1. PREPARATION OF A BUSINESS PLAN FOR SMALL BUSINESSES

2. DEFINITION OF A BUSINESS PLAN
Set of documents prepared by a firm's management to summarize its operational and financial objectives for the near future (usually one to three years) and to show how they will be achieved. It serves as a blueprint to guide the firm's policies and strategies, and is continually modified as conditions change and new opportunities and/or threats emerge. Read more:

3. BENEFITS OF HAVING A BUSINESS PLAN
Aids in obtaining financing
Motivates
Sets a sense of direction
Serves as a measure of performance
Can be used to plan

4. KEY ELEMENTS OF A BUSINESS PLAN

5. EXECUTIVE SUMMARY
An executive summary of a business plan is an overview. Its purpose is to summarize the key points of a document for its readers, saving them time and preparing them for the upcoming content.

6. BUSINESS DESCRIPTION The name and location of the business
The nature of the business and product
Legal structure of the business
Objectives and mission statement

7. BUSINESS ENVIRONMENT ANALYSIS
Target market
Customer Needs
Location

8. INDUSTRY BACKGROUND
Description of the industry in which the business operates.
Size of industry
Demand patterns
Industry standards
Key competitors and level of competition
Potential for growth
Likely impact of environmental factors

9. COMPETITOR ANALYSIS Who are your main competitors
How do they promote themselves
What are their strengths and weaknesses
What is their perceived image
Are they successful and why

10. MARKET ANALYSIS
Customer needs
Where are they
How to reach them

11. MARKETING PLAN
Price
Place
Promotion

12. OPERATIONS PLAN Cost of production Machinery Labour Materials
Facilities
Processes

13. MANAGERIAL SUMMARY
Management structure and personnel
Staffing

14. FINANCIAL PLAN Profit and loss Cash flows Balance sheets Breakeven
Source of funds
Business ratios
Assumptions

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