- Download the Business Plan Template

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- Download the Business Plan Template

  1. 1. WUN International Enterprise Competition Company Name Company tagline (if available) Insert Company logo Business Plan Prepared By Names of group members
  2. 2. Table of Contents Executive Summary......................................................................................................................page Product/Service Plan....................................................................................................................page Product Features & Benefits...............................................................................................page Production..........................................................................................................................page Future Product Growth.......................................................................................................page Management & Organization Plan...............................................................................................page Legal Aspects of the Company...........................................................................................page Management Structure and Incentives...............................................................................page Organizational Reporting & Communication.......................................................................page Market Analysis.............................................................................................................................page Industry Profile....................................................................................................................page Industry Trends...................................................................................................................page Distribution Channels.........................................................................................................page Competitive Analysis..........................................................................................................page Target Market Information..................................................................................................page Consumer Profile................................................................................................................page Pricing Strategy..................................................................................................................page Sales & Marketing Plan.................................................................................................................page Branding.............................................................................................................................page Customer Service & Sales..................................................................................................page Advertising & Promotion.....................................................................................................page Publicity..............................................................................................................................page Website & Internet Strategy................................................................................................page Financial Plan................................................................................................................................page Estimated Projections.........................................................................................................page Projected Financial Statements..........................................................................................page Exit Strategy.......................................................................................................................page Appendix........................................................................................................................................page © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 1
  3. 3. Enterprise Plan The total number of pages included in the main body of the enterprise plan is NOT to exceed 40 pages. Charts, advertisement mock ups, research findings, resumes, and additional support information may be placed in the document appendix to save space in the main body. This is a suggested organizational layout (the sequential order of the main plan headers) of what a well planned enterprise plan could look like, to ensure consistency among teams for investors and judges. We realize that not all sections and questions will apply to all teams, and you may have sections that are not listed here that you would like to add. These questions and secondary headings are suggestions for what you may include and things the judges will be looking for. If a question does not apply to your company (especially some of the operations, legal, and distribution questions…depending on what stage your company is in) this is fine to omit. Executive Summary The executive summary is one of the most important parts of the business plan because it captures the attention of the reader and essentially tells them why your business will be successful and why they should invest their time and finances. It should provide a clear overview of your company and how you see it growing in the future, what value it creates for consumers, and what makes it differentiated in the marketplace. The executive summary should be approximately one page (two maximum), and all the points should flow into your main summary statement of the value created through your company’s unique product/service offering. It is recommended that the executive summary be the last section you write, since you will be very familiar with the workings of your business upon completing the whole plan. Key Points to Include in the Executive Summary − Include the mission statement of the company: should be a direct, focused statement to leave the reader with a clear image of what your business is about − Describe the value your product/service creates for consumers − What does the industry look like, and what sets your company apart from competitors − How is your value differentiated in the marketplace, what is unique about your offering, and what protection does your company have for it − Briefly summarize your target consumers and why they receive value from your product/service − Summarize key financial points about sales projections and profits looking toward future growth © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 2
