Key Elements of a Business Plan - Become a Business Plan Expert

If you are planning to launch a business, a business plan can help you achieve your goals in more ways than one.

It helps you set strategic goals, organise your company, and secure funding. There are many other benefits of having a well-developed business plan. 

But how do you exactly make a business plan? 

While there are no strict rules about what to include in a business plan, this document should have the most important components. 

Read this article to learn about the key elements of a business plan.

Executive Summary

The executive summary is the first thing potential investors or stakeholders read. It sets the tone for the rest of the business plan. 

An executive summary acts as a snapshot of your business. Readers can quickly learn about your vision and goals.

An executive summary can include the following elements:

• General information about the company
• Key elements of your business
• A quick overview of products/services
• Financial projections
• Funding requirements 
• Future vision

Remember to briefly go over these elements. This part of your business plan is just a summary, so it shouldn't be too long. One page is enough. 

A well-crafted executive summary can grab attention. It should have the power to encourage readers to go through your entire plan. 

Business Description 

The business description sets the foundation for the rest of your business plan. It's basically an overview of your entire business and what it offers. 

This section should be short and to the point. It should include the following details:

1. Your mission statement
2. Your vision statement
3. An overview of your business
4. Your business's history
5. Brand identity
6. Unique selling propositions 
7. Business objectives

A business description provides context and background. It helps readers understand who you are and what you do. 

This section builds credibility by showcasing your business's strengths and potential. 

It also helps investors and stakeholders see your vision. They can better understand how your business fits within the market and industry.

Market Analysis

The market analysis section delves into the specifics of your industry. It's also where you show your knowledge of your target market and competition. 

It's one of the main components of a business plan.

It shows your understanding of the market and your business's potential for success.

This part of your business plan demonstrates your strategic planning skills. It helps investors see the potential demand for your products or services. 

By identifying market trends and opportunities, you can show how your business can thrive. 

As one of the main business plan key points, market analysis comprises:

• An overview of your industry and market
• Target audience and customer demographic analysis
• Competition analysis
• Analysis of the market size (TAM, SAM, SOM)
• SWOT analysis (strengths, weaknesses, opportunities, and threats)

A competitive analysis can reveal gaps in the market that your business can exploit. It can also reinforce your unique selling proposition. 

This section builds confidence that your business can succeed in a competitive environment.

Organisation and Management

This section outlines your business's organisational structure. It also introduces the key members of your team.

You can use this section to talk about your:

1. Organisational structure
2. Management 
3. Ownership information
4. Board of directors
5. Human resources 
6. Employee roles
7. Training and development

The organisation and management section shows the capabilities of your team.

Investors and stakeholders want to know who is behind the business. This section also reveals whether the owners have the skills and experience for success. 

By detailing your team's qualifications, you can build confidence in your leadership. 

This section also helps clarify the lines of authority and responsibility. It demonstrates that your business is well-organised and prepared for growth.

Products or Services

The products/services pages explain your business's offerings. This section shows how it meets the needs of your target market.

It helps investors and stakeholders understand the value you provide to customers. 

As one of the most important aspects of a business plan, this section includes:

• Description of what your business offers (products or services)
• Specifications, features, benefits
• Sourcing
• Packaging
• Distribution
• Inventory
• Pricing scheme
• Product lifecycle 
• Production process

The goal is to highlight the unique features and benefits of your business offerings. That way, you can differentiate your products/services from competitors. 

This section also demonstrates your knowledge of the industry and market trends. It reinforces your business's potential for success.

It shows that you have a clear strategy for pricing, development, and production. This can build confidence in your business's operations and future growth.

Marketing and Sales Strategies

This section lets you show how you plan to reach your target market and generate revenue. 

You can add these business plan aspects to this section:

1. Planned online and offline marketing channels
2. Digital marketing strategies
3. Performance measurement
4. KPIs (key performance indicators)
5. Strategies for promotions, partnerships, and collaborations
6. Sales strategies
7. Budget and resource allocation for your marketing efforts

It shows readers that you have a clear and actionable plan to promote your products or services. You will be able to explain how you plan to drive sales. 

Here, you can write about your marketing channels, promotional activities, and sales. This lets you build confidence in your ability to attract and keep customers. 

This section also highlights your understanding of the market and competition. It reinforces your business's potential for growth and success.

A well-defined marketing and sales strategy can help you divide resources effectively. It lets you achieve your business objectives.

Operations Plan/ Business Strategy

The operations plan/business strategy section shows how your business will function. Moreover, it shows how you plan to achieve your goals in a strategic way.

It demonstrates that you have a clear plan for managing day-to-day operations. This includes:

• Daily operations
• Legal matters, such as licences, permits, and insurance
• Opening and closing hours
• The opening date of your business
• Technologies you plan to use
• Supply chain management
• The location of your business facilities
• Risk management

You can write about your operations, supply chain management, and quality control measures. That way, you can build confidence in your business's efficiency and reliability. 

This section also highlights your strategic planning abilities. It shows you have thought through the practical aspects of running your business. It also shows that you are prepared to handle challenges. 

A well-defined operations plan ensures that your business is structured for success.

Financial Plan

A financial plan is one of the most essential elements of a business plan. It provides a roadmap for your business's financial future. 

It shows investors that you have a realistic and well-thought-out plan for revenue. It also shows you know how to manage expenses and achieve profitability. 

This section lets you build confidence in your business's financial health. It also points to your potential for growth. 

To do this, make sure to add:

1. Financial projections (cash flow statement, profit and loss statements, and balance sheet)
2. Startup costs 
3. Revenue model
4. Break-even analysis
5. Potential sources of funding
6. Funding requirements

This section also helps you identify funding needs. You can articulate how you will use the funds to achieve your business goals. 

A solid financial plan shows you understand the financial aspects of your business. This is very important for your investors.

Conclusion

The conclusion section summarises the key points of your business plan. It also reinforces your business's potential for success. 

It provides a final opportunity to convince investors of your business's value.

In this section, you can add your future milestones and their target dates. Make sure to explain your plans for growth. You can again talk about your potential for success.

Reinforce your business's mission, vision, and long-term goals. Reiterate the market opportunity and your business's unique position to capitalise on it.

If the purpose of your business plan is to achieve funding, add a call-to-action (CTA) as well. 

Just like the executive summary, this part should be one page long and no more than that.

Appendix 

An appendix is not mandatory, but it's useful if you want to add supporting documentation. 

For instance, you can add:

• Financial statements
• Your research on market data
• Resumes of your most important team members
• Licenses and permits
• Any marketing materials 
• A lease agreement if you have a brick-and-mortar business

Business Plan Essential Elements

Writing a business plan is hard work. It takes time, dedication, and knowledge of your business and industry. 

If you don't want to go through the hassle of writing your business plan, you can turn to Launch Crew Consulting. 

As business plan professionals, we will create the perfect business plan for you. No hassle, no stress. Just leave everything to us.

You can book a free consultation or contact us for more questions. You can also download one of our free templates.