Describe the elements of a formal business plan

What will be an ideal response?

Answer: At a minimum, a formal business plan should describe the basic concept of the business and outline its specific goals, objectives, and resource requirements. A plan to be submitted to banks or investors should include a summary of the business concept (including your product or service and its market potential). It also explains the mission and objectives of the business and provides full background information on the origins and structure of your venture.
The plan should also provide a complete but concise description of your products or services, along with data on your market and competition that will persuade investors that you can achieve your sales goals. Another objective of the plan is to summarize the background and qualifications of the key management personnel in your company. Your marketing strategy should also be described (including projections of sales and market share), and if your product requires design or development, you should explain those plans, as well. You should provide an operations plan that outlines the facilities, equipment, and labor needed for your business, and clearly identify any critical risks and problems associated with your plan. The plan must also include detailed financial projections and requirements (for the first three years of operation), and an exit strategy that explains how investors will be able to profit from their investment.