What is the theme and structure of a business plan?



There are many different options for structuring a business plan. All options will cover the four basic areas of business – marketing, production, organization, and finance. Here is an example:

  1. Execution Summary
    1. 1 Subject
    1. 2 Mission
    1. 3 Basic Keys to Success
  2.  Business Summary
    2. 1 Company ownership
    2. 2 Business Startup Summary
    Describe the history of the project – product, market, location, legal form, implementation plan & financial plan.
    2. 3 Products and services
    Summary of products/services offered/provided
    2. 4 Company location and favorable conditions
    The location of a business is essential to reduce costs or increase the chances of customers stopping by to view your products or request your services. The location depends on the type of business such as retail, service oriented or manufacturing. There are several important factors to consider in the location such as access to raw materials, access to markets and distribution channels, availability of transportation facilities, efficiency & cheap skilled labor, etc.
  3.  Products and services
    3.1 Product and service description:
    Briefly describe the product, size, color, shape and range of products offered or features of the service provided. Introduce the uses, benefits, whether it is a new or existing product/service.
    3. 2 Compare the competition
    Determine what will make the product/service unique in the marketplace. Will it be a better quality product than what is currently available or will the price be a significant difference that makes the product easier to sell? What features might make the product different from those of competitors?
    3. 3 promotional publications
    3. 4 Find the source
    Identify different sources of raw materials and labor and their availability during the year to ensure continuous production. Anticipate possible problems with the sources and seek solutions.
    3. 5 Technology
    Determine the machinery and equipment required for production and estimate the exact costs. It is generally better to start on a moderate scale, starting with a small building or even renting premises and having the minimum necessary machinery and equipment. The useful life of the machinery and equipment must be considered in this section, taking into account depreciation.
    3. 6 Future products and services
  1. Execution Summary
    1. 1 Subject
    1. 2 Mission
    1. 3 Basic Keys to Success
  2. Business Summary
    2. 1 Company ownership
    2. 2 Business Startup Summary
    Describe the history of the project – product, market, location, legal form, implementation plan & financial plan.
    2. 3 Products and services
    Summary of products/services offered/provided
    2. 4 Company location and favorable conditions
    The location of a business is essential to reduce costs or increase the chances of customers stopping by to view your products or request your services. The location depends on the type of business such as retail, service oriented or manufacturing. There are several important factors to consider in the location such as access to raw materials, access to markets and distribution channels, availability of transportation facilities, efficiency & cheap skilled labor, etc.
  3. Products and services
    3.1 Product and service description:
    Briefly describe the product, size, color, shape and range of products offered or features of the service provided. Introduce the uses, benefits, whether it is a new or existing product/service.
    3. 2 Compare the competition
    Determine what will make the product/service unique in the marketplace. Will it be a better quality product than what is currently available or will the price be a significant difference that makes the product easier to sell? What features might make the product different from those of competitors?
    3. 3 promotional publications
    3. 4 Find the source
    Identify different sources of raw materials and labor and their availability during the year to ensure continuous production. Anticipate possible problems with the sources and seek solutions.
    3. 5 Technology
    Determine the machinery and equipment required for production and estimate the exact costs. It is generally better to start on a moderate scale, starting with a small building or even renting premises and having the minimum necessary machinery and equipment. The useful life of the machinery and equipment must be considered in this section, taking into account depreciation.
    3. 6 Future products and services
  4. Market Analysis
    4. 0 Summary
    4. 1 Market segmentation
    Describe the geographic landscape (that is, where most of the products are sold) and the specific target groups within the population in that area.
    4. 2 Industry Analysis
    4. 2. 1 Members involved in the industry
    Identifying the target customers clearly, as well as their personalities and profiles in terms of age, gender, income, purchasing practices, consumption channels, lifestyles and tastes is essential to ensure that the required product matches their needs and also their desires. If they are other organizations or businesses, their consumption volume and decision-making process in purchasing and paying for the product should also be considered.
    4. 2. 2 Distribution types.
    Choosing the most effective distribution channel for your product/service is whether the product/service should be sold directly to customers or through an intermediary.
