What are the contents of a business plan and how long should it be? The length of your plan will depend on the nature of your business. A typical plan can be five to ten pages including the following elements: Executive Summary, Company Description, Product or Service Description, Market Analysis, Strategy and Implementation, Management Team and Financial Plan.

You can follow the standard outline but the details you will include for each heading will depend on the type of you business you run. Let’s define each element that you should include in your plan:

Executive Summary. The executive summary should explain the highlights or main points of your plan. This will be the first page of your plan so be sure to make your statements compelling. You can write the executive summary after you have completed all the other pages of your plan.

Company Description. Describe the legal entity of your business, your mission statement, and the history and background of your company.

Product or Service. What kind of products and services do you want to sell in the market? What is your purpose for choosing that/those particular product/s or service/s?

Market Analysis. Based on your marketing research, is there a demand for your chosen products and services in the market? Who is your target market? Be sure to include the demography of your defined market. What marketing strategies do you plan to execute?

Strategy and Implementation. This is the part of your plan where you should discuss how you plan to take on management tasks. Enumerate the steps you intend to do to achieve your short term and long term goals.

Management Team. Who are the members of the management team? What are their specific roles and responsibilities?

Financial Analysis. Your financial analysis must include your previous accounts reports, financial projections, your plans on how to manage your cash flow, and how you plan to utilise the loan, if you are applying for one.

Preparing Your Business Plan

An effective plan is not necessarily a lengthy one. However, it needs to present a detailed, complete and accurate report about your business. Be sure to clearly define your objectives and goals. You do not have to include unimportant details but be sure you don’t omit the essential facts.

Please feel free to contact us for more guidelines on creating your business plan.

Proposals addressing the second part, the impairment methodology for financial assets were published for public comment at the beginning of November, while proposals on the third part, on hedge accounting, continue to be developed.

The new standard enhances the ability of investors and other users of financial information to understand the accounting of financial assets and reduces complexity – an objective endorsed by the Group of 20 leaders (G20) and other stakeholders internationally. IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in IAS 39. Thus IFRS 9 improves comparability and makes financial statements easier to understand for investors and other users.

The IASB has received broad support for its approach. This became evident during the unprecedented global scale of consultation and outreach activity it undertook in order to refine proposals contained within the exposure draft published in July 2009. Round table discussions were held in Asia, Europe and the United States. Interactive webcasts, each attracting thousands of registered participants, have been held, often on a weekly basis. In addition, more than a hundred meetings have been held with interested parties around the world during the past four months.

The views expressed to the IASB during its consultations resulted in the proposals being modified to address concerns raised and to improve the standard. For example, IFRS 9 requires the business model of an entity to be assessed first to avoid the need to consider the contractual cash flow characteristics of every individual asset. It requires reclassification of assets if the business model of an entity changes. The IASB changed the accounting that was proposed for structured credit-linked investments and for purchases of distressed debt. The IASB also addressed concerns expressed about the problems created by the mismatch in timings between the mandatory effective date of IFRS 9 and the likely effective date of a new standard on insurance contracts.

Furthermore, in response to suggestions made by some respondents, the IASB decided not to finalise requirements for financial liabilities in IFRS 9. The IASB has begun the process of giving further consideration to the classification and measurement of financial liabilities and it expects to issue final requirements during 2010.