Business Plan: a simple Financial Definition

Business Plan: a simple Financial Definition

A business plan is a document demonstrating the feasibility of a prospective new business and providing a roadmap for its first several years of operation.
(Source: Whatis.techtarget.com)

Although the specifics may vary, here are the typical components of a business plan for a new business:

  1. The executive summary is a nutshell version of the entire plan, briefly covering the essentials.
  2. The business description describes the proposed new endeavor, explains its purpose and its target market.
  3. The plan’s market analysis section describes the industry and the market environment of the proposed business, including a profile of the competition.
  4. The organizational and managerial section explains how you envision the structure of your business, what types of positions and departments it will encompass.
  5. The products (or services) section details what you’re offering. This section should include a full description of the products you’ll sell and your plan for product lifecycle management (PLM).
  6. The marketing and sales section explains your strategies for branding, marketing and selling your product or service.
  7. The financial projection covers the expected performance and milestones over the first years of operation, usually five years. For an existing business, historical financial data should be included.

A business plan includes the business model. However, the latter is a representation of how an existing business works, rather than how a prospective business can work.

(Source: Whatis.techtarget.com)
http://whatis.techtarget.com/definition/business-plan