Key Components of a Business Plan | Erich Merkner

A business plan is a document that outlines the critical elements of a project or a business. It allows investors, lenders, and other key players in the business to evaluate the company before investing in it. There are no set rules for what should be included in any other important plan, but here is a list of key components that any company should include in its business plan.

Executive summary

This is a brief overview of the entire business plan. It should highlight the business's major products, services, and key strategies. Also, the executive summary section includes the company's mission statement and vision. It should be written so that it can pass the test of time. Experts' advice is that this section should be the last to be written and shouldn't be more than four pages.

Financial plan

This is perhaps the most significant part of a business plan. It should include details of the company's future sales forecast, budgeted expenses, and projected profit and loss for a period of three years. It should also contain information about the amount to be raised and how it will be used as from where it will come from. One thing to remember, though, is that companies should avoid making their financial plan too detailed that they can't change it in case the market behavior changes.

Management team

A company's management team is a reflection of its professional capacities. It is important to have a good management team that can identify the needs and wants of their customers. The business plan should include details about the company's management team, including the key executives, their background, and qualifications.

Market and competition analysis

A business plan should include an analysis of the competition the company is likely to face. This will help them know their weaknesses and strengths. It will also give them a glimpse of what they are up against. Also, it's important to examine their market share, sales and profits, if any.

Company analysis

This section gives details of the company's history, business model, products, and services. It also covers any past, present, and future problems. This section should include a SWOT analysis of the company.

Marketing, sales, and product plan

This is a detailed plan that includes the company's marketing, sales, and product strategies. It should include details of how the business plans to make its products or services known to its target market. It should also have pricing strategies, distribution methods, and customer service plans.

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About Erich Merkner

Erich Merkner was born and raised in Indiana, and has had an interest in commercial, residential, and industrial construction for as long as he can remember. After completing his carpentry apprenticeship at the local 599 Indiana Kentucky Ohio Regional Council of Carpenters (IKORCC), Erich went on to continue his education at the Ivy Tech Community College, wherein he graduated with an Associate's Degree in Applied Science, where he majored in Construction. He's been certified by the U.S. Department of Labor, and has been in the trade for quite some time.

Erich Merkner has also found a home in Real Estate in addition to his love of Construction. He immediately began purchasing and investing in big properties, but quickly switched his focus in Real Estate to assess and work with the gap in the market regarding Green Initiatives. This is where Erich learned that he can invest in and construct incredibly eco-friendly households that are a better quality, rather than purchasing a new house. Erich jumped into the prospect of renovation and rehabbing a new house, thanks to his extensive background in carpentry. His main goal is to get a house to a 100% energy-efficient rating by combining and harnessing different energy sources in the home. This, in turn, saves people more money and hopefully generates an energy surplus. Erich is passionate about sustainable living, and constantly promotes the idea that electric companies should compensate consumers to adding to the energy grid.