Making a business plan 1
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The document outlines how to create an effective business plan by discussing its key sections and components. A business plan is used to obtain funding, recruit employees, and clarify the business strategy. It should include an executive summary, company information, management team, industry and market analysis, operations plan, marketing strategy, financial projections, risk assessment, and appendices with supporting documents and data. The business plan helps communicate the business concept and assess its viability.
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This document outlines how to create an effective business plan in multiple sections. It discusses the objectives of a business plan, its various uses for funding and recruitment. It also describes the different types of business plans and provides steps for writing one. Key sections are identified like the executive summary, company overview, management team, industry and market analysis, operations, marketing plan, financial plan, risks, and appendices. Data requirements and components of each section are also defined to fully capture the business for readers.
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This document provides guidance on developing a business plan, including defining what a business plan is, its key components, and how to present it to potential investors. It explains that a business plan is a written document that describes a new business, including its goals, operations, market analysis, and financial projections. The document outlines the typical sections of a business plan, such as the executive summary, company description, marketing plan, and financial projections. It also provides tips for presenting the business plan, recommending a 12-slide PowerPoint presentation that covers the problem, solution, opportunity, competition, management team, and financing request. The intended learning outcomes are to enable students to develop and outline an effective business plan and presentation for potential investors.
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This document provides guidance on creating an effective business plan in 3 parts or less. It begins by outlining the key benefits of a written plan such as thorough planning, risk assessment, and team alignment. It then lists essential components to include like an executive summary, company description, products/services, markets, and financial projections. Finally, it provides tips for each section with an emphasis on clearly communicating your solution, advantages, business model, management team, and financial forecasts to convince investors.
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The document discusses the importance of developing a business plan. A business plan summarizes a business venture's operational details, financial projections, marketing strategy, and management team. It allows entrepreneurs to realistically test the feasibility of their business idea. The business plan format typically includes sections covering the company overview, products/services, industry analysis, marketing plan, financial projections, management team, and appendices. Developing a thorough business plan increases the chances of a startup's success and is often necessary to obtain financing from lenders or investors.
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Making a business plan 1
- 1. MAKING A BUSINESS PLAN
- 2. Objectives • To understand how a business plan is divided into sections • To list the uses of a business plan • To lay out the steps involved in writing a business plan • To list out data required in drawing up a business plan • To discuss about the various types of business plan • To understand the significance of an executive summary • To understand the structure and composition of various sections of a business plan • To list the various appendices and exhibits needed in a business plan
- 3. Uses of a Business Plan • Equity funding • Bank finance • Alliances • Recruitment • Clarify the business • Others
- 4. Kinds of Business Plans • Summary Plan • Executive summary • Full Business Plan • Operational Business Plan • The oral presentation
- 5. Steps in Writing a Business Plan • Define purpose • Collect Information • Put it down • The rough draft. • Financial analysis • Finishing • Review
- 6. Data Required • Company details – Documents relating to formation – Shareholding details – Permits and registrations • Management – Organization chart – Details of key employees – Consultants and advisors – Compensation and other employee agreements • Industry and Competitors – Market statistics from secondary sources – Reports on trends, etc – Competitor data – Customer surveys
- 7. Data Required • Operations – Product specifications – Contracts and purchase orders for raw materials – Competitive advantages – Details of Intellectual Property (Patent, license, and trademarks) – Regulatory approvals – Industry standards as per regulations – Plant layout and operations plan – Research and development plans • Marketing and Sales – Marketing plan – Advance orders, if any – Marketing materials • Financial Information – Data on fixed and variable costs to be incurred – Financial forecasts
- 8. Key Sections of a Business Plan • Executive summary • The company • The management team • The industry and the market • Operations – Starting up • The marketing plan • Financial plan • Risks and contingencies • Appendices
- 9. Executive Summary The executive summary is probably the most important section of the business plan. It is basically the whole business plan condensed into a few pages The main objective of the executive summary is to entice the reader to go through the entire plan.
- 10. The Company • History • Current Status • Future
- 11. The Management Team • Technical and professional qualifications • Quality of work experience • Experience in the relevant sector • Reputation in the business community • Evidence of moral integrity • Financial capacity • Networking with other vital people in the industry
- 12. The Industry and the market • An industry is a collection of sellers • A market is a collection of buyers – Concentrate on the relevant segments • Competition
- 13. Operations • Gantt chart outline setup • Technology • Raw material strategy • Production planning • Quality • HR policy
- 14. Marketing • Target Segments • Branding • Product • Packaging • Pricing • Distribution • Promotion
- 15. Finance • Funds sought • Projected financial statements • Costing details • Break even and payback analysis
- 16. Risks and Contingencies Identify major threats and risks Outline strategies for countering them
- 17. Appendices • Copy of documents pertaining to incorporation or formalisation of partnership. • CV’s of the entrepreneur/s and of key employees • Copies of various permits or permissions granted. • Copies of papers pertaining to sale or lease of land for the business • Copies of documentation of proprietary intellectual property • Graphical representation of schedule including milestones and dates • Photographs of location • Factory or plant layout • Graphical representation of production process
- 18. Appendices • Findings of market survey conducted • Photograph of product or prototype • Storyboards or mock-ups of advertisements • Projected balance sheets • Projected profit and loss accounts • Projected cash flow statements • Sensitivity analysis of P&L a/c • Break even analysis • Financial ratios
- 19. OIO ___