Lesson 2: Concept Of Business Plan PDF

Concept of about Business Plan LESSON 2 Story Time!!! Targets: 1. Define a business plan 2. Identify key elements of a business plan 3. Identify the different parts of a business plan 4. Write a sample business plan  WHAT IS BUSINESS PLAN? A business plan is a document detail...

Concept of about Business Plan LESSON 2 Story Time!!! Targets: 1. Define a business plan 2. Identify key elements of a business plan 3. Identify the different parts of a business plan 4. Write a sample business plan  WHAT IS BUSINESS PLAN? A business plan is a document detailing a company's business activities and strategies for achieving its goals. Startup companies use business plans to launch their venture and to attract outside investors.  WHAT IS BUSINESS PLAN? For established companies, a business plan helps keep the executive team focused on short- and long-term objectives. There's no single required format for a business plan, but certain key elements are essential for most companies. Parts of a Business Plan A. Executive Summary This section introduces the company and includes its mission statement along with relevant information about the company's leadership, employees, operations, and locations. B. Introduction The introduction presents a clear explanation of the business concept, available opportunity, type of industry where the business concept belongs, the target market, the key people involved and the financial requirement of the business. C. Products and services description Describe the products and services the company offers or plans to introduce. Include details on pricing, product lifespan, and unique consumer benefits. Mention production and manufacturing processes, relevant patents, proprietary technology, and research and development (R&D) information. D. Industry Analysis Explain the current state of the industry and the competition. Detail where the company fits in, the types of customers it plans to target, and how it plans to capture market share from competitors. E. Market analysis Market analysis is a comprehensive examination of the market and its components globally or in a specific region. Its main objective is understanding the market’s opportunities, strengths, weaknesses, and consumer behavior patterns. F. Market Plan Strategic roadmap that helps you organize, execute, and track your marketing strategy over a given period G. Production or operational plan Four M’s Materials Machines Men/Women (Manpower) Money H. Organizational plan This details the human resource compliment of the business. I. Financial Plans and Projections Established businesses should include financial statements, balance sheets, and other relevant financial information. New businesses should provide financial targets and estimates for the first few years. This section may also include any funding requests. J. Appendices Miscellaneous items Activity #2 Using the Venn Diagram, establish the differences and similarities between the Entrepreneurship and Business.