Elements or contents of a solid Business Plan

Elements or contents of a solid Business Plan

Project report or business plan is a written statement of what an entrepreneur proposes to take up. It is one kind of course of action about what the entrepreneur hopes to achieve in his business and how is he going to achieve it.

A good project report should contain the following contents or elements:

General information: Information on product profile and product details.

Promoter: His/her educational qualification, work experience, project related experience.

Location: Exact location of the project, location advantages etc.

Land and building: Land area, construction area, type of construction, costs of construction, detailed plan etc.

Plant and machinery: Details of machinery required capacity, costs, various alternatives available, costs of miscellaneous assets etc.

Production process: Description of the production process, technical know-how, technology etc.

Utilities: Water, power, costs estimates, sources of utilities etc.

Transport and communication: Mode, a possibility of getting, costs etc.

Raw material: List of raw material required, alternative raw materials, sources, costs etc.

Manpower: Manpower requirement, sources of manpower supply, a requirement for training, costs etc.

Products: Product mix, estimated sales, distribution channels, competitions and their capacities, product standard, product substitute etc.

Market: End-user of product, distribution of market as local, national, international, sales promotion devices, proposed market research etc.

A requirement of working capital: Working capital required sources of working capital, the extent of credit facilities available etc.

The requirement of funds: Project’s overall costs in terms of costs of land, building, machinery, miscellaneous assets, preliminary expenses, working capital etc.

Cost of production and profitability of the first ten years: Probable costs of production and expected profitability of the first ten years etc.

So, these are the various elements or contents of a good business plan or project report.