1. Business Plan
Introduction
• Focus your thinking
• Establish realistic strategy
• Financing and other support
• Reaction by others
Four Questions
• What service or product does your business provide and what needs does it
fill?
• Who are the potential customers for your product or service and why will they
• purchase it from you?
• How will you reach your potential customers?
• Where will you get the financial resources to start your business?
Definition
Document that can convince the reader that the business can produce enough
revenue to make a satisfactory profit and therefore attractive as an investment
opportunity.
Many reasons to write one:
• BP should sell the writer/reader on the business:
– Writer: so that you can go out and do it,
– Reader: to invest in it
• Confidence of knowing the issues
• Improve chances of success
Many Purposes in Real Life
• Bank Financing
• Strategic alliances
• Large contracts
• Key employees
• Mergers and acquisitions
• Mgt team motivation
• New product launch
2. Principles of BP
– No right way: plans can differ
– Be creative but set a limit
– Concise and focused
– Captures energy and personality of business leader
– Include negatives and issues
– Spend some time on it
Sections of a Business Plan
• Cover Page: contact name and info
• Table of contents
• Executive summary
• Company description
• The market
• Competitive analysis
• Marketing & Sales plan
• Operation plan
• Management Structure
• Future developments
• Financials
The Executive Summary
– The single most important part of your business plan
– Need to explain business concept clearly & concisely in a way that leads
the reader to ask for more
– This is the first impression the reader will get about your company/project
– Divide into paragraphs that mirror the sections of your marketing plan
– Keep it brief
– Use bullets
– Include a small chart or graph if it helps clarify a point
– Use space to break-up text blocks
3. The Company: Past, present & future
– Basic factual details about your company
– The Executive summary creates a compelling case for your business's
success, this section fills in the specifics
– Provides information about company ownership, location, type of
company, milestones, products, industry status, funding.
Target Market Description
– Identify types of people / business most likely to be your customer.
Explain their needs
– Demography of target market
– Motivating factors for purchase decisions
– Market Size
– Market trends
The Competition
– Identify competition types – direct / indirect
– Identify your specific competitors
– Determine your competitor’s market share
– Define competitive positions
– Highlight your competitive edge
– Evaluate barriers to entry and potential future competitors
Marketing & Sales Plan
– Summarize your marketing message
– Describe your marketing vehicle
– Additional marketing & sales strategies
– Sales team description
4. Operations Plan
• Location & facilities
• Production & quality control
• Inventory control
• Supply & distribution
• Order fulfillment and customer service
• Equipment & technology
• Financial control systems
– Determine your key operations elements
– Highlight your operational advantage
– Address current / potential operational challenges
Management Structure
– Highlight key team members
– Predict future management needs
– Describe your staffing structure
– Identify Board Members, Advisors and Consultants
Future Development
– Define long term goals
– Establish future milestones
– Assess the risks
– Explore exit options
Financials
– Income Statement
– Cash-flow projections
– Balance Sheet
– Sources & use of funds
– Additional supporting financial statements
Marketing Plan
1. Executive summary
2. Environmental analysis
1. Marketing environment
2. Target market
3. Marketing objectives & performance
3. SWOT analysis
4. Marketing objectives
5. Marketing strategies
6. Marketing mix
7. Marketing implementation
8. Financials
9. Evaluation and control
5. Format & Layout
Choose a clear font:
• ‘Serif’ fonts for body – Garamond, Palatino, Times New Roman
• ‘Sans Serif’ fonts for headings – Arial, Franklin Gothic, Verdana
• Use no more than two fonts
• Be restrained in use of italics, Bold, underline
• Size 10 – 12 is best for body text & 12 – 14 for headings
Charts & Graphs
• Bar charts are useful for showing trends Pie charts are effective for depicting
market composition, etc.
• Pie charts are effective as indicators for market composition
Binders & Folders
• If you use business folders, chose a business color like black, blue or grey
• Have a clear cover sheet with the title page on top
Cover Sheets
• Company name
• Company logo
• Name address, phone number, e-mail
• Date
• Disclaimer
Use a cover letter when sending out a business plan
Web Sites
www.businessplans.org/businessplans.html
www.bplans.com/sp/businessplans.cfm
www.businessplanarchive.org/
