Business Plan



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Topic-4 Business Plan and Structure

Scope of Business Plan

  • The scope of a business plan refers to the target reader of the plan. The readers may be employees, investors, bakers, advisors and consultants. Each of these group read the plan for different purpose. Hence, the entrepreneur should attempt to satisfy all of their concerns. The employees are the internal parties and the investors and other stakeholders are external parties.

Scope of Business Plan

  • Employees: Business plan is important for both managerial and administrative employees. It articulates the vision and mission of your firm. It guides the employees to move ahead in a consistent and purposeful manner.
  • Investors and other stakeholders: Business should be realistic. It should ensure a high return to the investors with minimum risk. It also requires a sound financial projection. It should also ensure the validation of ideas.

Significance of Business Plan

  • Create a new business(roadmap of business)
  • Business growth
  • Seek business investment
  • Risk management
  • Means of communication(vision, mission, strategies)
  • Product/service description
  • Cash flow

Business plans must help investors understand and gain confidence on how you will meet your customers’ needs.

  • Business plans must help investors understand and gain confidence on how you will meet your customers’ needs.
  • Seven common parts of a good Business Plan are:
    • Executive Summary
    • Business Concept
    • Market Analysis
    • Management Team
    • Marketing Plan
    • Financial Plan
    • Operations and Management Plan
  • Building a Business Plan

Content/Elements of Business Plan

1. Executive Summary

2. Industry Analysis

3. Company Description


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