Element of a Business Plan


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This presentation accompanied the "Crafting Business Plans for Social Good Startups" class with instructor Sang Lee, where attendees were able to learn how to transform their ideas into working business plans.

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Element of a Business Plan

  2. 2. Purpose of a Business Plan 1 Acts as a dynamic roadmap for operating and growing your business 2 Keeps your team on the same page at all times 3 A well-written business plan is often one of the first things investors want to see
  3. 3. Key Elements Executive Summary1 2 3 4 5 6 7 8 Investment Highlights Business Strategy Brand & Marketing Strategy Company Structure Industry & Regulatory Analysis Financial Overview Exit Strategy
  4. 4. 4 A concise description of the company and the service or product it aims to provide Why the company was founded and what specific needs the product addresses Where the company is located, when it was founded, legal structure, ownership info This is often the only read section of the plan. Keep it concise but informative. ! Executive Summary
  5. 5. As the value proposition, this section highlights reasons that investors should be interested in your business. Examples include but are not limited to: A strong growth market1 2 3 Novelty of the product or service Flexible Execution Paths! Think of this as the “pitch” of your business plan. Highlight everything that would attract prospective investors. 4 Revenue Generation Investment Highlights
  6. 6. Strategic Overview This segment should be a high-level overview of your company’s strategic position within its industry. o How the company’s service creates value o Why your company will attract clientele o Address whether there is a gap within the industry that your company will be able to fill o Potential risks and how you will overcome them Product Description This section should elaborate on the product overview included in the Executive Summary. o Comprehensively break down and explain the unique features of your product. o Images should be used to give investors a clear understanding of the product provided by your company 1 2 Business Strategy
  7. 7. Describe the industry in which your company operates o Market Size o Historic & projected growth o Current Trends o Potential evolution Overview of primary target market o Size o Demographics Market Analysis Market Penetration Describe major competitors as well as any barriers of entry Strategic position of your company o Competitive advantages o Market opportunities o Product pricing (demand, competitive, cost-plus, etc.) Brand Creation Explain how your company will build viewership, followers, and engagement o Client acquisition strategy o Conferences and networking o Social media Brand Marketing
  8. 8. o This section is flexible and should accurately reflect how your company is organized o Explain why the company is structured the way it is o Delineate the responsibilities and functions of each team o Highlight management team’s experience Position Relevant Experience Position Relevant Experience Position Relevant Experience Company Overview
  9. 9. Industry Regulations / Regulatory Hurdles o Regulatory barriers to the company’s entry o Explain how your company will comply with regulations o Describe any operational or cost impact of the compliance process Regulatory Overview
  10. 10. Pro Forma Projections o Forecasted income o Historical financial data o Drivers of revenue o Forecasted balance sheets o Forecasted capital expenditure budgets Pro Forma Projections Exit Strategies o Merger, acquisition, or IPO o Each strategy should be thoroughly explained and realistic Financial Overview
  11. 11. What to Avoid Poorly Written1 2 3 4 5 6 7 8 Inconsistent Formatting Vague or Too Detailed Unrealistic Assumptions Inadequately Researched Doesn’t Address Risks Ignores Competition Merely Describes Instead of Plans
  12. 12. @RoCSpeaks facebook.com/ReturnOnChange Centre for Social Innovation 601 West 26th Street 325-21 New York, NY 10001 www.returnonchange.com Contact