An effective business planning outline can be the key to your success. A business plan can help you secure finance, prioritize your efforts and evaluate opportunities.
Today we are going to discuss some points that will surely help to compete with your business challenges.
1. Business Vision
A vision is a clear mental image of what you want your business to be at some point in the future, based on your intentions and aspirations. Having a vision will give your business a clear focus, and can stop you from heading in the wrong direction.
The most reliable way to formalize and communicate the vision you have for your business is to write a vision statement.
A vision statement captures, in writing, the essence of where you want to take your business, and can inspire you and your staff to reach your goals.
2. Action Plan
The action plan in the business planning outline describes how you will run and manage your business. It also addresses the back-office activities that don’t relate directly to providing goods or services to customers.
The marketing and sales plans spell out the steps your business will take to achieve its financial and sales goals.
3. Management Team
The management team is the group of individuals that operate at the higher levels of an organization and have day-to-day responsibility for managing other individuals and maintaining responsibility for key business functions.
The management team is also generally responsible for putting together the business strategy and ensuring the business objectives are met. The Management team is held accountable by the company’s board of directors.
Some organizations may operate a fairly flat team hierarchy with one or just a few layers of management while other companies may operate with several layers of the management team.
4. Executive Summary
An executive summary is a brief introduction and summary of your business plan. It should describe your business, the problem that it solves, your target market, and financial highlights.
A good executive summary grabs your reader’s attention and lets them know what it is you do and why they should read the rest of your business planning outline or proposal. It’s not unusual for investors to make an initial decision just based on reading an executive summary, so it’s important to get it right. We’ll show you how to write an executive summary that sets your business planning outline apart from the rest.
5. Target Market
A target market is a group of customers within a business’s serviceable available market at which a business aims its marketing efforts and resources. A target market is a subset of the total market for a product or service.
6. Market Analysis
A market analysis is a quantitative and qualitative assessment of a market. It looks into the size of the market both in volume and in value, the various customer segments and buying patterns, the competition, and the economic environment in terms of barriers to entry and regulations.
Market share is the percentage of a market accounted for by a specific entity. “Marketers need to be able to translate and incorporate sales targets into a market share because this will demonstrate whether forecasts are to be attained by growing with the market or by capturing share from competitors.
8. Competitive Advantage in Business Planning Outline
Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.
Competitive advantages are attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service.
9. Sales and Marketing Strategy – The best business planning outline
Your Sales and Marketing strategy is your plan for reaching, engaging, and converting target prospects into profitable customers. It’s the charter that guides Marketing and Sales in their daily activities, helping them clarify shared objectives and how to achieve them.
10. Distribution Channels
A distribution channel in the Business Planning outline is a chain of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the Internet.
Distribution channels are part of the downstream process, answering the question.
How do we get our product to the consumer?
This is in contrast to the upstream process, also known as the supply chain, which answers the question “Who are our suppliers?”
11. Sales Forecast – most important part of business planning outline
Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance. It is easier for established companies to predict future sales based on years of past business data.
12. Operations Plan
The operations section of your business planning outline is where you explain in detail, your company’s objectives, goals, procedures, and timeline. An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
13. Day-to-day Business Operations
Day-to-day business operations are the activities that a business and its employees engage in on a daily basis for the purposes of generating a profit and increasing the inherent value of the business as a going concern.
14. Research and Development (R&D) in Business Planning Outline
Research and development (R&D) include activities that companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. The goal is typically to take new products and services to market and add to the company’s bottom line.
15. Management Summary
The management summary is a section that includes all the most important information about the people responsible for the company’s management. You also demonstrate to them who are involved in the development of your company and how’s the whole business is managed.
16. Organizational Structure
An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. The organizational structure also determines how information flows between levels within the company.
17. Human Resource Plan
Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an organization’s most valuable asset—quality employees. Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses.
18. Financial Plan
Financial planning is the task of determining how a business will afford to achieve its strategic goals and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have been set.
19. Revenue Model
A revenue model is a framework for generating financial income. It identifies which revenue source to pursue, what value to offer, how to price the value, and who pays for the value. It is a key component of a company’s business model.
20. Funding Requirement
The total funding requirement is defined as the cost that is identified in the cost baseline. It also includes management reserves. The period funding requirement is defined as the annual and quarterly payments.