When developing a business plan that captures the attention of the target audience, it is imperative to pay attention to several essential components of the plan. The executive summary is a vital component that everyone reads first when receiving a business plan because it includes an overall purpose of a company. Its length can depend on the complexity and the extent of the proposed endeavor; however, it is recommended to keep it brief and concise. The second component is a business description because it will present vital data on the type of company one is setting up, what funding is necessary, how products will be developed and sold, etc. The third essential part of any business plan is the description of a company’s marketing strategies. The plan should include the definition of the target market, the projected market share, business positioning, pricing, distribution, and promotional plan.
A competitive analysis usually follows the mentioned components and is composed of several aspects. A business plan can include the identification of potential competitors and create a competitive strength grid to show the target audience risks that a company may encounter. Other elements include information on the service or product line, the requirements for funding, and financials. All of the mentioned components of a business plan are important because including every detail ensures that a company takes the direction it should. Thus, it can conclude that a business plan makes entrepreneurs focus on the most important aspects of business and make them think about future steps, strategies, and tactics to make a project become a reality.