Business Plan
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business_plan.pptxWhat is a Business Plan
A business plan is a written document that details the various aspects of
your business - what it does, your vision, goals, strategies, market
positioning and financial projections.
Why do you need a Business Plan
A business plan acts as a blueprint for your business. It helps you:
take an objective look at your business
think through the different aspects as you plan and execute
clarify and solidify your goals and direction
track and measure your success
The business plan serves as a key component of the assessment process. A strong plan will give investors the confidence that you know what you are doing and have clear short, medium and long-term goals and plans. This gives them comfort that the business will be well-run, sustainable and increases the chances of them getting a healthy return on their investment.
Who is a Business Plan for?
Lenders like banks and financial houses
Investors like business angels, venture capitalists, friends etc.
Government agencies giving out assistance like loans and grants
Potential business partners
Writing a business plan is not a one-time effort. It is a document that will go through many changes as your business grows and evolves and will be a useful reference point in your entrepreneurship journey
Components of the Business Plan
Executive Summary
Business Description
Products / Services
The Market
Marketing Strategies / Sales
Development
Management
Operations
Financials
Funding
Appendices
MUST HAVE(S)
Can have, can don’t have
Executive Summary
A concise summary/overview of your plan and business, written after you have completed your plan.
This is the most critical component, especially where investors and lenders are concerned, as many judge your business based purely on this section alone.
Executive Summary
Business Description
Products & Services
The Market
Competition
Operations
Management Team
Risk / Opportunity
Financial Summary
Capital Requirements
Business Description
Industry Overview
Company Description
History & Current Status
Goals & Objectives
Critical Success Factors
Company Ownership
Exit Strategy
The business description usually begins with a short description of the industry. When describing the industry, discuss the present outlook as well as future possibilities. You should also provide information on all the various markets within the industry, including any new products or developments that will benefit or adversely affect your business.
Products / Services
Product / Service Description
Unique Features
Research & Development
Production
New & Follow-on Products / Services
The Market
Industry Analysis
Market Analysis
Competitor Analysis
Market strategies are the result of a meticulous market analysis. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share of sales.
The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.
Marketing Strategies / Sales
Market Segmentation Strategy
Targeting Strategy
Positioning Strategy
Product / Service Strategy
Pricing Strategy
Distribution Channels
Promoting & Advertising Strategy
Sales Strategy
Sales Forecasts
Development
Development Strategy
Development Timeline
Development Expenses
Management
Company Organization
Management Team
Management Structure & Style
Ownership
Board
The operations and management plan is designed to describe just how the business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the various responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business.
Operations
Operations Strategy
Scope of Operations
Ongoing Operations
Location
Personnel
Production
Operations Expenses
Legal Environment
Inventory
Suppliers
Credit Policies
Financials
Start-Up Funds
Financial History & Analysis
Current Financial Position
Operating Forecast
Break-Even Analysis
Balance Sheet
Income Statement
Cash Flow
Financial data is always at the back of the business plan, but that doesn't mean it's any less important than up-front material such as the business concept and the management team.