  4. 4. Product / Service Plan The product/service plan outlines the differentiating features and benefits of your product/service and its development and limitations. Aspects of production and supplier/distributor logistics should be covered here. Product Features and Benefits − Describe what your product/service does − Is your product a commodity, a luxury good or somewhere in the middle of the scale − What are the primary benefits that the customer receives from using your product/service − How are these benefits different from those of competing products/services − What need or problem does this product/service fulfill for consumers − What are the unique features does the product/service have (ex. Design, ease of use, new technology etc.) − Describe any limitations or negative features your product/service may have (high learning curve, limited shelf life, rapidly changing technology, complicated construction etc.) Production − Explain how your product will be produced − Do you have a working prototype (please explain if your product is farther along in the development cycle) − How long do you estimate it will take to get to the next stage of product development − What life-cycle stage is your product/service in (idea conception, market introduction, growth, maturity, decline or stability) − What costs are involved with producing the product and have these been accounted for in your financial plan − Does your company have supplier relationships lined up, and are these newly formed or long-standing − Are you planning on using one or multiple suppliers − Do you have facilities secured to begin production Future Product Growth − Does your industry face rapid change of product/service offerings − Does technology play a factor in the speed at which products need to adapt − What new product/service adaptations should be considered for the future sustainability of this company that would draw on the strengths of this existing product/service © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 3
  5. 5. Management and Organization Plan A summary of the company’s overarching management structure and communications hierarchy, so that the investor gets a clear and early indication of how the company is structured and how this fits in with its overall objectives. Legal Aspects of the Company − Is your company legally established − If so, what is the state of incorporation (S Corp, LLC, partnership, C Corp etc.) − Are you a non-for-profit organization − Are there any special tax exemptions your company benefits from − Has your company obtained trademarks, copyrights, or patents (domestic and/or international) − Are all your intellectual property rights protected, and does this give you a competitive edge over other firms Management Structure and Incentives − What title/role does the founding entrepreneur hold − Who are the other management team members, and what are their titles and job descriptions − What distinct qualifications and areas of expertise does the team have to strengthen the company and achieve designated goals − How is ownership of the company being split between the entrepreneur and the management team − What is the incentive plan for employees and what types of recognition and rewards will be used Organizational Reporting and Communication − What type of organizational reporting structure does your company use (hierarchical, functional, matrix, etc.) − What business values are important for your company to communication across the organization − Will your company be using any external employees or partners (ex. Consultants, partnering firms, industry experts) − If so, what projects or components of your business will they be working on and for how long © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 4
  6. 6. Market Analysis The marketing analysis should demonstrate your knowledge about your industry and competition. This should showcase marketing research data you have done on your industry, competition, pricing structure, and target market. For all numbers you include in this section, please cite sources and explain assumptions made based on marketing research. Industry Profile − What is the current size of the industry for this product/service − How much do consumers spend in this industry, and how many products/service items do they consume annually − What is the approximate average profit for companies in this industry (if available) − In what geographic area are most of your industry competitors located − Explain the projected growth of the industry (ex. Changes expected in technology, new entrants, adapted products) − Is the industry growing, stabilizing, or declining (please expand with data and accompanying analysis) − What important industry factors are you using to measure these changes Industry Trends − What trends impact the industry your company occupies − What effect do these trends have on your business − Explain any assumed seasonal or cyclical trends − Are there any important technological trends that should be addressed Distribution Channels − What distribution channels are in place for your product or service − Are these similar distribution channels to what your competition uses Competitive Analysis − Name the direct competition that exists for your product/service − Are these competitors targeting the same or different markets as your company (please expand with data) − Approximately what market share do each of these competitors hold, and what is the total size of the market − Do any barriers to entry exist in your particular targeted market (both for your company or for competitors) − How will these barriers affect future competition in the industry − Is it predicted that new competition will be entering the industry and when is this projected − What type of indirect competition exists for your company − Are these products/services substitutes or complementary goods, as compared to your product/service − Do they fill the same consumer market need that your product/service fills − What differentiates your product/service from those of your competitors − Perform a SWOT analysis, which lists (strengths, weaknesses, opportunities and threats) © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 5
