The document provides guidance on how to write an effective business plan. It explains that a business plan outlines business goals and plans for achieving them, while also addressing expectations of lenders, investors, and other stakeholders. The document recommends that a business plan includes sections on executive summary, company overview, products/services, industry analysis, marketing plan, management team, and financial projections. It provides detailed content suggestions for each section to comprehensively capture the strategic, financial, and operational aspects of a business.

1. HOW TO WRITE A
BANKABLE BUSINESS
PLAN
Paul Alaje

2. Definitions and Relationships
 What is a Business Plan?
 A business plan is a formal statement of business goals, reasons
they are attainable, and plans for reaching them. It may also contain
background information about the organization or team attempting to
reach those goals.
 What is A Business Proposal?
 A business proposal is a written document sent to a prospective
client in order to obtain a specific job. Proposals may be solicited or
unsolicited. A client may simply request a proposal on a project in the
course of a sales call by saying: "You know, that sounds interesting.
 What is A Business Model?
 a plan for the successful operation of a business, identifying sources
of revenue, the intended customer base, products, and details of
financing.

3. WHY A BUSINESS PLAN?
 Strategic Guide
 Lenders
 Investors

4. STRATEGIC GUIDE
 Where Do You Want To Go?
 How Are You Going to Get
There?
 What Market Niches?
 How Much is it Going to
Cost?
 Greatest Profit Opportunity?

5. LENDER EXPECTATIONS
 Good Business Track Record
 Ability to Repay
 Staying Power
 Collateral

6. INVESTOR EXPECTATIONS
 Competitive Advantage
 Huge Market
 Strong Management Team
 Strong Marketing and Sales Plan
 Some Skin in the Game
 Exit Strategy

7. ENTREPRENEURS START
BUSINESSES:
 To Capitalize on an
Invention
 To Pursue a Passion
 To Be Their Own Boss
 To Get Rich
 To Impact Others
---All Need an Exit Strategy

8. EXIT STRATEGIES
 Selling the Business
 Transferring the Business to a Family
Member
 Taking the Company Public
 Being Acquired by a Larger Company

9. FUNDING SOURCES:
 Savings
 Friends and Family and fools
 Financial Institutions / Banks
 Angel Investors
 Venture Capital

10. BUSINESS PLAN CONTENT
 Executive Summary
 Company Description
 Product/Services Description
 Industry Overview
 Market Analysis
 Competitors

11. BUSINESS PLAN CONTENT
 Customers
 Marketing and Sales Plans
 Development
 Operations
 Management

12. BUSINESS PLAN CONTENT
 Personnel
 Financial Summary
 Financials
 Offering
 Appendices

13. EXECUTIVE SUMMARY
 A mini-business plan in four or ten pages
 Highlights the most important points of
your business plan
 It is NOT an introduction to the plan
 It must grab your reader, and entice
him/her to read further

14. EXECUTIVE SUMMARY
 Identify the company, its background,
structure and location
 Describe what the company does, and the
market it serves
 Describe the market potential for the
company’s products and services, market
trends, etc.

15. EXECUTIVE SUMMARY
 Outline the backgrounds and experience
of the top management team
 Describe the funding required, the
purposes for which it will be used, the
collateral available (if for a lender), and
the expected outcomes

16. COMPANY OVERVIEW
 Brief Company Introduction
 Mission statement
 Location, size, history
 Market and products
 Overview of company capabilities
 Objectives

17. PRODUCTS/SERVICES
 Products / Services
 What does it do?
 Uniqueness
 Competitive Advantage
 Technology
 Brief description
 Applications
 Commercialization Status
 Brief overview

18. INDUSTRY OVERVIEW
 Set The Stage
 Industry Definition and
Description
 Major players within the industry
 Factors driving dynamics
 New products and developments
 Legislation and Policies Driving
the Industry
 Historical and Future Trends

19. MARKET ANALYSIS
 Market Definition
 Primary Market
 Secondary Markets
 Market Size and Trends
 Current total revenues
 Predicted annual growth rate

20. COMPETITORS
 Direct Competitors
 Who are they?
 Size and product breadth
 Revenues and profitability
 Strengths and weaknesses
 Market shares
 Indirect Competitors

21. CUSTOMERS
 Customer Characteristics
 Who are they?
 Why do they buy?
 Need satisfied by the product/service
 How is the need currently filled?
 What are the alternatives?
 Who makes the decision to buy?
 How frequently do they purchase?

22. MARKETING AND SALES PLANS
 Statement of Opportunity
 Marketing and Sales Objectives
 Existing Customers
 Potential Customers
 Prospects targeted
 How prospects will be targeted and qualified

23. MARKETING STRATEGIES
 Product/Service Strategy
 Pricing Strategy
 Distribution Strategy
 Advertising and Promotion
Strategy
 Sales Strategy
 Marketing and Sales Forecasts

24. MARKETING AND SALES PLANS
 Marketing Programs
Direct Mail
Trade Shows
Advertising
Internet
Publicity/Public Relations
Marketing Budget
 Pricing
Basis for targeted price point
Margins and profitability by volume levels

25. MARKETING AND SALES PLANS
 Sales Plan
 Sales force structure – (direct or reps)
 Sales expectations/quotas
 Margins given to intermediaries
 Service and warranties
 Sales Budget
 Organizational chart indicating planned growth

26. DEVELOPMENT
 R & D Plan
 Objectives
 Milestones and current status
 Difficulties and risks
 Staffing
 R & D Budget and assumptions

27. OPERATIONS
 Manufacturing/Production Plan
 Objectives
 Facilities
 Staffing
 Subcontractors
 Quality Control
 Budget / Operating Expenses

28. MANAGEMENT
 Company Organization
 Management Team
 Administrative Expenses

29. MANAGEMENT TEAM
 President
 VP Finance
 VP Sales
 VP Marketing
 VP Manufacturing
 Board of Advisors

30. PERSONNEL
 Human Resource Plan
 Staffing Objectives
 Organizational Structure
 3-5 year growth plan
 Budget

31. SUMMARY OF FINANCIALS
 Financial Objectives
 Time to Cash Flow Positive
 Time to profitability
 Financial Assumptions
 Capital Requirements
 Exit Scenario

32. FINANCIALS
 Pro-forma Cash Flow Projections
 Pro-forma Profit & Loss Statements
 Pro-forma Balance Sheet

33. OFFERING
 Investment Requirements
 Pro-forma Valuation of Business
 Offer

34. APPENDICES
 Resumes of Key Management
 Patent Information
 Customer List
 Testimonials
 Supplemental Financial Spreadsheets
 References

35. INVESTMENT CLIMATE

36. QUESTIONS?
?