Entrepreneurs guide to Drafting a Business Plan

Sept. 1, 2009 - PRLog -- Every entrepreneur at some point or the other faces the challenge of drafting a persuasive Business plan. Business plans are drafted with various objectives, for instance a Business plan may be required to obtain a license, government grant, approval etc. Invariably a Business plan is required while seeking investment assistance from banks, Venture capitalists, angel investors etc. Here is an attempt to enlist the essential elements required to pitch a convincing business plan.

The Business plan must essentially be built around a unique and lucrative business idea. The potential investors must effortlessly identify the value of the idea. The plan must also demonstrate a well thought out action plan to leverage the idea and how the management team is qualified to accomplish the plan of action. An inherent part of the business plan is the financial plan, clearly elucidating aspects such as the start-up capital, working capital, operational expenses and estimated net profit etc.

The Executive Summary is a précis of the entire Business plan namely the idea, the lucrative potential of the idea, the mettle of the management team and a glimpse into the financial highlights. Although it is the first section of document it is usually written after compiling all the other sections of the plan.

Discuss the idea in the Business/Company Summary. The vision and mission of the company must be clearly enunciated here. In this section it is important to reveal the gap/need existing in the market, how it can be fulfilled with the idea- which is essentially a service or a product and the size of the market that will willingly pay for such a product/service. Discuss the location of the business attention must be paid to how the location complements the idea in terms of near to market, supply chain efficacy, cost efficiency, regulatory terms and incentives, presence of a supporting enterprise ecosystem etc.

In the Startup Summary enlist the expenses in terms of capital equipments, leasehold improvements, licensing fees, deposits, marketing collaterals. Whenever finance is discussed always keep a comfortable cushion to accommodate inflationary impacts, miscellaneous expenses and other scenario like exchange rate fluctuations.

Explain the style of operating the business in the Nature of Business section, for instance, if it is a product business, explain how the service will be offered to the market - through direct sales or retailed via channel partners. The method of sourcing the product, that is, either by direct manufacturing, contract manufacturing or by other means. Explain the ideal pricing range, the cost of the product and margin earned by the business. The scheme of managing the channel partners etc.  

Market Analysis is an essential element of a business plan. This helps the promoters to have a comprehensive understanding of the market. The market analysis must reveal aspects such as the size of the potential market, the viable market, the strengths and weakness of competitors, the unique proposition of the proposed venture, the potential risks and threats that will impede the business growth or its profitability etc.

Marketing Plan should outline the communication strategy of the venture – how they will reach the target market, how they will achieve visibility and credibility for their product/service. Media vehicles that will be deployed to achieve the marketing objectives should also be planned and enlisted in the plan to arrive at a fair estimate of the marketing expenses.

Management Summary is a synopsis of the company’s key executives’ experience, area of expertise and respective responsibilities.  A projected organizational chart in line with the company’s vision could also be drafted in this section.

Financial plan must encapsulate at least 3 years of revenue, expenses and net profit projections. This section must first enlist the assumptions based on which the financial projections are surmised.  Information on capital invested, creditors, debtors, loan repayment plan, stock planning and control, interest paid/earned etc have to be listed out. This will help you to project the Profit and Loss statement and Cash Flow statement. Break even Analysis and Balance Sheet must also be worked out.


Potential entrepreneur must realize that the exercise of drafting a business plan will streamline the thought process to arrive at a plan of action to lucratively exploit a potential opportunity. The process of drafting a business plan helps you to critically evaluate the idea and action plan to identify existing risks and weakness that need to be addressed in order to accomplish the mission.

Rikvin has help clients draft their business plan for their various needs. For more information, visit http://www.rikvin.com

# # #

Singapore Company Registration and Related Corporate Services Under-One-Roof. We provide a fast online service for company incorporation, private limited company formation, business registration and full corporate secretarial services in Singapore.