5 ESSENTIALS OF A GOOD BUSINESS PLAN

A business plan is like a road map of the business goals and objectives. It is nothing but the whole business printed over a piece of paper. Hence, it should be so powerful and convincing that it highlights all the company's essential features, strengths, uniqueness and financial soundness.

5 ESSENTIALS OF A GOOD BUSINESS PLAN

Here are 5 essentials of a good business plan.

• Executive Summary

It should contain a summary of the whole business idea for which the business operates. The executive summary should give a basic overview of the goals and functions of the organisation. Since it is the first page of the business plan, it should be precise and relevant to give a complete outline of the entire business.

• Company Description

After the executive summary comes the description of the company; this section contains all the pertinent details of the business. It talks about the products and services offered, the targeted customer segment, the distinctive features of the company, etc.

• Competitive Analysis

The business environment is full of cutthroat competition among similar businesses. In this section of the plan, the company needs to showcase its strengths over its competitors. It should present the competitive advantage a business has over its competitors. Businesses could also use this section to delineate an approach that they will follow to beat the key market players to become a market leader.

• Management Details

The management is the most critical asset of a company. The company's efficiency is directly proportional to the efficiencies and capabilities of the management. A proficient team is a prerequisite to ensuring a business's survival and growth. This makes team appraisal a significant decision-making factor for investors. Thus, a company must highlight its management's core competencies, expertise and experience to appeal to the investors.

• Financial Position

Companies should be transparent about displaying their balance sheets and income statements. A company should prepare financial models to project its future growth to show how much potential a business has to be a lucrative possession by an investor. Here, the company must display how it will work in synergy so that the revenues increase multi-fold.

These are some of the essentials of a business plan. These must be comprehensively defined and should be entirely accurate. The company must be highly transparent while documenting the business plan.