What is a business plan, and what are its main parts?

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sciencesolve | Teacher | (Level 3) Educator Emeritus

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The business plan sketches out the services or products a company wants to sell, the targeted objectives, the marketing strategies and the business model followed, capital required and financial projections.

The successful implementation of the business plan needs to take in consideration the customers and the market competition. The important elements of a business plan are company description and strategy, business environment, action plan and financial review.

The company description must emphasize the special abilities (technologies, operations, services, finances) that the company has as an advantage over competitors.

The company strategy must present the marketing plan of the company. The marketing plan needs to contain specific details regarding the methods that company will use to sell the products or services.

The business environment presents the place of the company on the market, the customers needs, the competitors, the superiority of the company's products or services with respect to the available products.

The financial review must present the state of the company's finances, such as budget, cash flow, balance sheets and financial projections. The forecast of revenue and profit growth presented by the management team must be realistic.

The action plan presents the stages in implementation of the business plan in order to reach the targeted objectives presented in plan.

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