What is a Business Plan?

Introduction

A business plan is a crucial management document that provides a blueprint for a company plans with a summary of the business objectives. It also highlights the strategies the company will employ to realize the set goals. This essay explores three sections of a business plan: market analysis, company description, organization and management.

The market analysis section is the second part of the business plan that comprehensively illustrates marketing research data of the industry the business is involved with. Furthermore, the marketing analysis section is also comprised of information on the target market, description of the industry, recent results of market tests and an analysis of the business’ competition. The plan should include the ‘strengths and weaknesses of key competitors. The trends of the industry such as growth rates, major consumers and the actual size of the industry are a crucial component in developing a business plan and should, therefore, be addressed in this section. The target market (customers the business focuses on), should be well defined and by all means be of a manageable size and a constricted scope. This way the business meets the needs of potential clientele.

The company description section briefly addresses the nature of the business with a suggestion or suggestions of how the company intends to meet the market needs. The products and/or services offered by the business should target specific organizations or individuals who identify with the listed needs.  For a business plan to be successful, it must indicate superiority in its ability to meet the needs of all customers, with a touch of efficiency.

The organization and management section includes details of business ownership, organizational structure, details of the management team and aptitudes of the board of directors. Similarly, the section examines the responsibilities of staff with other details of remuneration and staff motivation techniques. This section should be precise yet detailed in order to comprehensively address all aspects such as ownership details, stock, outstanding equity equivalents, past achievements of the board and the management track record.