A business plan is basically the outline of the goals and objectives of your business. A business plan tells you where are you are and where you want to be. It helps you identify your resources that will help achieve the goals and objectives. Everybody who runs a business or is going to start a business needs a plan to show him the way as he sets up his business. You need a business plan if you are seeking funds for your business. Bankers will grant you a loan only when they know what your business is, how viable it is, what the status of the competition is and what are your resources to achieve the goals.

Internally a business plan helps you communicate with your employees and top management. You can assess your progress and identify the areas for improvement. You can find areas for improvement in terms of technology and product improvement. A business plan can help you rope in new partners and seek venture capital if you are strapped for funds. A business plan helps you identify your strengths and to assign the resources as per the priorities. You need a business plan to manage your cash flow and the people in your business. You need a business plan for valuation and tax purposes if you are seeking to start a new venture or wanting to tap the markets for equity. You may need it to evaluate the need for a new product or service.

The key elements of a business plan are the mission statement, an executive summary, a marketing analysis and a break-even analysis. There is no standard business plan format, but it must include information about the company, its products and services, the management team and the financial analysis. What you include in the business plan depends on your needs and requirements. The business plan must be simple, effective and clearly state your goals. It must have a proper roadmap for tracking project implementation and must assign people for every project. The people must stick to the timelines and implement the project with optimum resources. You must have a system for periodic review of the goals and their achievement. Any deviations from the plan must be assessed and corrections made so that the goals are achieved within the set deadline. Keep the business plan practical and devoid of jargon.

There are different types of business plans for different internal and external purposes. For internal purposes the business plan may not include background information about the company and its management team. Other types of business plans include a product expansion plan, strategic plans, investment plans and annual plans. A strategic plan is a macro level plan that broadly outlines the project. A feasibility plan on the other hand will conduct a cost-benefit analysis so that the management can decide an operational plan will specifically assign tasks and responsibilities along with set time limits to managers. A start-up plan is usually put in place when an existing company launches a new business. This plan is comprehensive and includes all marketing, financial and management team information. It must include projections for at least the first year of operation so that the investors and bankers know its financial viability.

A good business plan is one that achieves its objectives within the set time frame with optimum use of resources. A good plan must bring the desired results and must be implemented by all people concerned. Key elements of a good plan are its simplicity and the involvement of the people responsible for it. Secondly it must have a process for evaluation and follow up so that it stays on track. Cash flow analysis and plan implementation are the two most important aspects of a good business plan.

A standard business plan will have the following components in no particular order. You must include an executive summary of your plan in a few pages. You must highlight the objectives of the business and the mission statement of your company. Next you must include the company description, its brief history and future plans. Give a description of your products and services and how they benefit the customer. Explain the companys future new launches and sourcing of technology for new products. Include a section on market analysis, targeting, segmentation, positioning and promotion. Research the market to find the customer needs, their income, buying habits and how your products can fulfill these needs. Analyze the competition and evaluate your strengths and weaknesses as compared to them.

Have a detailed strategy and implementation assigning responsibilities to key members of your management team. This must also include a sales strategy, pricing, promotional and distribution strategy as well as the value propositions. . Include a financial plan with the projected cash flow analysis, the profit and loss statements, the projected sales forecast, balance sheet and break-even analysis and the relevant financial ratios. Use proper charts and tables to explain your figures .If you are in to e commerce you may include a section on development, marketing and operations of the proposed website. You must include an analysis of the expected streams of revenue from the website and advertising strategies for the same. There must be an explanation of the organizational structure and the personnel plan for the company.

This is a brief description of what a business plan should be. You can refer to sample business plans available on a number of helpful websites. You can get help on calculating the cash flow statement and financial ratios in case you have a problem with numbers. However the business plan for your business will vary depending on your requirements and the type of business. Remember that the business plan is the most important tool for convincing your investors and partners. So devote enough time to its development in order to get the best results.