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January 2023

Businesses of all sizes need a documented plan to have clear direction. Although writing a business plan may seem daunting, it is an essential step in going from idea to a tangible entity.

Here are the seven key components that need to be outlined in any business plan.

1. Executive Summary

The person reading your business plan should be able to get a sense of what your business does, its achievements to date and the state of its finances by reviewing the executive summary.

2. Company Description

The story of how the business was founded, the mission statement and vision are needed for this section. Also describe your business and what it offers.

Make sure you state whether you are a sole proprietor, Limited company, partnership, or corporation and outline when your business started.

Use your Company Description to highlight any competitive advantages you may have, such as leading expertise or cutting-edge technology.

3. Market Analysis and Opportunity

Research is an important element of any business plan. The size of the market, rate at which it is growing and risks facing the industry as a whole should be analysed here.

Of course, this is also the place to demonstrate your deep understanding of your target market.

4. Competitive Analysis

Here you'll need to delve into an in-depth analysis of your competitors’ strengths, weaknesses, offers, operations and financials. Explain the ways in which you expect to be ahead of the game.

5. Execution Plan

How are you going to bring this plan to fruition? In this section, describe your organisational structure and the day-to-day operations, with a special focus on the skills of your leadership team if you have one.

6. Marketing Plan

A business will only have revenue if it successfully attracts customers. Your brand messaging and promotional strategies need to be discussed in the marketing plan, along with the timeline and budget for the execution of all the related activities.

7. Financial History and Projections

An income statement, a cash flow statement and a balance sheet that shows financial liabilities and assets all need to be provided here.

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Preparing a Business Plan