For me personally, there’s no such thing as one being more important than the other when it comes to various aspects of a business plan. But if I have to choose one, I would definitely say the very first section that opens up be it an executive summary or business description would be of significant importance. If your opening is weak, no one is going to go into greater detail.
Let’s take an example, you don’t just go throwing the business plan everywhere. And, the places that you give your business plan to receive lots of other similar proposals as well. They have a limited amount of time for this particular task and with that short time span and multiple options to choose from, you just have to have a perfect document in place (Morris, Schindehutte & Allen, 2005). If your opening isn’t captivating and tailored to them, they’re very unlikely to go through the entire document nor support your business plan.
My focus towards the opening being important doesn’t simply mean that the sections to follow are not of any importance. They’re equally important. Your executive summary may be strong, business description is strong but if you fall behind with organization management - you are unlikely to get a positive outcome (Peters, 2010). Thus, every single component including the executive summary, business description, organization management, market analysis, sales strategies, funding requirement and financial projections are all vital. Those details should be clearly stated in proper understandable language and presented well. Customizing it to the particular organization or company you’re writing to adds more value and along with the chances of a success. To stress the point that every component/section in a business plan is of importance, let’s look at the content and their use for each of those sections:
Executive Summary: When the business plan is quite long, this is used. It sums the entire plan in short, understandable language. It helps you get noticed.
Business Description: For anyone looking to support you, they need to know what they’re getting into. And, the business description provides just that.
Organization Management: It is equally important for the one going through the plan to know the formation of the organization. They need to know who are the key players and their role in the team. The idea is never great alone, it needs a great team, committed and motivated towards their goal for success. This shows the exact picture of the same by not only listing the names but also their background, duties, and expertise.
Market Analysis: It studies the market to see if it’s appealing or not. Basically SWOT analysis is performed as part of this. It provides a clear picture of the strengths, weaknesses, opportunities, and threat.
Sales Strategies: As part of this the sales target is set and lists the identified steps to meet the target. It also helps to choose the desired sales strategies which suit to the defined target market.
Funding Requirement: Is it another important component as it lists what you expect from the other end and also lists what’s in it for them to take the offer. It just doesn’t have to be funding but any other kind of requirement that you’ve.
Financial Projections: These projections help get the serious attention of the investors. Having a mid-term or short-term projection shows the direction you’re taking and what you expect the business to give back (Velez-Pareja, 2010). It also grabs the attention of the investors and gets them interested in those projects are logical and appealing.
That is why I believe that every single component is important as one falling behind will mean that your entire business plan crumbles with it.
References
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: toward a unified perspective. Journal Of Business Research , 58 (6), 726-735.
Peters, G. (2010). Executive Summary: Mind the Gap. Business Strategy Review , 21 (2), 84-84.
Velez-Pareja, I. (2010). Forecasting Financial Statements and Financial Valuation of a Business Plan. SSRN Electronic Journal .
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For me personally, there’s no such thing as one being more important than the other when it comes to various aspects of a business plan. But if I have to choose one, I would definitely say the very first section that opens up be it an executive summary or business description would be of significant importance. If your opening is weak, no one is going to go into greater detail.
Let’s take an example, you don’t just go throwing the business plan everywhere. And, the places that you give your business plan to receive lots of other similar proposals as well. They have a limited amount of time for this particular task and with that short time span and multiple options to choose from, you just have to have a perfect document in place (Morris, Schindehutte & Allen, 2005). If your opening isn’t captivating and tailored to them, they’re very unlikely to go through the entire document nor support your business plan.
My focus towards the opening being important doesn’t simply mean that the sections to follow are not of any importance. They’re equally important. Your executive summary may be strong, business description is strong but if you fall behind with organization management - you are unlikely to get a positive outcome (Peters, 2010). Thus, every single component including the executive summary, business description, organization management, market analysis, sales strategies, funding requirement and financial projections are all vital. Those details should be clearly stated in proper understandable language and presented well. Customizing it to the particular organization or company you’re writing to adds more value and along with the chances of a success. To stress the point that every component/section in a business plan is of importance, let’s look at the content and their use for each of those sections:
Executive Summary: When the business plan is quite long, this is used. It sums the entire plan in short, understandable language. It helps you get noticed.
Business Description: For anyone looking to support you, they need to know what they’re getting into. And, the business description provides just that.
Organization Management: It is equally important for the one going through the plan to know the formation of the organization. They need to know who are the key players and their role in the team. The idea is never great alone, it needs a great team, committed and motivated towards their goal for success. This shows the exact picture of the same by not only listing the names but also their background, duties, and expertise.
Market Analysis: It studies the market to see if it’s appealing or not. Basically SWOT analysis is performed as part of this. It provides a clear picture of the strengths, weaknesses, opportunities, and threat.
Sales Strategies: As part of this the sales target is set and lists the identified steps to meet the target. It also helps to choose the desired sales strategies which suit to the defined target market.
Funding Requirement: Is it another important component as it lists what you expect from the other end and also lists what’s in it for them to take the offer. It just doesn’t have to be funding but any other kind of requirement that you’ve.
Financial Projections: These projections help get the serious attention of the investors. Having a mid-term or short-term projection shows the direction you’re taking and what you expect the business to give back (Velez-Pareja, 2010). It also grabs the attention of the investors and gets them interested in those projects are logical and appealing.
That is why I believe that every single component is important as one falling behind will mean that your entire business plan crumbles with it.
References
Morris, M., Schindehutte, M., & Allen, J. (2005). The entrepreneur’s business model: toward a unified perspective. Journal Of Business Research , 58 (6), 726-735.
Peters, G. (2010). Executive Summary: Mind the Gap. Business Strategy Review , 21 (2), 84-84.
Velez-Pareja, I. (2010). Forecasting Financial Statements and Financial Valuation of a Business Plan. SSRN Electronic Journal .