    4. 2. 3 Types of competition and purchasing
    4. 2. 4 Main competitors
    Describe the competitors currently present in the market area, their strengths, weaknesses, and importance to your business.
    4. 3 Market analysis
  5.  Strategy and implementation
    5. 0 Summary
    5. 1 Marketing Strategy
    Forming a marketing strategy means planning appropriately, balancing and integrating the company's product strategy, pricing strategy, distribution strategy and promotional strategy. This is necessary for a new business aiming to enter a defined market and compete more than existing businesses.
    5. 1. 1 Target market and market segmentation
    5. 1. 2 Pricing strategy
    Choosing the right pricing strategy is important as it is the most important factor for the success of the business.
    5. 1. 3 Support strategies
    Advertising is necessary to attract and persuade buyers to buy your product and not your competitors' in order to achieve the expected sales. Sales support is generally divided into advertising, sales support, publications and personal selling. The budget for support should be carefully considered in the business plan.
    5. 1. 4 Distribution strategy
    Identify potential intermediaries to contact for the purpose of achieving sales targets
    5. 1. 5 Marketing program
    5. 2 Sales strategy
    5. 2. 1 Sales forecast
    Project monthly and annual sales targets for at least the next five years. This is a key element of a business plan. In fact, it is more accurate than other projections can be.
    5. 2. 2 Sales plan
    5. 3 Strategic alliances
    5. 4 Service and support
    Describes the additional services offered along with the main products/services to satisfy other customer needs.
    5. 5 Important Milestones
  6.  Manage
    6. 0 Summary
    6. 1 Organizational structure
    Determine a legal form of business registration of the enterprise when registering a business based mainly on the owner's experience in business management and professional aspects. Prepare an organizational chart in which each function is illustrated specifically.
    6. 2 Management Team
    Describe key personnel in the management team in terms of their knowledge, business relationship experience, educational background and responsibilities in the business
    6. 3 Management Team Differences
    6. 4 Human resource planning
    Based on the organizational chart, determine a plan to hire necessary personnel, prepare job descriptions, selection criteria, compensation and other benefits for employees.
    6. 5 Consider other management sections
  7.  Financial planning
    7. 1 Important Assumptions
    Identify important conditions without which the financial plan may fail.
    7. 2 Basic financial indicators
    7. 3 Break-even point analysis
    The break-even point is the level of production at which a business neither makes a profit nor incurs a loss. Production above this level will result in a profit and production below this level will result in a loss. This point can be calculated by the value of production output, the % ratio or revenue.
    7. 4 Expected profit and loss
    The profit and loss statement shows the results of business operations over a period of time (month or year). It can be calculated by subtracting operating expenses from revenue for the same period.
    7. 5 Cash flow projections
    A business cash flow statement shows the sources (inputs) and uses (outputs) of cash in the business during the year. By planning your business's cash flow, you can predict when you will need additional cash and when you can have extra cash. If you borrow from a bank, they will need to know your cash flow plan.
    7. 6 Balance sheet projection
    A balance sheet is a statement of assets and liabilities that provides a picture of a company's finances at a given point in time, such as the end of the year.
    7. 7 Business Ratio
    In the final part of the business plan, it is necessary to examine the financial feasibility of the project. Will the first year's profits be sufficient to repay the debt and repay the interest? What happens to the projected profitability if the cost of raw materials increases by 10%? What if the revenue projection of only 80% is realized? Can the business be expected to make monthly cash interest payments? Various financial ratios are used to answer all such questions.

Get professional help in preparing a business plan

The areas of business planning that business owners often find the most difficult are the marketing and financial sections. If you are serious about starting, expanding or improving your business, it is definitely worth getting some in-depth knowledge of your business planning. And last but not least, you should seek business advice from friends near you. You can seek out the staff at the Business Consulting Centers that have relationships with our branches in the provinces or somewhere. At the same time, you can contact us directly.

Initial costs

There are few business plans – or businesses – that do not show losses in the early stages of the business. These losses are primarily due to the initial costs of starting the business and the low revenues at the beginning of the business. The extent and accounting period can vary greatly from one business to the next. It also depends on the method of external financing used, the costs and repayment methods involved in this financing.

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