A simple BUSINESS PLAN to flesh out your idea. by Cindy Luken • the business • sales & marketing • operations • people • financials the business who are we? what will we do? who will we be? what is our business strategy? what are our core capabilities? (speills PROFIT) Physical Assets Reputation Organisation Financial Intellectual Property Technology how are key risks managed? how do we protect our IP? Sales & marketing why is there a market ? Why will it work? who is our customer? who is our competition? What products will we make and category/sector will we compete in? what is our market entry strategy? what channels will we sell thru & why? how do we market, distribute and sell our product?
what are the sales target? how are sales targets achieved? Operations how is our product mass produced? What does our supply chain look like? How is office/admin set up and run? People who is on the management team & what do they do? Finances What are our financial targets?GSV 500,000 1,000,000 5,000,000 10,000,000COGS 125,000 250,000 1,250,000 2,500,000GM 375,000 750,000 3,750,000 7,500,000STOCK & DISTRIBUTION COSTS 50,000 80,000 375,000 700,000SELLING COSTS 25,000 70,000 200,000 400,000TERMS & DISCOUNTS 25,000 100,000 1,000,000 2,000,000MARKETING COSTS 125,000 200,000 1,000,000 2,000,000OVERHEADS 125,000 150,000 450,000 800,000EBIT 25,000 150,000 725,000 1,600,000AS A % OF SALES ( pink cells can be changed to calculate automatically) % cogs 25% 25% 25% 25% % stock storage & picking (4%) & freight 10% 8% 8% 7% % selling costs (sales people + oncosts) 5% 7% 4% 4% % terms & disc (international exp) 5% 10% 20% 20% % marketing 25% 20% 20% 20% % overheads 25% 15% 9% 8% % EBIT 5% 15% 15% 16%
How is the business being funded - start up & growth?What is our exit strategy?