NAMA : I MADE AGUS MERTAYASA

NO : 04
KELAS : DAK SEMESTER IV

FIND OUT AND EXPLAIN THE STRUCTURE/COMPONENTS OF BUSINESS PLAN

(BUSINESS PROPOSAL) :
1. Overview

Before you can get into things like budgets and marketing strategies, you must first give an
overview of your business. This summary must touch all aspects of your business.

What is the structure of your business? Are you a sole proprietorship, partnership and others?
What is the mission and purpose? Where will you be? What is the way you do business? Are you
an online business or will you need experts?

You might feel a little overwhelmed by these questions at first and that's really normal. Just sit
with a notepad and pen, do some research, and start taking notes on the basics of your business.
You will make these questions answered in no time!

2. Products and Services

In a business, you need to offer something to customers. So, your business plan must also explain
the product and / or service.

For the sake of organization, it's a good idea to categorize your products and services. For
example, if you are starting an invitation design business, you might want to classify your design
services by types of events, such as weddings, corporate events, holidays and more.

When doing this, you must also write a brief description of each product or service.
This will not only make a detailed and comprehensive business plan, but will also make it easier
for you to complete the other sections.
3. Sales and Marketing Plan

After you write down your products and services, you need to describe the price structure for that
product. How much will you charge and what reasons do you have to make that price?

Of course, pricing is one thing — but how exactly will you reach customers?

The marketing section of a business plan will write down the details of your strategy and tactics to
implement in order to reach potential buyers. Maybe you plan to launch an attractive social media
campaign or you will place banner ads on targeted sites or blogs. Whatever tactics and strategies
you write here!

4. Competitive Analysis

Unfortunately, there is a lot of competition in the business world. But, it is very important to
recognize who your real direct competitor is. This section will explain who the current competitors
are, as well as some other facts about their business. What did they do well? What things can they
do better?

Also, take the time to think about what really makes you different from this competitor. Is your
product more quality? Do you specialize in certain things that are very special? Do you have more
experience and expertise? Determine what sets you apart, and then explain the method you will use
to consistently outshine competitors.

5. Financial Plans / Budgets

Finally, this is the most important part: the budget. This section must contain financial information
for any and all things relevant to your business.

If you use your business plan to approach an investor or bank, first determine the amount you need
to start and maintain your business. Beyond that, you must explain any business expenses that must
be incurred.

Your budget must detail the money that will come out, but you also can not ignore the incoming
money again. What your income should be projected. What is your break-even point and when?
Finally, you will explain your plan to use funds to benefit your business. Investors are not likely to
invest in your business if it is not profitable. So you have to show that you have thought long and
hard about this is the best place for them to invest their money.

Instead of thinking about this as a hassle you need to check from your list before starting with your
business, see this as the first step on your exciting adventure. Plus, this comprehensive business
plan will get you one step closer to success!

[Link] Summary

Your executive summary should appear first in your business plan. It should summarize what you
expect your business to accomplish. Since it’s meant to highlight what you intend to discuss in the
rest of the plan, the Small Business Administration suggests that you write this section last.

A good executive summary is compelling. It reveals the company’s mission statement, along with a
short description of its products and services. It might also be a good idea to briefly explain why
you’re starting your company and include details about your experience in the industry you’re
entering.

7. Company Description

The next section that should appear in your business plan is a company description. It’s best to
include key information about your business, your goals and the customers you plan to serve.

Your company description should also discuss how your business will stand out from others in the
industry and how the products and services you’re providing will be helpful to your target audience.

8. Market Analysis

Ideally, your market analysis will show that you know the ins and outs of the industry and the
specific market you’re planning to enter. In that section, you’ll need to use data and statistics to talk
about where the market has been, where it’s expected to go and how your company will fit into it.
In addition, you’ll have to provide details about the consumers you’ll be marketing to, such as their
income levels.
A good business plan will present a clear comparison of your business to your direct and indirect
competitors. You’ll need to show that you know their strengths and weaknesses and you know how
your business will stack up. If there are any issues that could prevent you from jumping into the
market, like high upfront costs, it’s best to say so. This information will go in your market analysis
section.

Related Article: 15 Ways Startups Can Raise Capital

9. Description of Management and Organization

Following your market analysis, your business plan will outline the way that your organization will
be set up. You’ll introduce your company managers and summarize their skills and primary job
responsibilities. If you want to, you can create a diagram that maps out your chain of command.

Don’t forget to indicate whether your business will operate as a partnership, a sole proprietorship or
a business with a different ownership structure. If you have a board of directors, you’ll need to
identify the members.

9. Breakdown of Your Products and Services

If you didn’t incorporate enough facts about your products and services into your company
description (since that section is meant to be an overview), it might be a good idea to include extra
information about them in a separate section. Whoever’s reading this portion of your business plan
should know exactly what you’re planning to create and sell, how long your products are supposed
to last and how they’ll meet an existing need.

It’s a good idea to mention your suppliers, too. If you know how much it’ll cost to make your
products and how much money you’re hoping to bring in, those are great details to add. You’ll need
to list anything related to patents and copyright concerns as well.

10. Marketing Plan

In your business plan, it’s important to describe how you intend to get your products and services in
front of potential clients. That’s what marketing is all about. As you pinpoint the steps you’re going
to take to promote your products, you’ll need to mention the budget you’ll need to implement your
strategies.
Related Article: How Turning a Hobby Into a Business Affects Your Taxes

11. Sales Strategy

How will you sell the products you’re building? That’s the most important question you’ll answer
when you discuss your sales strategy. It’s best to be as specific as possible. It’s a good idea to throw
in the number of sales reps you’re planning to hire and how you’ll go about finding them and
bringing them on board. You can also include sales targets.

12. Request for Funding

If you need funding, you can devote an entire section to talking about the amount of money you
need and how you plan to use the capital you’re trying to raise. If you’ll need extra cash in a year or
two to complete a certain project, that’s something that’s important to disclose.

13. Financial Projections

Top 10 Components of a Good Business Plan

In the final section of your business plan, you’ll reveal the financial goals and expectations that
you’ve set based on market research. You’ll report your anticipated revenue for the first 12 months
and your annual projected earnings for the second, third, fourth and fifth years of business.

If you’re trying to apply for a personal loan or a small business loan, you can always add an
appendix or another section that provides additional financial or background information.

The Bottom Line

Every company is different so your business plan might look nothing like another entrepreneur’s.
But there are key components that every good plan needs to have, and it’s always a good idea to
provide a clear and accurate summary of your business goals in your business plan.

Update: If you’re looking for added professional advice to give your business an edge, check out
SmartAsset’s SmartAdvisor matching tool to get paired with a financial expert who can strategize
with you based on your particular needs.