A business plan is a composition of all the several sub-plans that are made into a single document. These plans include the marketing plan, the business plan, human resources plan and the financial plans. It would also consist of the business summary and the executive profile. Each of these components serves their functions differently depending on the place in which they will operate. As such, the plans would require an adjustment if they are to be used in a foreign country. Some of the most applicable components of a business plan include the marketing or a business review, operations and management, the financial statements and the action plan.
A marketing plan evaluates the overall competitiveness of the surrounding situation for the business in question. It is the first consideration for any business so as to determine the viability of the business that is currently underway. It means that the plan has to describe the industry where the plan will operate, and their strategy to operate within a given market as well as enhance the target market. It will cover the products in terms of their purchase and the number of customers that the business targets, and also the kind of services that will be on offer to promote the business. Some of the techniques applicable to marketing with regards to this include application of the SWOT analysis, PEST analysis, using a balanced scorecard and brainstorming (Horan, 2007). With a marketing plan, it has to be relevant to the situation in which it operates since it should be the actual representation of what is on the ground. It allows for an effectiveness when planning as it comes with accuracy. The consequence in such a state is that the plan should clearly explain the nature of the market in relations to its size and structure even be able to project the likelihood of a change affecting the market conditions.
Operations and management include the nature of all the business activities and how they operate in the market. The future plans of the market products and the services are explained in this area, and it also gives the possible exit strategy of the company. This implies that the nature of the market supplies and the services rendered with regards to the products and the services will require accountability from the time of production to distribution. With operations and management, there has to be accountability of all the activities that take place within the firm so that the business works within its financial confines. It means that the business have to conversant with its production capacity so that it becomes aware of how to deliver the supplies and the after sales services that it will offer (Hoover, 2007). Operations and management ensures that there is accountability of the resources that are used within the firm both in terms of the yields and the skills available.
The financial component determines the effectiveness of the business plan since it impacts on every decision made within the firm. It stems from the detail that all the strategies the business get influenced directly or indirectly by the funding activities within the business. The revenues collected and the expenses incurred will shape the decisions made in terms of the planning procedures and the nature of carrying out these plans. The plan entails the income statement, the cash flow statement, the balance sheet and the capital sales and purchases (McKeever, 2007). With the cash flow statement, the managers are able to know what they can afford and for how long they can afford the product or service. It helps to evaluate the soundness of the business by having a clear definition of its viability. It in turn helps in decision making by improving on the accuracy of these decisions since the managers will be fully informed of all the undertakings within the business. When the financial component is coupled with effective operations and management, other plans that the business has are likely to fall in place as expected.
Suppose that the plan were to be of use in a different country, the respective organizations would have to ensure that they reorganize their marketing plan so that it suits the respective markets. Markets are different based on the size and the nature in which they operate. Also, people’s tastes and preferences vary, and this will always influence the nature of the market in terms of the size and the structure. Eventually it will lead to differences in the nature of the competitiveness of the market. It would, therefore, be imperative that the business understand the variety in the nature of the market so that it offers the respective customers what they expect from the products or services. Also, the operations and the management will change since they are reliant on the business size and the capacity that it takes. Some businesses are global while others are regional as such; different management styles will be effective depending on the nature of the business to suit the market needs and size.
Horan, J. (2007). The one page business plan: The fastest, easiest way to write a business plan!. Berkeley, Calif: One Page Business Plan Co.
McKeever, M. P. (2008). How to write a business plan. Berkeley, Calif: Nolo.