A business plan is a complete description of a business. The plan gives information on a product, its marketing plans and the financing of the business. Business plans are usually prepared when one is starting a business and they bring main ideas into focus, helping a potential business person to work out what they want to achieve and also guides them on how to achieve their plans.
A good business plan for start-up business gives the business or company name, its intended location and describes the product/s that the business will be dealing with (Abrams, 2003). The plan also explores on the possible market of the products. In this case, a business plan discusses the composition of the target market for a given product.
It is also imperative for a business plan to bear a situational analysis. A suitable component of the analysis is an analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT) to the business (Bangs, 2002). Moreover, it is good to evaluate the macro (internal) and the macro (external) environments of the business. Macro environment considers the effects of technology, economy, social and political influences on the business.
In addition, the business plan should bear an estimation of the start-up costs, the income projections as well as the profits and expenses to be incurred by the business. Bangs (2002) advises that a business plan should set specific timelines in which the business should have achieved some headway and made a Return On Investment (ROI).
In summation the business plan should present the business idea in a manner that it appears worth pursuing. There should be no loopholes and the information it contains should be a true representation of the actual facts on the ground.
A business plan is a description of a business idea. A good business plan should bear information about the product, the business, the market, a SWOT analysis, an estimation of financial requirements among other basics. A mush as possible a business plan should be a representation of the actual facts about the intended business.
Abrams, R. M. (2003). The successful business plan: secrets & strategies. Palo Alto, Calif, The Planning Shop.
Bangs, D. H. (2002). The business planning guide: creating a winning plan for success. Chicago, IL, Kaplan Pub.