Business plan is a document that is used to show the overall business concept, a particular project or idea. The business plan contains a summary of the status quo, a description of key success factors and a description of all what needs to be done to meet the business plan. It is a long-term business strategy.
What is basic structure of a business plan?
- Business Summary (Management Summary, Elevator Pitch)
- Implementation Team and Managerial Team
- Customer Problem, Customer Pain
- Customer and Target Markets
- Risk Factors
- Business Model
- Business and Marketing Strategy (Go-to Market Strategy)
- Competitors, their strengths and weaknesses
- Competitive Advantage
- Financial Plan
- Time schedule, interim targets and their temporal milestones
What is a business plan for?
A business plan is used to formalize ideas and intentions of the entrepreneur into a written document. The entrepreneur should create it especially for himself, to clarify on what and how he wants to earn money. In practice, the business plan is usually prepared for potential investors or for credit when applying for financing investment objective. No business plan is perfect. It changes over time based on changing experience and external and internal conditions.
Business plan is not compiled only by the entrepreneur - in practice it can be processed also in larger organizations for summarization and presentation of a new venture, project or innovation and for a budget defense for this purpose.