entrepreneur class business plan assignment

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Guidelines for Writing a Business Plan
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Structure of the Business Plan
To make the best impression a business plan should follow a conventional structure, such as the outline for the business plan shown in the chapter.
Although some entrepreneurs want to demonstrate creativity, departing from the basic structure of the conventional business plan is usually a mistake.
Typically, investors are busy people and want a plan where they can easily find critical information.

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Guidelines for Writing a Business Plan
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Structure of the Business Plan (continued)
Software Packages
There are many software packages available that employ an interactive, menu-driven approach to assist in the writing of a business plan.
Some of these programs are very helpful. However, entrepreneurs should avoid a boilerplate plan that looks as though it came from a “canned” source.
Sense of Excitement
Along with facts and figures, a business plan needs to project a sense of anticipation and excitement about the possibilities that surround a new venture.

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Guidelines for Writing a Business Plan
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Content of the Business Plan
The business plan should give clear and concise information on all the important aspects of the proposed venture.
It must be long enough to provide sufficient information yet short enough to maintain reader interest.
For most plans, 25 to 35 pages is sufficient.
Types of Business Plans
There are three types of business plans, which are shown on the next slide.

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Guidelines for Writing a Business Plan
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Types of Business Plans

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Guidelines for Writing a Business Plan
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Recognizing the Elements of the Plan May Change
It’s important to recognize that the plan will usually change while written.
New insights invariably emerge when an entrepreneur or a team of entrepreneurs immerse themselves in writing the plan and start getting feedback from others.

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Section 5: The Economics of the Business
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The Economics of the Business
This section addresses the basic logic of how profits are earned in the business and how many units of a business’s profits must be sold for the business to “break even” and then start earning a profit.
Items to include in this section:
Revenue drivers and profit margins.
Fixed and variable costs.
Operating leverage and its implications.
Start-up costs.
Break-even chart and calculations.

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The Economics of the Business

Key Insights

Two companies in the same industry

may make profits in different ways.

One may be a high-margin, low-volume business, while the other

may be a low-margin, high-volume

business. It’s important to check to

make sure the approach you select

is sound.

Computing a break-even analysis

is an extremely useful exercise for

any proposed or existing business.

Section 5: The Economics of the Business
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Section 6: Marketing Plan
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Marketing Plan
The marketing plan focuses on how the business will market and sell its product or service.
Items to include in this section:
Overall marketing strategy.
Product, price, promotions, and distribution.
Sales process (or cycle).
Sales tactics.

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Marketing Plan

Key Insights

The best way to describe a start-up’s

marketing plan is to start by

articulating its marketing strategy,

positioning, and points of

differentiation, and then talk about

how these overall aspects of the

plan will be supported by price,

promotional mix, and distribution

strategy.

It’s also important to discuss the

company sales process.

Section 6: Marketing Plan
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