Skip to main content

What are the typical components of a business plan for a start up cover?



What are the typical components of a business plan for a start up cover?   [8 marks]

 Business plans are critical to the success of any new venture. They serve as the framework for the company and provide benchmarks to see if the goals are to be reached. Plans are keys to help think through the business and keep it on track. Business plan size and scope depend on the specific goals. The following are the business plan components for a start up cover.
Type of business
The type of business is a component of a business plan for a start up cover in the sense that, it should have a well detailed description of what type of business.  The business can either be profitable or non profitable.  Furthermore, it shows which industry it is whether it is in a retailing, manufacturing or any other business.
Management
The information about the management is so critical to the investors whether to invest or not to invest. This describes the management team which includes the experience of the members as well as their previous success. It also includes the top management addresses, their qualification and as well as their credentials. Generally the residential address of a top management member portrays a lot about the person in that are they going to be capable to run the business given the funding.
Company
This involves the detailed description of the company, in the sense that is the image of the business portrays the growth. It also shows if the company strives to change markets, change peoples’ lives and proves durable over time.
Products and services
It involves how the products and services are different. In this, the plan has to show the uniqueness of the product or service. This type of information will determine whether the investor will invest or not, so it has to be captivating so that the investor gains his confidence because the products will surely sell and they tend to benefit at the end.
Funding
In this, it shows the funds that the entrepreneur is putting for the new start cover. It also shows the collateral the entrepreneur has, whether the company is financed largely with debt financing or owners equity. All these factors will determine the attractiveness of the business whether the investors do invest or not.
Use of funds
The business plan should show how the funds will be used. It involves investing either in non-currents or current assets. Investing in assets work to make them better and seek to sell them for a profit.
Forecast
The business plan has to present the forecasted cash flow statements. A cash flow statement is a statement that indicates cash inflow and cash outflow of a business. The cash flow statement helps in considering how cash flow could impact growth. Thereby, developing a cash flow statement helps one understand what their needs are now and will be in the future.











Comments

Post a Comment

Popular posts from this blog

10 bizarre things you didn't know about Valentine's Day

There are many theories surrounding how Valentine’s Day started. The tradition can be traced from the 14 hundreds, meaning that it is 600 years old. Kathleen Davis, deputy editor of Fact Company, uncovers not only the holiday’s history, but some other amazing Valentine’s Day facts. 1. Valentine's Day is the tradition started with the Romans. According to History.com, the day derives from Lupercalia, a raucous Roman festival on February 15th where men stripped naked and spanked young maidens in the hopes of boosting their fertility status. 2. Candy hearts were originally medical lozenges. In 1847, Boston pharmacist Oliver Chase invented a machine that made the lozenge production process easier, resulting in the first candy-making machine, according to The Oxford Encyclopedia of Food and Drink in America. After spotting an opportunity to change the candy business, Chase shifted his mind to candy production with Necco wafers. 3. The heart shape a transformed to a   ...
Post a Comment
Read more

Explain the contents of the projected Statement of Financial Position of a start up venture

 Assets Assets are resources that the company can use to create goods or service and generate revenue. Assets are classified in the balance sheet as current or non-current assets depending on the duration over which the reporting entity expects to derive economic benefit from its use. An asset which will deliver economic benefits to the entity over the long term is classified as non-current whereas those assets that are expected to be realized within one year from the reporting date are classified as current assets. Assets are also classified in the statement of financial position on the basis of their nature as follows, Tangible and intangible: Non-current assets with physical substance are classified as property, plant and equipment whereas assets without any physical substance are classified as intangible assets for example Goodwill are a type of an intangible asset. Inventories balance includes goods that are held for sale in the ordinary course of the business. Invent...
Post a Comment
Read more

The case study of Powertel Communications Zimbabwe

HISTORY       PowerTel Communications (Pvt) Ltd is a subsidiary of ZESA Holdings. PowerTel was licensed as a data services operator in 2004 and in 2009 the scope of its license was upgraded to encompass Internet Access Provision and Cross Border interconnection with regional operators. The registered office of PowerTel (Head Quarters) is located at 10th Floor Kopje Plaza, Number 1 Jason Moyo Avenue, Harare, Zimbabwe, a second office is located in Bulawayo at Fidelity life centre. The company’s services are present in Gweru, Kadoma, Kwekwe, Chinhoyi, Mutare and Masvingo. STAFFING LEVELS       Powertel communications (Pvt) limited has a total of 110 employees on its payroll national wide. Powertel Harare branch has a total of 91 employees, Powertel Bulawayo has a total of 19 employees and other subsidiaries located in Gweru, Masvingo, Kadoma, Kwekwe, Chinhoyi and Mutare, use ZETDC employees.      ...
Post a Comment
Read more