A business plan is defined as a written summary that is used to guide entrepreneurs on how to start and run a business.
A well prepared business plan provides entrepreneurs with a road map for growth and development of their business during different stages of its establishment (Richardson, n. d.). According to Richard (n. d.), there are 5 major components that must be included in a business plan for one to be successful in business:
Executive Summary: This should appear at the first section of the plan and it gives the full history as well as the company’s overview. It also provides an elaboration about the vision of the business and how it will achieve success.
Market Analysis: This part should give an analysis of the market and industry. Potential competitors should also be identified and analyzed as well as the target market information.
Company Description: It includes describing the business in full detail, comprising of all different components. Intangible items which can contribute to business success should be included. The description of how the business’s products and services will bring about satisfaction in the marketplace should be mentioned in this part.
Organization and Management: This part should contain the list of attributes that the business’s owner and his/her management team possess, for instance, the experience and degrees attained. It also gives a breakdown of the role and duties of each member in the management team.
Marketing and Sales: This component should describe how the business plans to gain customers using its market strategy. The sales force should also be outlined, as well as how they operate and function.
In order to become my own boss, I prefer to start my own new business other than acquiring the existing one or franchise. This is because starting a new business is less costly and easy to run, especially now when I am still new in business as compared to acquiring a franchise or existing business which require more money and experience. However, the advantages relating to my choice include lower start-up cost, operational freedom and ease of choosing location. On the other hand, the pitfalls associated with my choice include high risk of financial loss, poor time management and difficulties in obtaining fund (Vitez, 2013).
Richard, M. (n. d.). 5 Elements of a Business Plan. eHow. Retrieved from http://www.ehow.com/facts_5201367_elements-business-plan.html
Vitez, O. (2013). Advantages and disadvantages of starting a business from Scratch. Houston Chronicle. Retrieved from http://smallbusiness.chron.com/advantages-disadvantages-starting-business-scratch-816.html