Section one is a written section describing Management and Marketing aspects of the business. Section Two includes financial projections. Section Three is supplemental information. A short (3-5 pages) Executive Summary is often added at the beginning of more complex business plans. (https://www.va.gov/osdbu/docs/vepbusinessplanoutline.pdf)
Why does one need a business plan before engaging onto any business?
• A Business Plan helps you evaluate the feasibility of a new
business idea in an objective, critical, and unemotional way. One has to evaluate if there is a market and how can you sell your product to the customers? Evaluating the management and proving if they have the skills, and lastly financially so that the investors know before investing their money the business can make a profit.
• A business plan provides a basis on which the business operates to assist you in running the business and improves the success. This is done through the projections of the financial outcomes, helps one to identify the best alternatives so as to avoid mistakes and focus on the good opportunities.
• It communicates your business idea to others and provides the basis for your financing proposal. This makes it clear for anyone to understand the business plan. Through this one can know the amount of financing needed, the returns on the investment and also the cash flow of the business.
Who will use the business plan?
One’s plan will be internal incase one doesn’t want to use it to make money and may be less formal. If you are presenting it to outsiders as a financing proposal, presentation quality and thorough financial analysis are very important to give the audience a better picture and defense towards your business venture.
To whom is the plan?
At what stage and how often?
Content of the business plan?
A typical plan will have three sections. The first section is a written section
describing Management and Marketing aspects of the business. The second section will include financial projections and the third Section will be the supplemental information.
A short Executive Summary is often added at the beginning of more complex business plans, this is always a bout 3-5 pages of data.
• Section One should be thorough, but concise and to-the-point. Use
headlines, graphs and “bullets” to improve readability. Length of this
section is usually 10 – 20 pages.
• Section Two describes in numbers the outcome of your business
strategies and plans. Your financial projections should be based on facts
and research, not “wild guesses.” Be prepared to justify your numbers.
• Section Three contains supporting information to reinforce the first two
sections. This section’s contents will vary with your type of business
Variations of the business plan?