How to Distinguish the Parts of a Business Plan
- 1). Read through the title page and index page. These two pages are introductory pages and will inform you of the owner of the business plan and what you can expect from the business plan.
- 2). Locate the first section of the plan, commonly named the executive summary. You can distinguish this summary from the rest of the business plan, as the summary will highlight the key points of the business, give a brief profile of the business, a list of services or products and introduce the reader to key players and management in the business.
- 3). Read through the business plan until you reach a section that discusses the history, development and goal of the business. This section is often referred to as the business profile and can be identified by the presence of a mission statement, the history and development of the business and who the owners and developers are. In this regard, products and services might also be mentioned and how they appeal to the target audience.
- 4). Identify the section that discusses the target market and given industry. This section can be distinguished from the rest of the business plan due to its extensive research into the market, the industry and the immediate competition on the current market. This section will also include graphs, research and marketing strategies.
- 5). Locate the section with names and titles. This section is the management and business team chapter and it will highlight the key players and owners of the business. It may also briefly name investors and lenders, if applicable. Only a single name may be mentioned if the business is a sole proprietorship.
- 6). Read through the operations section of the business plan. The operation section will include information from the previously mentioned sections (the production team will be responsible for specific products and the marketing strategies will be implemented bi-monthly, for example). The operations section will explain how the business will function and run.
- 7). Identify the section that discusses the risks and obstacles identified for the business. Every business might face obstacles or risks, such as loss of funds or investors, for example. The risks assessment section will outline every risk or obstacle and will provide solutions in case these risks or issues should occur.
- 8). Identify the budget and financial section. It will either be presented as a list of expenses, assets and liabilities or in a budget chart. This section of the business plan will outline where the business is making money, how it is spent and where it will be coming from. It will include fixed expenses, flexible expenses, startup expenses and a list of assets. In other words, this section will reveal the financial status and planning of the business.
- 9). Read through the last part of the business plan, which is the appendix. The appendix will highlight any other relevant and important information for the business, such as approvals, copyright certifications, permits and licenses, logo designs, letters of recommendation, prices of competitors on the market and any other information that may be useful when starting up for the specific business in question.
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