A good business plan should outline all the costs and the downfalls of each decision a company makes.
A good business plan should outline all the costs and the downfalls of each decision a company makes.Tags: Tea Making Process EssayEssay No Man Is An IslandEssay About Hester PrynneBusiness Plan For FilmHow To Write A Sociology Research PaperCoca Cola Supply Chain Management Case Study
A complete business plan must include a set of financial projections for the business.
These forward-looking projected financial statements are often called pro-forma financial statements or simply the "pro-formas." They include the overall budget, current and projected financing, a market analysis, and its marketing strategy approach.
They also act as a means to get people to work with and invest in the business.
Although there are no right or wrong business plans, they can fall into two different categories—traditional or lean startup.
But they all tend to have the same elements, including an executive summary of the business and a detailed description of the business, its services and/or products.
It also states how the business intends to achieve its goals.Usually, banks and venture capital firms make a viable business plan a prerequisite to the investment of funds in a business.Even though it may work, operating without a business plan is not a good idea.Products and services: Here, the company can outline the products and services it will offer, and may also include pricing, product lifespan, and benefits to the consumer.Other factors that may go into this section include production and manufacturing processes, any patents the company may have, as well as proprietary technology.Any information about research and development (R&D) can also be included here.Financial planning: In order to attract the party reading the business plan, the company should include any financial planning and/or projections.Business plans help companies identify their objectives and remain on track.They can help companies start and manage themselves, and to help grow after they're up and running.Sometimes, a new business plan is prepared for an established business that is moving in a new direction.A business plan is a fundamental tool any startup business needs to have in place prior to beginning its operations.