Complete Business plan contents


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Complete Business plan contents

  1. 1. Business Plan - Typical Contents Executive summary What is the business? What is the market? What is the potential for the business? Forecast profit figures Funding requirements Prospects for the investor/ lender Description of the business What is the business? A brief description of the business idea and why it should be a success History of the enterprise and its ownership Information about the entrepreneur’s qualifications, experience and financial status Location Products and services A description of the product and what it does An explanation of ways in which the product is distinctive and unique Analysis of the competition How the product will be developed and what new products are being considered as replacements Intangible assets & protection (e.g. copyright, trade marks) The market Size and expected growth of the market Analysis of market by segments Identification of target segments
  2. 2. Competitors - who they are, ownership, size, market share, likely response to the challenge Customers (existing & potential) - who they are, how they buy, why they buy Distribution channels Situational audit (where are we now?) This involves data collection and analysis Purpose of data collection and analysis: Determine which opportunities to pursue Identify SWOT Identify competitive advantages Provide a background for the formulation of strategy Main analytical techniques: PEST/ PESTLE analysis SWOT analysis Competitor analysis Marketing audit Statement of aims and objectives (where do we want to go?) A statement of what the business should achieve over a five year period Aims should be expressed in terms of hierarchy of objectives becoming progressively more detailed and specific Vision - what the organization will be like in the future Mission statement - a statement of the overall purpose and aims SMART Objectives - quantitative goals. Functional objectives - objectives for the functional areas Strategy and tactics How are we to get there? Strategy is the broad approach to the achievement of objectives Summarizes how to fulfil the objectives
  3. 3. Tactics refer to the details of the strategy e.g. the promotional mix The detail will be contained in programmes and budgets Marketing: key questions to be answered Who are our customers? Who are our competitors? What is the size and growth rate of the market? How is the market segmented? What is special about our product or service? What are our competitive advantages? What is our marketing strategy? Marketing plan Market research Segmentation and targeting Detailed outline of the product or service Unique selling points Chosen pricing strategy Promotional plans Distribution strategy (including online) Customer service strategy Operations plan Physical location The production process Facilities Equipment Scale & location of operations Capacity - potential and effective ICT strategy Engineering and design support Materials required Inventory levels and stock control plans Purchasing arrangements
  4. 4. Sources of supply of key resources Quality control plans Staffing requirements Management and organization Organizational chart Details of senior management Corporate governance Staffing requirements Key personnel Recruitment and selection Training Rewards (financial & non-financial) Labor relations Employment and related costs Forecasts in the business plan Sales forecast Forecast profit and loss account (income statement) Cash flow forecast (cash budget) In each case this should be a month by month forecast for a minimum of two years Forecast balance sheet for each of the first two years The assumptions behind the forecast should also be included Financial data Investment appraisal - payback and discounted cash flow Break even analysis Evaluation criteria for performance review Ratio analysis: net profit margin, Gross profit margin, return on capital employed, liquidity and solvency analysis
  5. 5. Financing required Details of capital required and uses The plan must include details of the external finance required This will be equal to the finance required less finance raise internally from existing owners and from operations The plan will outline how it is proposed to raise the finance Sources of finance: Short, medium and long term; Debt v equity