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Key Elements of Business Plan

01. Background of the Business

At the beginning of the business plan, it is important to discuss the background details of the business such as ownership structure, the nature of the business operations, the types of the products or services rendering to the market and geographical area of business operations. It will help to provide a clear picture about the business to the internal and external parties who are referring to the business plan.

02. Strategic Intent

Strategic intent statement of the business plan mainly discusses three main areas of vision statement, mission statement and goals and objectives of the business. Generally, the strategic intent statement guides the management team and employees of the business to take the business decisions depending on the future aspirations and expectations of the business.

03. Operations Plan

The operations plan of the business plan includes the functional approaches and activities of the business based on the different functional departments such as human resource management department, marketing management department, financial management department etc. Further operations plan illustrates the relationship and integration among each functional department using the organizational structure approach to define the delegation of roles and authorities as well.

04. Marketing Plan

Market segmentation, targeting and positioning related strategies is discussed under the marketing plan of the business plan. In addition to that most of the business is using a 4Ps marketing mix to plan the marketing strategies based on the key elements of Product, Price, Place and Promotion. However, it will be extended to People, Physical Environment and Process (7Ps marketing mix) for the service rendering businesses. Further marketing plan includes the budget for the marketing activities with the timeline to execute the activities of the marketing plan.

05. Financial Plan

The financial plan of the business plan mainly includes the initial investment budget, forecasted income statement, forecasted balance sheet, forecasted cash flows statement and other components of the financial statements as required. When business plan is presented to the investors or venture capitalists. , financial plan is considered as the most important part of the business plan to show the future financial performance attraction of the business and impress the investors or venture capitalists.