The next section also comprises three components and demonstrates how you will ensure that your business idea is a viable one. These components are designed:
To prove the financial viability of your business
To communicate how your business will be organised and promoted
To enable you to plan your approach for the next 3-5 years
Understanding who your customers are is the first step. The second, is planning how you will reach them. This component examines how you will get the word out to the right people that you are in business.
Depending on your type of business, this component may be very short. It details the operational structure of the business you will be running plus what materials, equipment and staff you will need to get started.
Your financial plan tells you when you should expect your business to become profitable and prompts you to think about the best and worst scenarios for your business during its first few years in operation.