The Main Parts of a Business Plan

Business: Cambridge International GCSE (2027 Exams), topic 1.3.14

The Main Parts of a Business Plan

There are lots of different ways to structure a business plan. However, some sections are very important and are almost always included.

Executive summary

Executive summary

  • The executive summary should be a concise overview of the entire business plan.
Mission statement

Mission statement

  • A mission statement says what a company wants to achieve.
Products or services

Products or services

  • This section should clearly describe which products or services the company sells and why customers will benefit from this.
  • This also may include what a product’s unique selling point (USP) is. The USP of a product or service is how this product or service is different (or unique) from the products or services offered by the competition.
Market analysis

Market analysis

  • This will include an in-depth analysis of different aspects of the business’ environment.
  • Analysis of competitors – Who the main competition are and where they are positioned in the market.
  • Analysis of customers – The different customer segments and which of these will be the ‘target market’.
Organisation and management team

Organisation and management team

  • This will outline the company’s organisation structure and provide personal details of the owners and other important personnel.
Production details

Production details

  • This will be outline how a firm will produce its products or provide its services.
  • This includes things like the location of factories, who the suppliers will be, what materials will be needed and how much they will cost.
Finance

Finance

  • This section will outline the investment that is needed to start up a business, as well as objectives for revenue and profit.
  • Cost and profit - This includes detailed outlines of the forecasts for cost, revenue and profit.
  • This section usually includes a cash-flow forecast and projected profit and loss account for the first 12 months of trading.
  • Sources of finance - This section often includes details of how a company will fund investment if it is required.

Test yourself on The Main Parts of a Business Plan

  • Which of the following is not a key part of a business plan?

  • Which of the following are key parts of a business plan?

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