Key elements of a business plan
Khalid Khan
December 27
For an Entrepreneur and business owners, a proper business plan is very important as it serves as the foundation for the success of a business. Recently, due to more investment opportunities for business owners and Entrepreneurs, the Kingdom of Bahrain is attracting more foreign investors.

Therefore, it is essential for business owners to prepare a business plan that could benefit them in the future as per the Bahrain market.

A business plan is also useful for established firms. To observe if the set goals are met or not, every company should review its business plan and update them periodically.
The advantages of writing a business plan
There are various advantages to writing a business plan before a business start-up. Some of them include:
  1. A written plan enables you to work on the shortcomings that come out at the time of business start-up.
  2. Businesses can deeply analyze the target market and make a strategy as per competitors' influence in the market.
  3. A detailed business plan in presentation form will convince the customers and partners to take an interest in your business idea.
  4. An organization becomes familiar with how much profit will be achieved at a specific stage with a particular investment and how much startup capital is required.
  5. It helps an organization to identify the business opportunities that might be left out so that you can plan accordingly.
Drawbacks of not developing a business plan
It is inadequate to kick start a business without a proper business plan. We observe that companies starting their business without a perfect plan does not attain a good reputation in the market. Consequently, a business might incur a loss in the future. Business investment is not the only factor for a successful operation. However, proper planning should always be there for the growth of any business.
Key elements of a business plan
Almost every business nature is somewhat different and the length of the business plan should be within 15 to 20 pages.

Below mentioned are the key elements that are involved in every business plan.

Executive Summary: The initial step of a business plan that provides a company overview, mission statement, and other relevant information on company structure, location, and business operations.

Products and Services: This section provides details of the company's products and services. A company should provide other information related to product durability, warranty period, pricing, and the benefits your product/service provides to the customers. Including information on Research & Development (R&D) will provide a detailed analysis of your product.

Marketing Analysis: For the successful operation of a business it is mandatory to deeply analyze the market. Research enables a business to identify its competition in the market. Companies can identify their weaknesses and work on them to meet the demands of the customers as per their requirements. This eventually helps in a profitable business in the future.

Marketing Strategy: The purpose of developing a marketing strategy is beneficial for an organization to attract and retain customers. A business can outline what strategies they can adapt to sustain a reputation in the market. A marketing campaign, advertising, and other social networking platforms are essential to promote the product or service of a business.

Financial Planning: The companies including future projections and financial planning in a business plan reflects a positive impact on the party. An established firm can include balance sheets, financial statements, and other relevant financial information. However, a startup business can provide information on their future predictions indicating a profitability ratio for them.

Budget: An organization should allocate a budget for smooth business operations. There should a specified budget planned for manufacturing, marketing, resources, development, and other processes involved in a business.

A written business plan serves to be beneficial for any business as it highlights the essential aspects of business operation. Furthermore, it enables to identify the strengths and weaknesses associated with the business by analyzing the market. An organization develops a clear understanding of who their competitors are and what strategies should be made for a good reputation in the market. A business plan also outlines how to reach out to the customers and what plan can be developed for their retention.
Contact us
Office 32, Building 718, Road 2018, Block 320
Manama, Bahrain