The structure of a business plan
The structure of the business plan is not fixed, but its main points are listed below. Attempts to
write a plan according to a fixed format will reduce the value of the plan as adjustments for the
different needs of each company will still be required.Beyond the internal considerations, one of
the guiding considerations is the need to include the appropriate level of business plan details to
enable potential investors and strategic partners to use about the plan for their
decision investment. In addition, it is important to indicate the assumptions underlying the
relevant data in the plan and timelines for the achievement of targets during the stages of
penetration and market development.
Executive Summary
The Executive Summary provides a brief review of the idea.Most executive summaries include
the following:
• General description-The business / field of activity, product and company
• Report-A goals business mission and objectives of the company
• Description-A description of the product of the product, product demand, and its advantage
over other products
• Openings-target, the outlet, and the business model for the benefit of it, including the exit
strategy for investors
• The short-description A team from the main team and qualifications
• Current state-stage development, protection of intellectual property such as patents, and so
on.
• Summary of financial income, projections, net income, cash flow financing, and projected
return up to five years
• The previous round of conditions for investment and financial resources which the company
aims to increase the current and anticipated round, as well as the articles to which the budgets
will be assigned
Headers Business Plan
• Company profile, this provides a description of the company and its activities from its
establishment until today.
• Analysis of market and competition-this is a general description of the market in which the
company operates and a detailed description of its competitors. It is expected that a detailed
analysis of information that is obvious common knowledge (for example, that the number of
computer users is growing in coming years) should be avoided. The expectation is that it is
better, rather, to focus on a detailed analysis of the products or services available on the market
and / or competition the company and its products. The description of the contract will include a
description of market size and trends in it (technological and financial), market segmentation,
the problems that exist in the market, key competitors, barriers to market entry, and
customer potential. This section of the business plan should include the results of detailed
primary and secondary research conducted by the company in terms of demand for its
products. In addition, this section usually includes an analysis of the profitability of the industry
and legal and regulatory restrictions imposed in the area.
• The vision and strategy in this Part, the company should show its vision and strategy to
achieve it.
• Product or service description, that this part focuses on the solution proposed by the company,
including a detailed description of the product and technology, intellectual property of the
company, products, competition, and why the product is higher to them. The competitive
advantage of existing product offered by the excess of company and product potential
competition is presented in this section.
• The development program, this section describes the development process, the current status
of development of each product and service, and scope of the team and the development
budget.
• The plan of operation, this section describes the organizational structure of the company, as
the structure of the production facility, the costs of labor and materials, logistics and service, and
a plan to acquire the means of production and computers.
• The marketing plan-in this Part, the company must indicate, among other things, its objectives
in respect of each target segment, the channels existing and planned sales, product evaluation
for distributors and the structure of remuneration, terms of advertising, and incentives to give to
customers.
• The management and ownership, this section describes the management team including brief
summaries of senior management. Management is probably the most material in the investment
decisions made by investors: Investors prefer to invest in a poor idea that is implemented by an
excellent team rather than invest in a great idea that is not supported by the necessary
management of high quality. The ownership structure of the company will also be described in
this section.
• Financial forecasts, projections that must be accompanied by full and detailed reports, and
usually include the projected operating budget (research and development, operations, and
general overhead, sales), the projected financial statements, the economic analysis (return on
equity, return on investment, and so on), and sensitivity analysis (the projected effect of
changes of various parameters on the expected results of business). It is customary to include
in the plan's financial projections for a period of three to five years, with quarterly or even
monthly specification of the early years of the forecast.Many investors are discouraged by the
claims which are not sufficiently supported, and therefore deal with the entire plan booking. For
this reason, many entrepreneurs avoid include detailed forecasts in investment circles,
especially in the early stages. However, even if such forecasts are not included in the plan, it is
important that detailed assessments are available to the company and investors, upon request,
so that decisions regarding development and investment in various alternative arrangements
can be made aware in a way.
• Appendices will be found here spending specifications, table of comparison to competitors,
full executive bios, letters from clients, and so on.
The order in which items are presented in the business plan andthe degree to which the
various issues highlighted are changesfrom one company to another depending on its
scope,innovativeness (eg, a more detailed explanation of the product,opposed to an
emphasis on the description of competitors), current status, and so…