  7. 7. Target Market Information − Briefly describe your key target market or markets − Is this target market new to your company or do you already have share (and if so how much) − Estimate the number of customers in this market and their buying power (how much do they spend per year) (please back up with marketing research and cite) − Are these consumers brand loyal or do they make their purchasing decisions based on other criteria (could conduct lattering interviews to investigate) − Is your business planning on targeting other markets in the future, and if so when and describe them Consumer Profile − Describe an average customer in this target market (give him/her a name, talk about their age, socio- economic status, profession, hobbies, where they live, marital status, history, friends/family etc.) − If you have interviewed potential customers in your target market, what values are important to them, why do they purchase certain goods, what life priorities do they have − Why do these customers NOT purchase certain goods (this is also key so your company can avoid branding or quality mistakes) − Have you heard similarities between customer interviewees…did any similar words arise that would indicate a belief or attribute that is particularly important or distinctive to this group − What problem or need do these customers have that can be helped with your product/service Pricing Strategy − Upon the launch of your product/service, would you classify your pricing strategy as low cost leader, moderately priced, or premium priced − What is the price range that you have selected for your product/service − Describe your company’s short-term pricing strategies − Describe your company’s long-term pricing strategies − Why is your company choosing to keep the price the same or change the price − Is this pricing strategy similar to competitors, if not, what makes it unique − What market research confirms that these prices fall within the consumers’ reference range − Does the price compliment with the value and perceived quality of your product/service − If you have several different products how do the prices across your product offering relate to each other − Is your company planning on offering discounts, special offers, or an introductory price − If so, how frequently will these be offered, and to which customers (are you targeting certain customers or offering this to the market) − Are you planning on bundling other complimentary goods/services like parts, warranty, customer tech support with your product, and if so what pricing bundles will your company offer © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 6
  8. 8. Sales and Marketing Plan The sales and marketing plan portion should discuss the branding of your company’s image and how it is going to be consistently communicated to consumers. Sales and customer service tactics are also critical to how your company is perceived in the marketplace and should be summarized here. Branding − What type of brand image does your company have − Explain how this image fits with the target market your company is trying to attract − How is your marketing consistent across the mediums to deliver this image − What is your company tagline and logo, and how do they fit with the branding you want to portray − How is your branding unique to your industry (describe competitor’s brand images) − How are the features and benefits of the product/service communicated through the branding strategy Customer Service and Sales − How does your customer service strategy fit with your overall branding − What measures are in place to ensure consistency in the quality of customer service delivered − Will your company directly be selling the product in a store or online, or will you use a distributor (please expand on the strategy behind this decision) − Will any licensing agreements for your product/service be created and what is your pricing for this − How will you train your sales force and provide incentives Advertising and Promotion − How will you advertise your product/service to consumers − What types of marketing materials will you create to promote your business − How do these advertising/promotional plans fit with the lifestyles of your target audience, what aspects of their lives does this tap into − Will you test your marketing on a target group before launching, what reactions are you looking to measure − How much will the marketing/advertising cost in the first year and subsequent years − How are you planning on measuring the effectiveness of your marketing/advertising Publicity − Describe how you plan to generate industry awareness and publicity for your company − Will events be used to generate industry buzz, and if so what are you planning on launching − How will you utilize press releases to get company stories out to the public − Explain how trade shows or other public forums will help publicize your product/service − How often and which events to you plan on attending to raise awareness Website & Internet Strategy − Describe how the Internet will be used to market your product/service − Will you website be an integral marketing tool, and if so will its primary function be to educate, engage, inform, solicit information etc. (please describe) − Will you have any unique information or features on your website − Are you planning on sending out electronic newsletters or other forms of advertising © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 7
  9. 9. Financial Plan The financial plan is a critical tool for showcasing both historical and prospective financial data. The financials should be developed after all the market analysis is complete and you have a clear picture of where the company is heading and the financial milestones that should occur for this to happen. Estimated Projections − Calculate and explain the start-up costs required for your business − How much money will you need to realistically start your business − How will you attain this funding (personal money, friends/family, banks, investors, venture funding etc.) − What expected fixed and variable costs are predicted over the next three years − Calculate your sales and net income projections for the next three years (backup with data and make as reasonable as possible) − Estimate when your business will become profitable and how many products/services need to be sold to attain this milestone Projected Financial Statements that should be included in the enterprise plan − Annual cash flow statements (three years) − Balance sheet − Income statement − Important ratio or trends analysis that is important for backing up arguments Exit Strategy − How do you plan to grow your company over the next several years − How and when are you looking to exit the company − Describe plans for the business succession, sale, public offering, partnership, or merger © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 8
  10. 10. Appendix Resumes of all the team members Financial or data charts that elaborate main points Charts, graphs or extensions of previous sections that were too lengthy to include in the main body Market research findings: (results should appear in the market analysis section) any focus groups conducted, surveys, demonstrations of the product Marketing materials created: include any print collateral, logo design, website screen captures etc. that showcase the company’s branding strategy © 2009 University of Illinois, Urbana-Champaign – Kimberly Sugden 9

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