This essay discusses the components of a business plan and the purposes of a business plan. A business plan is a formal document summarizing the operational and financial objectives of a business. The components of a business plan include executive summary constituting company profile and goals, history, financial information, and product or service. Secondly, the product description includes the product life cycle and research activities. Thirdly, the market analysis describes the business industry, competitors, and the target market. Therefore, these components form the chief purposes of a business plan. Fourthly, the company organization entails the members of the company and their respective roles. Fifthly, the marketing and sales element discusses the marketing penetration and sales strategy. Lastly, business financial information includes both historical data and future financial projections. In conclusion, a business plan is vital to all forms of business.
Read more on the components and purposes of a business plan at
THE PURPOSES OF A BUSINESS PLAN AND ELEMENTS OF A BUSINESS PLAN
There are various purposes of a business plan. Firstly, a business plan is a blueprint detailing how a business will generate profits. A sound business plan contains the information needed for the effective operation and management of the company. Secondly, a business plan is vital for marketing, operational, and financial planning purposes. The latter helps to demonstrate the viability of the venture, which is primary for all forms of businesses. Thirdly, a business plan is a roadmap that keeps the entrepreneur focused and motivated. Fourthly, a business plan ensures a better understanding of the business industry and the competitive landscape. As a result, organizations can leverage ways to gain a competitive edge. Lastly, a business plan is a prospectus for potential investors. In effect, understanding the components of a business plan is primary to any business venture.
Read more on the purposes of a business plan and elements of a business plan at
THE FORMS OF BUSINESSES AND ADVANTAGES OF DIFFERENT BUSINESS OWNERSHIPS
There are different forms of businesses with varying legal structures and rules. Firstly, a sole proprietorship is an unincorporated company owned by one individual only. It is relatively easy and inexpensive to establish. However, the owner bears all the risks incurred. Secondly, a partnership is a business owned by two or more people. There are general and limited liability partnerships. Partnerships offer more flexibility but also have greater exposure to risk. Therefore, the components of a business plan are crucial for business incorporation. Thirdly, Limited Liability Company (LLC) exists as its legal entity, separate from its owners. Thus, the owners have limited liability for the operations and debts of the business. Lastly, Corporations are a separate legal entity created by shareholders. The purposes of a business plan ensure effective operation and management of all types of organizations.
Read more on the forms of businesses and advantages of different business ownerships at
Additional attachments
>> Download
