What do we need in a business plan?
Critical Elements of A Business Plan: The Ten Value Drivers
The business plan is perhaps the most important written document you can ever create. It describes all critical internal and external elements and strategies for guiding the direction of your venture’s first several years as well as giving potential investors an idea of the venture’s structure, objectives, and future plans.
It communicates important entrepreneurial management practices, such as how your venture will mitigate risk, and how your venture will manage uncertainty. Most importantly, new business venturing is now about focusing on creating sustainable value.
But which elements of your venture are capable of creating value? And which elements, if not properly managed, are capable of destroying value?
Business planning is the process of uncovering and identifying what creates and drives value in your business; the business plan is the document that communicates your Value Drivers.
The Ten Value Drivers you need in your business plan are listed here:
1. Solid Opportunity and Industry Analysis
2. Business Strategy and Sustainable Competitive Advantage
3. Proven Venture Team and Sound Organization
4. Control of Critical Capital Resources
5. Strategy for Market Entry and Traction with Customers
6. Strategy for Marketing and Sales
7. Strategy for Managing Rapid Growth
8. Strategy for Managing a Networked Enterprise
9. Sound Financing Strategy
10. Viable Exit Strategy