find this useful.

The post Components Of A Business Plan appeared first on SME Digest!.