Element of Business Plan Essay

Submitted By Monstermichelle1
Words: 607
Pages: 3

Elements of a Business Plan
Section 1: Executive Summary
Section 2: Business Description A. General description of the business B. Industry background C. Goals and potential of the business and milestones (if any) D. Uniqueness of product or service
Section 3: Marketing A. Research and analysis 1. Target market (customers) identified 2. Market size and trends 3. Competition 4. Estimated market share B. Marketing Plan 5. Market strategy – sales and distribution 6. Pricing 7. Advertising and promotions
Section 4: Operations
This segment always should begin by describing the location of the new venture. The chosen site should be appropriate in terms of labour availability, wage rate, proximity to suppliers and customers, and community support. In addition, local taxes and zoning requirements should be sorted out, and the support of are banks for new ventures should be touched on.
Specific needs should be discussed in terms of the facilities required to handle the new venture (plant, warehouse storage, and offices) and the equipment that needs to be acquired (special tooling, machinery, computers, and vehicles).
Other factors that might be considered are the suppliers (number and proximity) and the transportation costs involved in shipping materials. Also the labour supply, wage rates, and needed skilled positions should be presented. A. Identify location 1. Advantages 2. Zoning 3. Taxes B. Proximity to supplies C. Access to transportation
Section 5: Management
This segment identifies the key personnel, their positions and responsibilies, and the career experiences that qualify them for those particular roles. Complete resumes should be provided for each member of the management team, also this section is where the entrepreneur’s role in the venture should be clearly outlines. Finally, any advisors, consultants or members of the board should be identified and discussed.
The structure of payment and ownership (stock agreements, consulting fees, and so on) should be described clearly in this section. In summary, the discussion should be sufficient so that investors can understand each of the following critical factors that have been presented: (1) organizational structure, (2) management team and critical personnel, (3) experience and technical capabilities of the personnel, (4) ownership structure and compensation agreements, and (5) board of directors and outside consultants and advisors. A. Management team – key personnel B. Legal structure – stock agreements, employment agreements, ownership C. Board of directors,