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A business plan should reflect the unique personality of the company and typically includes an executive summary, product and service descriptions, market analysis, marketing strategy, and financial projections. There are two main types of business plans: traditional, which is detailed and comprehensive, and lean startup, which is concise and focuses on key elements. Regular updates to the business plan are essential to adapt to changing market conditions and internal developments.

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Abdela Ayalew
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11 views3 pages

zz bus plan

A business plan should reflect the unique personality of the company and typically includes an executive summary, product and service descriptions, market analysis, marketing strategy, and financial projections. There are two main types of business plans: traditional, which is detailed and comprehensive, and lean startup, which is concise and focuses on key elements. Regular updates to the business plan are essential to adapt to changing market conditions and internal developments.

Uploaded by

Abdela Ayalew
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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How to Write a Business Plan

While there are any number of templates that you can use to write a business
plan, it's best to try to avoid producing a generic-looking one. Let your plan
reflect the unique personality of your business.

Many business plans use some combination of the sections below, with
varying levels of detail, depending on the company.

Common Elements of a Business Plan


The length of a business plan can vary greatly from business to business.
Regardless, gathering the basic information into a 15- to 25-page document
is best. Any additional crucial elements, such as patent applications, can be
referenced in the main document and included as appendices.

Common elements in many business plans include:

 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.
 Products and services: 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.
 Market 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.
 Marketing strategy: Outline the company's plans to attract and
retain customers, including anticipated advertising and marketing
campaigns. Describe the distribution channels that will be used to
deliver products or services to consumers.
 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.
Investors want to see a clear exit strategy, expected returns, and a timeline
for cashing out. It's likely a good idea to provide five-year profitability
forecasts and realistic financial estimates.4

2 Types of Business Plans


Business plans can vary in format, often categorized into traditional and lean
startup plans. According to the U.S. Small Business Administration (SBA) , the
traditional business plan is the more common of the two.5

 Traditional business plans: These are detailed and lengthy,


requiring more effort to create but offering comprehensive information
that can be persuasive to potential investors.
 Lean startup business plans: These are concise, sometimes
just one page, and focus on key elements. While they save time,
companies should be ready to provide additional details if requested by
investors or lenders.5

Why Do Business Plans Fail?


A business plan isn't a surefire recipe for success. The plan may have been
unrealistic in its assumptions and projections. Markets and the economy
might change in ways that couldn't have been foreseen. A competitor might
introduce a revolutionary new product or service. All this calls for building
flexibility into your plan, so you can pivot to a new course if needed.

How Often Should a Business Plan Be


Updated?
How frequently a business plan needs to be revised will depend on its nature.
Updating your business plan is crucial due to changes in external factors
(market trends, competition, and regulations) and internal developments (like
employee growth and new products).6 While a well-established business
might want to review its plan once a year and make changes if necessary, a
new or fast-growing business in a fiercely competitive market might want to
revise it more often, such as quarterly.
What Does a Lean Startup Business Plan
Include?
The lean startup business plan is ideal for quickly explaining a business,
especially for new companies that don't have much information yet. Key
sections may include a value proposition, major activities and advantages,
resources (staff, intellectual property, and capital), partnerships, customer
segments, and revenue sources.

The Bottom Line


A well-crafted business plan is crucial for any company, whether it's a startup
looking for investment or an established business wanting to stay on course.
It outlines goals and strategies, boosting a company's chances of securing
funding and achieving growth.

As your business and the market change, update your business plan
regularly. This keeps it relevant and aligned with your current goals and
conditions. Think of your business plan as a living document that evolves with
your company, not something carved in stone.

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