Following components are generally include in a business plan:
Executive summary
Business description
Marketing plan
Operations plan
Human resources plan
Financial plan
Executive summary
The executive summary is the section in which the basic facts in a business plan are briefly stated.
Importance Of executive summary:
Executive summary creates a foreview about the entire business plan
It gives a guideline about the business plan
It builds up confidence about the business plan
The executive summary should be always brief and attractive.
Business Description
This should reveal what the business is, what type of a good or a service is manufactured or sold, the benefits enjoyed by customers and also its
speciality.
The following details also should be there:
Name and address of the business
Goals/ objectives
Pioneers/ Promoters
Organization structure
The type of organization
Director board
Marketing Plan
The section which describes the facts such as the market, competition, marketing
strategies, sales forecasting is known as the marketing plan.
Importance Of Marketing plan:
It points out that there is an adequate and expanding market for the product
It points out that there is a possibility to face the market competition
Following elements are included in a marketing plan:
Analysis of industry and the market
Expected good or service to be sold
Target market
Analysis of competition
Expected sales
Marketing strategies of competitors
Proposed marketing strategies of the entrepreneur
Sales forecast
Marketing expenses
Operational Plan
The section consisting the details about production procedure, production machines & equipments, required quantity of products, locating the factory, national and international standards followed is known as the operation plan.
Importance Of Operational plan:
Ability to have a clear awareness about the future operations early
Ability to minimize the possible wastages and delays in the process of
manufacturing
Ability to improve the quality of the product
Ability to maintain the continuity of the manufacturing process
Following components are included in an operational plan:
Production plan
Machines & equipments requirements
Raw material requirements
Employee requirement
Manufacturing overheads
Total manufacturing cost and the unit cost
Factory layout plan
Disposal of wastage and environmental influence
Human Resource Plan
The schedule of future human resources requirements for the achievement of goals and objectives of a particular institute is known as the human resouce plan.
Importance Of Human resource plan:
Ability to forecast the future employee requirements and the cost
Ability to utilize the human resource more efficiently
Ability to prevent breakdowns of business activities due to pre recognition and
preparation for the future human resource requirements
Ability to minimize the recruitment cost that may occur due to unplanned
requirements
Ability to recognize the training and development needs of the employees
Getting the opportunity to recruit highly competent employees
Details included in a human resource plan are stated as follows:
Organization structure and organization chart
Positions and responsibilities
Annual expenditure for the human resource
Financial Plan
The section in which all the estimated financial information are included is known as the financial plan.
Importance Of Financial plan:
To determine and provide the amounts of funds required for business affairs
To make investiment decisions on the funds available in the business
To identify the periods when financial shortcomings may arrise and to decide possible solutions
To identify the periods when there can be excess funds in the business and make effective investment decisions
The facts to be included in a financial plan can be categorised as follows:
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