7.      +Understand+the+components+of+a+business+plan.

7. Understand the components of a business plan.

To properly develop a business plan the creators need to thoroughly inderstand the customers and market the business will be entering into. When developing they should forsee and plan for all potential outcomes, including obsticals your business may make or how you will handle successful growth. It is also helpful to include resumes of every person involved in formation of business and a biography of the management for potential investors and anyone who will be working with the business like potential investors and vendors.

As for the Business Plan format I didn't think I could explain it better, or more clearly, than what I found on bplans.com

Company Description: Legal establishment, history, start-up plans, etc. Product or Service: Describe what you’re selling. Focus on customer benefits.
 * Executive Summary**: Write this last. It’s just a page or two of highlights.
 * Market Analysis**: You need to know your market, customer needs, where they are, how to reach them, etc.
 * Strategy and Implementation**: Be specific. Include management responsibilities with dates and budgets. Make sure you can track results.
 * Web Plan Summary**: For e-commerce, include discussion of website, development costs, operations, sales and marketing strategies.
 * Management Team**: Describe the organization and the key management team members.
 * Financial Analysis**: Make sure to include at the very least your projected Profit and Loss and Cash Flow tables.

A business plan can include all of the elements included, or it can include a combination of only a few of those elements. A business plan can vary in length and the amount of details that it includes. There is no "set" business plan template or definite rules for creating a business plan. Every plan will be different.