Who needs a Business Plan?
Anyone starting out a business and need outside funding or a company is planning to introduce a new line of business or looking for expansion, needs a business plan. A business plan is a must for an organization looking forward to purchasing equipment or real estate to support expansion or want to secure Commercial finance. Written business plans are often required to get a loan or other financing options. Business Plan attracts investors and improves chances of getting it approved.

What are the contents of Business Plan?
A business plan should be structured, so that it contains all the crucial information that investors look for. Sections of a business plan are as follows:

1. Title Page
   This page captures the legal information of the business, which exhibit the registered business name, physical address, telephone number, email address, date, and therefore the company logo.
2. Executive Summary
   The executive summary is an important section because it is the primary section that investors and bankers see once they open the business plan. It provides a summary of the whole business plan. It should be written in the last to ensure that you do not leave any details out. It must be short and to the purpose, and it should capture the reader’s attention. The executive summary should not exceed two pages.
3. Industry Overview
   The industry overview section provides information about the precise industry that the business operates in. Some of the knowledge provided during this section includes major competitors, industry trends, and estimated revenues. It also shows the company’s position within the industry and the way it will compete within the market against other major players.
4. Market Analysis and Competition
   The marketing research section details the target marketplace for the company’s product offerings. This section confirms that the management understands the market as they have already analyzed the prevailing market to work out that there is adequate demand to support their proposed business model.
   Market analysis includes comprehensive study about the target market’s demographics, consumer behavior, geographical location, and market needs. The company can present numbers and sources to offer a summary of the target market size.
   A business can prefer to consolidate the marketing research and competition analysis into one section or present them as two separate sections.
5. Sales and Marketing Plan
   The sales and marketing plan details how the corporate plans to sell its products to the target market. It attempts to present the business’s unique selling proposition and therefore the channels it will use to sell its goods and services.
6. Management Plan
   The management plan is a summary of the company’s structure and forecasted human resource requirements. It should list the number of employees that will be needed and the remuneration to be paid to each of the employees.
   Any external professionals, like lawyers, valuers, architects, and consultants, that the corporate will need should even be included. If the corporate intends to use the business decide to source funding from investors, it should list the members of the chief team, also because the members of the advisory board.
7. Operating Plan
   It is a summary of the company’s requirement like inventory, labor, machinery, office space and supplies. For a business that needs custom warehouses and specialized equipment, the operating plan are going to be more detailed, as compared to, say, a home-based consulting business. If the business plan is for a producing company, it will include information on staple requirements and therefore the supply chain.
8. Financial Plan
   The budget is a crucial section which will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and can return enough revenues to be ready to meet its financial obligations. Some of the knowledge contained within the budget includes a projected earnings report, record, and income.
9. Appendices and Exhibits
   The appendices and exhibits part are the last section of a business plan. It includes any additional information that banks, and investors could also be curious about or that adds credibility to the business. It includes office/building plans, detailed marketing research, products/services offering information, Graphical presentation, marketing brochures, and credit histories of the promoters.

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Entrepreneurs generally prepare a Business Plan when they conceive a new business idea. These Business Plans require a lot of comparative analysis, data and statistics in order to justify the business logic. It also requires deeper market insights and contenders’ position in the market; these help businesses evaluate their plans in an effort to achieve their goals. And this can be done only through proper research, that is an integral part of any Business Plan.

Understanding market trend and analyzing consumer behavior is one of the key ingredients of a Business Plan. Moreover, it also minimizes the risk of failure thereby protecting the investor’s interest. A detailed research provides enough information and confidence and plays a pivotal role for the management to take important business decisions in light of their Strength, Weaknesses, Opportunities and Threats (SWOT Analysis).

Studying the customers, the market and competitors are key attributes of strategic decision making which help in executing plans most efficiently. Importance of Research in Business Planning thorough research gives a better understanding and knowledge of the market and market trend; it also helps in coming out with innovative ideas of new products and enhanced services that may give them an edge over the competitors.

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Below are the important elements of a good Business Plan:–

• Industry Overview (The Problem)
• Product or Service (The Solution)
• Competitive Analysis (SWOT Analysis)
• Sales & Marketing Plan
• Target Market, POC, Expansion Plan
• Operations, R&D & Technology
• Management Team, Organization Chart
• Financial Projections (Exit Strategy)
• Risk Analysis
• Executive Summary

A Business Plan is an important tool to help build a better business. Hence, it’s important that it’s written/developed by experienced professionals who understand the requirements of an investor. They ensure to highlight the impact of the above key elements on the business, thereby making it a very important tool to attract investors and obtain financing to kick-start the project.

Research is an integral part of a good Business Plan and researching on Market Analysis, Competitor Analysis, etc. makes preparation of Business Plans a time-taking task.

A very important element of a good Business Plan is not only the Financial Projections, but also the key financial performance indicators in the form of ratios, for example, Payback Period, Rate of Return, Cash Conversion Cycle, Days Sales Outstanding, etc. These ratios are very helpful for investors to determine their Exit Strategy.

Lastly, Business Plans should be treated as a bible and entrepreneurs should adhere to the assumptions underlying the Business Plan, unless market conditions demand otherwise.

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