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The 5 Core Components of any Business Plan


Whether you have a business plan, have decided you don't want one, or are "starting to tomorrow", it's important to know what should be in a business plan.


We're experts in writing business plans so we've come to learn what the 5 critical components of a business plan are.


So, in this blog we want to give you some insight into what these key components are, and the most important information you want to include in each section of your business plan.


Here's our top 5 components of a business plan:


#1 - Management and organizational summary


The number one section that we always recommend is the management and organizational summary.


More specifically, have the organizational structure and organizational chart in your business plan.


Use a simple tool like Canva (no, we're not sponsored, we just love Canva), to make an organizational chart, sort of like this:




It's super easy to make and (clearly) doesn't have to be the most beautiful thing in the world.


That said, it's very important to not only highlight what the organizational structure looks like, in addition to describing what each key role entails, as well as the approximate compensation strategy.


This will give whoever reads the business plan (investors, lenders, partners, staff, etc.) an idea of what the company structure will be.


#2 - Environmental scan


An environmental scan is a fancy way of saying "market research" for a business plan. However, this is just a bit more targeted.


"Research is what I’m doing when I don’t know what I’m doing." – Wernher von Braun

An environmental scan is a compilation of research that understands some of these topics:

  • Consumer demographics,

  • Potential size of the target market,

  • The geographic and location details of your target market,

  • Considerations for the area,

  • Opportunities or gaps within the market,

  • Competitor details.

Some of this info can be highlighted in other sections like the marketing, sales, and even risk sections of a business plan, but here is a great spot to include all this info about the market, and prove that you know your stuff.


#3 - Sales and marketing plan


What is a business plan without sales and marketing?


Empty. That's what we think at least.


But this is arguably one of the most important parts of a business plan because for a lack of better words, this describes how you're going to make money.


Some of the important concepts and info with regards to sales and marketing to include in your business plan are:

  • Sales forecast,

  • Sales channels,

  • Marketing channels,

  • Digital marketings strategy,

  • Rollout plan for marketing and sales,

  • Target consumers and demographics.

In a nutshell, you want to tell whoever is reading the business plan how you're going to reach people, how you're going to make money, and who you're going to sell and market your products and services to.


Because this is such an important part of a business plan, it's really important you know exactly how to format this.


If you're not too sure, reach out and send us an email and we can chat about your business plan.


#4 - Operations model


An operations model can be a finicky part of a business plan, but it's important nonetheless.


Why it can be tricky is because there's a lot of different ways that you can write this, and a lot of different pieces of information that you can include.


Commonly, here are the things that you may find in an operations model:

  • Product & service rollout plan,

  • Logistics and supply chain model,

  • Value chain model,

  • Inventory management systems,

  • Product & service delivery model (how you're going to get things to your customers).

It's important in the operations section of your business plan to include only what's relevant to your business.


If you don't have inventory, and only offer services, then the best option may be to include a delivery and value chain model, or even a service rollout plan to demonstrate the timeframe of when you plan on offering your products and services to customers.


#5 - Financial model


You often see people say "cash is king".


Well, so is the financial model.


Generally, on a business plan you want to include a few different models:

  • A P&L model, or "profit and loss", to show income and expenses,

  • A forecast, to demonstrate revenue and profit in a few different scenarios for the future,

  • A balance sheet.

At ASC, we aren't accountants or financial gurus... But we know some!


It's always a good idea to consult with an accountant or financial professional if you're learning how to prepare these financial models and documents.


That said, even if you prepare rough estimates for your business, it is going to look great on your business plan.


A little bonus...


Since you've made it this far. Something that is always necessary on a business plan is an Executive Summary.


This is the summary at the start of a business plan that essentially summarizes the entire document in just 1 page.


Yes. The whole thing, in one page.


Think of it as a TL;DR for investors, banks, or other interested parties.


How we always recommend writing the executive summary is to take each section of a business plan, and summarize the key points and ideas into one paragraph. This way, you'll have 5-7 small paragraphs on a page summarizing your entire business.


These can be tough to write, just like the rest of a business plan if you're unfamiliar with them.


So, our best recommendation is to talk to an expert... Not to toot our own horn, but like us! The folks at ASC has over 7 years of experience writing and perfecting business plans, so we know how to speak to them, and we know the nuances of them!


If you want to get your business plan started the right way book your free consultation with us, and let's get started.

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