The Importance of a Business Plan

The business plan is not just a one time use document, it is a living document which helps outline the key aspects of a project during its initial stages.

Early this term, RBC on campus joined the eHub for an Entrepreneurial mindset certificate workshop, and explained the 7 typical sections of a business plan. If you missed the workshop do not fret! This article will explain some of the key details of each section.

1. Introduction

The introduction or executive summery is meant to provide a very simple and basic understanding of a business. It is supposed to be short and avoid the inclusion of jargon and overcomplicated details.

A piece of advice shared by RBC is to bring experience into it! You can briefly mention the background of your experience and credentials that inspired you to start the current new project.

2. Team

The team section must include the management team profiles on all levels, it must explain the ownership structure and the number of people involved in the project.

RBC explained the importance of having a good accountant as a key member. Even if it’s an outside consultant, it can be essential for proper management of all business activity funds.

3. Business environment

Some key topics to discuss in this section are industry trends, the impact COVID19 has (or could have) on business activities, and above all how you’ll insert yourself in the industry and how you will differentiate from others.

4. Marketing plan

A specific target market can go a long way, from proper marketing strategies to gaining the interests of possible grants and funds as it helps shape a proper vision of who you’re catering to.

If you are interested in learning more about marketing strategies there are upcoming eHub workshops covering topics from market research to digital marketing strategies.

5. Operations

This one is fairly direct and discusses in which stage of development is your project in regards to where it is predicted to go.

6. Finance

This section may include balance sheets, income statement, cash flow statement and others.

As mentioned previously, having the advice of an accountant can help maintain this section properly clean which in turn helps with risk management and fund searching.

7. Risks and conclusions

This section is of high importance, you must be honest when discussing the associated risks of your business project.

Being realistic with sources of financing and possible problems during the business development will help you be aware of the areas you must work on and predict before hand what you would possibly face in the future.