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Student's Book Form Five
Business plan development
A business plan is developed using the business opportunity generated from the business
ideas. Once an entrepreneur has generated a viable business idea, then, the development
of a business plan starts. The business plan document involves the following components:
business description, industrial analysis, market assessment, marketing plan, operations
FOR ONLINE READING ONLY
plan, management and organisational plan, and financial plan as shown in Figure 6.2.
Figure 6.2: Components of business plan
Business description entails the basic information about the business including the
product (s) offered, owner(s), and location of the business. Market assessment provides
information on the extent of product demand in the market as well as the industrial
analysis. Market assessment mainly focuses on determining strengths, weaknesses,
opportunities, and threats in the market. Based on the market status information obtained
during the market assessment, an entrepreneur may decide on the marketing plan and
strategies to be used in generating more customers (markets) for the product(s). The
operation plan focuses on how the product (s) will be produced and delivered to the
customers. The organisational plan provides the human resources needed and their
roles for the implementation of the business. Finally, the financial plan reflects cost
implications of all items from all sections of the business plan in order to inform the
prospective financial performance of the business.
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