: Components of a good Business Plan. Few years ago, the mere mention of the term business plan made me feel like I must get my MBA degree now... Although writing a business plan is not as difficult as we think it is. In this

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Components of a good Business Plan.
Few years ago, the mere mention of the term business plan made me feel like I must get my MBA degree now... Although writing a business plan is not as difficult as we think it is. In this article I will show you the components of a good business plan which will help you write a good business plan.

What is a business plan? As defined on Wikipedia:
"A business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the venture to succeed. It is a written explanation of the company's business model..."

In other words, it's a simple document written to focus, and clarify your business goals and how you would achieve them.

If starting a business , writing a business plan would help you understand profitability, and resources required.

Important components of a business plan would be:

 Your business plan must contain a clear and concise writing. Write short sentences with one idea.

 Illustrate your ability to make this business a success. It will help you as well to see your key points and weaknesses.

 Show profitability. Otherwise, where would be the need to begin with this venture ?

 Keep it flexible. The business plan is not really a finished document. Write it in an open manner which leaves room to accommodate new ideas and details
as they occur during the course of your business.

 Write your plan with a clear and logical structure.


Below is a typical format of a business plan:
1. Table of contents.
2. Executive summary. This is a detailed summary of the business plan; essentially a condensed version of the business plan.
3. Introduction. Where a general overview of the business, its activities, services and other details that you see fit to put in it!
4. Outline of business. This is an outline of the businesses legal structure and corporate structure.
5. Outline of services. This is an outline of the products or services that a business offers. This could include pricing and plan details for web hosts.
6. Marketing. Here is an overview of the marketing strategies a business intends to use and would include details of your target market, where you plan to advertise etc.
7. Human resources. This is an outline or detailed information regarding who you are going to employ such as support staff, sys admins etc. This section
may also incorporate information on the management.
8. Operational details. This is probably the most important component in a business plan. It outlines how the business intends to operate on a day-to-day basis. It could involve the software and systems used, etc.
9. Financial details. This section could be as complex or simple as possible. A cash flow projection and budget will do.
10. Conclusion - where everything is summarized again, highlighting your businesses vision or goals.

If you are not good at writing, starting with Executive summary would give you a good start, as this in itself will include most of the other components of the business plan.

Make sure to include your goals, and specifics you would do to reach those goals. Other than this, also focus on illustrating your abilities to make this business a success, as this will give you a clear idea of required skills for success. This will also give you an idea if you would need external help and where can you find it.

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