WHAT IS THE BUSINESS PLAN A business plan is a formal statement of a set of business goals, the reasonsthey are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or teamattempting to reach those goals. A business plan also is a document that is designed to serve as an overview ofhow a company will operate and grow its business. A typical business containsand executive summary, product or services description, the makeup of thecompany’s management team, market and competition breakdown, marketingand sales strategy and financial planning and forecasting
Why Do You Need a Business Plan?A business plan is a necessary tool for all businesses. Just as a home isnot built without blueprints or a movie made without a script, you don’tstart a business without a sound and workable blueprint. You now take theinformation you have gathered and put those ideas formally onto paper.EXAMPLE OF BESINESS PLAN BELOW NEXTSLIDE
STRATEGIES FOR BUSINESS PLANThe current competition, their size, and market share• Future competition• The strengths and weaknesses of the competition• How you can overcome their strengths and capitalize on theirweaknesses• Your strengths and weaknesses (use the SWOT analysis in Chapter 4)• Your edge over the competition and your cost to stay competitive
Marketing and sales strategies:Part of your business plan will be a marketingplan, which details how you will find potential customers. A soundmarketing plan includes a mix of methods, including using various media,promotional methods and one-on-one techniques. Address these topics:• Promotional and media methods you will use• Special services or policies• The target market these methods will reach• The effectiveness of each method
4.REASONS FOR CREATING BUSINESS PLAN1.To avoid big mistakes: The last thing you want to do is work on your start-up for ayear, only to realize you were doomed to fail from the start. Many founders learn thehard way that they didnt set aside enough capital to reach their goals, took on partnerswith the wrong skills and resources, or dont have a viable way to make money.Developing and sharing a business plan can help ensure that youre sprinting down theright path.2.To make sure everyones on the same page: Chances are, you are not building acompany by yourself. Ideally, youll have partners, so you can launch faster, smarter,and with less need to pay employees or suppliers. Even if you dont have partners,youll have family, friends, and advisers involved. A business plan helps get everyoneinvolved in your start-up heading in the same direction.
3.To develop a game plan: At a start-up, execution is everything. That meansyou have to set priorities, establish goals, and measure performance. You alsoneed to identify the key questions to answer, like "What features do customersreally want?," "Will customers buy our product and how much will they pay?,"and "How can we attract customers in a way thats cost effective and scalable?"These are all things youll address during the business planning process.4.To raise capital. If you raise or borrow money—even from friends andfamily—youll need to communicate your vision in a clear, compelling way. Agood business plan will help you do just that. An October 2007 study by BabsonCollege found that start-ups with a business plan raised twice as much capital asthose without a business plan within the first 12 months.