Now that your business ideas have solidified and taken root, time must be taken to put them into a cohesive and coherent form; this is the first step towards running a business. The first two components that a business plan ought to be comprised of will include the executive summary and the management or organizational summary of the business, depending on the type of plan or format being used.
The First Sales Pitch: The Executive Summary
The first section to be tackled in writing a business plan includes the executive summary which is a brief overview of the business organisation. In two pages or less, the executive summary will give prospective investors a reason to invest in the business. An executive summary will be the business plans first sales pitch, and should consist of solid, substantiated facts that will clearly establish a competitive advantage in the chosen target market.
As the first and in some cases the only part of the business plan that a prospective investor will read, the executive summary should inspire action and differentiate the business from its competitors; brief summaries should be made of:
- The mission, vision, business and strategic objectives of the business
- A brief description of the product
- A description of the target market and what makes it unique in its chosen market
- Any problems that can be solved by the product and alternatives to the product
- Major conclusions in how the product will fare in the market
- Financial requirements of the business
After the business idea has been sold by the executive summary, depending on the business plan format the next step will be to compile the management or organizational summary of the business. To begin, a short portrayal of the chosen business industry and how the product will occupy the niche will suffice; any developments, negative or positive that may affect the business must also be listed in order to show understanding of the industry and capacity to counter eventualities.
The management team of the business is a key element that can promote the success of the venture. Including the details of the various expertise, responsibilities, experience and services that the business owner and his or her business partners can provide to improve the business product offering will increase success. Accordingly, the organizational structure of the business should be detailed, and meticulous attention should be paid to:
- The legal aspects and company registration of the business
- The companies hierarchical organization
- The company function; whether it will be a service, manufacturing, retail or wholesale business
A Rocky Start Made Easy
As the business plan grows and the effort of collecting and compiling information becomes daunting, take some advice from an article in the business management idea section of The Economist, published on the 27th April 2009, entitled "Entrepreneurship" which states, "Entrepreneurship is the special collection of skills possessed by an entrepreneur... Entrepreneurs are people who find ways round business difficulties; they persevere with a business plan at times when others run for the shelter of full-time employment elsewhere."
Sharon Kasanda - Sharon Kasanda Suite 101.com Contributing Writer Sharon Kasanda is a contributing writer on Suite 101.com. She completed her ...
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