Reference no: EM132220092

Discuss questions: What are the major elements of a typical business plan. Are any of the elements more important than the other? Why/Why not?

If yes, which one, in your opinon?

Order instruction:

1. Answer above "discuss questions".(need list 1 or 2 example to support your idea, use easy words, one page, double space, no any sources)

2. Read below those two students posting and write responses for each two students. Your responses must be substantive and add value to the original post by your colleagues.( 2-3 sentences for each response)

First posting:

The elements of a typical business plan include executive summary, business description, market analysis, organization management, sales strategy, funding requirement, and financial projection. In my opinion, funding requirement is the most important element among all elements.

A company's growth from the seed stage, Angle stage, PE/VC and then IPO. At every stage of a company's growth, the cash flow needed to sustain its operations is the most important. No matter how creative the business plan is and how efficient the company's managers are, in the initial stage of a business plan, capital is significant.

Every project needs its initial money, so how to obtain sufficient capital to support the implementation of the plan is the most important. Take the bike-sharing company OFO as an example. In the three years since its establishment, it has raised a total of 7 rounds of financing and obtained a total of $2 billion.

In the initial stage of the venture, the company got the financing of 1 million yuan. Only half a year later, the company ran out of money and could not even pay its salary. Then it got the financing of 3 million yuan, which enabled the company to continue to operate.

However, due to the lack of a clear business model, the company is still unable to generate positive cash flow and continues to lose money. Internet companies raise prices to make profits by subsidizing the frequency with which users use them, and by creating monopolies when they crowd out rivals. And because OFO is still in subsidy competition and lacks funding, no one wants to finance it anymore, so the company is in trouble.

So, in my opinion, the fund requirement is the most critical element. In the early stage of a business plan, capital is the most important factor, because it can't generate profits yet, and the company needs a lot of investment to develop new products.

Second posting:

The major elements of a business plan consist of an executive summary, business description, market analysis, organization management, sales strategy, funding requirements, and financial projections.

I think the most important element is the sales strategy. The ability to sell can be called goods. Even if the preparations in the early stage are fully perfect, it will fail to sell the products. If there is a good sales plan, you can buy the goods out. Then the funding problem is guaranteed.

It is better to build a cycle of the entire product chain. I think the value of all the goods themselves is limited. What matters is that the brand gives him extra value. Packaging, marketing platforms, and means, after-sales processing, etc. These all require good marketing strategies to implement as planned.