paper 4 essential elements of business plan - ronald olusegun olaiya

Essential Parts of a Business Plan

By

Ronald Olusegun Olaiya

Managing Consultant/CEO

Bestride Consulting Limited

04/07/23

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Executive Summary

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Except when it is absolutely necessary, the Executive Summary should not be longer than one page.

It should describe the product/service concept, and in some cases, it should summarize the key issues in a concise manner.

Except where it is otherwise stated, use “bullet” points (•) rather than sentences and paragraphs—your key points will stand a better chance of being understood and remembered.

In many cases, this forms the most important part of the report as many busy readers may form their basic conclusion from this page and may never get past the Executive Summary.

Body of the Business Plan

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This part contains several headings and sub-headings for your Business Plan as well as a list of possible questions and issues that are required to be addressed

In some rare instances there may be overlap

It is important to establish the relevance of such topics to the overall business plan, otherwise they should be dropped

Where there appears to be significant gaps in information that you will have to address, please give it all the efforts required to bridge such gap. Many will require only a moment’s thought and may be addressed in a single sentence. Others may be more demanding.

Product/Service Description

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This part gives the reader a clear view of the business you are proposing to get into.

It contains information on its product or service and how it will look like.

In the course of the above, it will explain how the business will generally fit into commercial picture.

In short we are trying to address the question, “What is this all about?”

The Market

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This section is to give the reader a clear view of the market opportunity for the product or service.

It answers the question, “What is the nature, size and life span of this opportunity?”

Competition

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The purpose of this section is to give the reader comfort that the business is in touch with reality; that it understands the barriers to success and has a plan to overcome them

It answers the questions, “Can this business survive in the market that now exists? Can it survive in the market that its success may create?”

Keep in mind that, in the absence of obvious competition, “the way things are done now ”can be formidable “competition.”

Fit With Your Experience and Skills

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This section should give the reader a sense of how you can make this business succeed.

It answers the question, “What do you offer this business venture?”

Fit With Existing Businesses, Competence & Assets

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If you are expanding an existing business, then this section should give the reader a sense of how the current business can help this new business succeed.

It answers the question, “What do we have to offer this new venture?”

This section also identifies any negative impact the business will have on existing products and services.

It answers the question, “If this business succeeds, will it hurt us somewhere else?”

Entry Strategy

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This section should give the reader a clear view of how you propose to get the business started.

It answers the questions, “What do we have to do to be in the marketplace?

How are we going to get our initial paying customers?”

On-going Operations, Technology & Engineering

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This section gives the reader a sense of the technical and operating feasibility of your business.

It answers the question, “Can this be done?”

Describe the functional technical requirements of the product or service

Is the needed technology readily available:

- internally?

- from a potential vendor or alliance partner?

Growth & Expansion Strategy

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This section should give the reader a clear view of how you propose to sustain the business.

It answers the question, “What do we have to do to grow and remain viable in this market?”

Exit Strategy

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This gives the reader the comfort that risk is under control.

It answers the question, “If we are wrong, if something we hadn’t counted on comes up and we need to get out of the business, how do we do it without “losing our shirt” Or damaging our reputation?”

Regulatory & Legal Issues

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This section answers the question, “Will the regulatory authorities let us do this?”

Resource Requirements (Human, Operating, Technical & Others)

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This section gives the reader an understanding of what resources will be required to launch and sustain this business.

It answers the question, “What will be our investment in resources and where will we get them?”

Financial Projections

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This section is to demonstrate a clear view of the financial feasibility of the business.

It answers the questions: “When will we start making money on this venture?

How much will we make if we meet projections?

If we don’t meet projections?” “When and how will we be able to pay off any loans required?”

Near Term Action Planned

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This section is to answer the question, “If we approve this loan, what will you do in the next several months?”

Describe what you plan on doing in the next 90 days should your Business Plan and loan be approved.

What near term decisions and resources are needed to implement your plan?

The Inescapable Reality

Reality - No matter what, it’s not everybody that can afford to access development funds/loans despite their inherent benefits. Reasons? Answer – Stringent conditions

Way out – All those who cannot access development loans are advised to opt for network marketing or MLM that is usually cheaper, at least to start with

Those who have successfully accessed them are also advised to take advantage of network marketing or MLM to add to their streams of income

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Alternative Lines of Business

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Listed below are links for alternative businesses that can be pursued by interested persons, especially for those who do not have what it takes to access loan facilities from financial institutions:

http://www.sfi4.com/12058229/FREE

http://www.tripleclicks.com/12058229/wave

http://www.profitclicking.com/?r=56cKwzXTq0&p=opp

https://www.profitablesunrise.com/?upline=olusegunolaiya1

About the Author

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Ronald Olusegun Olaiya is a Management Consultant, Online Marketer & Entrepreneur. For enquiries on this write up and other business interests, please contact him via bestrideconsulting@gmail.com; roolaiya@gmail.com or mobile phone +2348184559437

Tags

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Business, Business Plan, Product, Service, SFIMG, Tripleclicks, Profit Clicking, Profitable Sunrise, Network Marketing, MLM, Multi-Level Marketing