The document outlines the key components of a successful business plan, including an executive summary, description of products/services, marketing strategy, management team, and financial projections. A business plan guides entrepreneurs, and is used to attract lenders and investors by demonstrating the viability of the venture and qualifications of the team. It includes operational and financial details, marketing opportunities, and managers' skills.

1. A Business Plan
 A written summary of an entrepreneur’s
proposed business venture, its operational
and financial details, its marketing
opportunities and strategy, and its
managers’ skills and abilities

2. 3 Functions
 Guides an entrepreneur
 Attracts lenders and investors
Reality Test
Competitive Test
Value Test
 Represents/reflects its creator

3. Elements of a Business Plan
 Title Page and Contents
 Executive Summary
 Vision and Mission Statement
 Company History
 Business and Industry Profile
 Business Strategy
 Description of the Firm’s Product or Service
 Marketing Strategy
 Competitor Analysis
 Description of Management Team
 Plan of Operation
 Pro Forma Financial Statements
 The Loan or Investment Proposal

4. What Lenders and Investors Look
for in a Business Plan
 Capital
 Capacity
 Collateral
 Character
 Conditions

5. Executive Summary
 The company’s business model and basis
for competitive edge
 The company’s target markets and the
benefits its product or service will provide
 The qualification of the founders and/or
key employees
 The key financial highlights

6. Business and Industry Profile
 Overview of industry or market segment
 Existing or anticipated profitability of the
industry
 Company’s general business goals
 Company’s immediate objectives

7. Business Strategy
 How to gain competitive edge
 How to achieve the goals and objectives
 Methods to satisfy KSFs of the industry

8. Description of Product or Service
 Overview of how customers will use it
 Any patents, trademarks or copyright
 Honest comparison with competition
 Feature (descriptive fact about a product
or service) vs Benefit (what a customer
gains from the product or service)
 Description of production process,
strategic raw materials, sources, costs.

9. Marketing Strategy
 Defining the target market
Who?
Where?
How many?
Why?
 Proving that a profitable market exists
Showing customer interest
Documenting market claims

10. Marketing Strategy
 Advertising
 Market Size and trend
 Location
 Pricing
 Distribution

11. Competitor Analysis
 Each significant competitor
 Advantage over each

12. Description of Management Team
 Qualifications of those with at least 20%
ownership
 Resumes
 How to avoid primary reasons for business
failures

13. Plan of Operation
 Organizational chart
 Form of ownership

14. Pro Forma Financial Statements
 Monthly for 3 years by quarter
 3 sets: pessimistic, most likely, optimistic
 Statement of assumptions

15. Loan or Investment Proposal
 Purpose of financing
 Amount requested
 Plans for repayment/exit strategy
 Timetable for implementation
 Evaluation of risks