The-Business-Plan

The structure of a business plan

• Although there is no single way to structure business plans, they usually contain some common elements

Key elements in a business plan

• Most high street banks can provide a detailed template for business owners to complete when applying for finance

• A business plan should be a regularly-updated working document

  • As the business grows, plans are likely to change as it faces new threats and opportunities

Elements in a business plan

Executive summary

• Provides a summary of the business idea, highlighting the unique selling proposition (USP), financial projections, and target market

• Should be concise but compelling enough to grab the reader’s attention and generate interest in the business plan

Company description

• Outlines the business’s mission, vision, and core values

• Includes information on the legal structure, business location, and any unique advantages or intellectual property the company holds

Market analysis

• Offers a detailed analysis of the target market, including size, growth potential, and key trends

• Identifies target customers and outlines their specific needs

• Provides a competitor analysis to understand rival strengths and weaknesses

Products or services

• Explains in detail the products or services the business will offer

• Highlights their features, benefits, and any competitive advantages they provide

Marketing and sales strategy

• Describes how the business plans to market and sell its offerings, including marketing channels and pricing strategies

• Explains how the business will attract customers and foster loyalty over time

Organisation, operations and management

• Details the organisational structure and introduces key team members, including their roles, qualifications, and experience

• Explains daily business operations, including production processes, stock management, and partnerships or suppliers

Financial projections

• Presents detailed financial statements, such as projected income statements and cash flow forecasts

• Outlines any funding requirements and includes current or potential sources of finance

Risk analysis

• Considers potential risks and challenges that could impact the business

• Explains how the business plans to address and manage these risks