The Business Plan The student will . . . Discuss elements needed in a formal written business plan
What is a business plan? • A document that describes a new business. • It explains to lenders and investors why the new business deserves financial support.
Why make a business plan? • To obtain financing • To serve as a living guide to the business • To provide a start-up blueprint
The Parts of the Business Plan • Executive Summary • Product/Service Plan • Management Team Plan • Industry/Market Analysis • Operational Plan • Organizational Plan • Marketing Plan • Financial Plan • Growth Plan
Executive Summary • A brief recounting of the key points in business plan • Reader uses it to decide if concept interests them, then will read on • Should be no longer than two pages • Should include the most important information from each section of the plan • Persuade reader business will succeed.
Product/Service Plan • Present product or service offered • Nature of business should be clear • Note unique features of product or service and possible spin-offs (additional products) when business is established
Management Team Plan • Present your qualifications • Present qualification of any partners you’ll have • Analyze the expertise you are missing and how you will solve that problem • Describe the advisory board that will help you get started
Industry/Market Analysis • Presents your research into the industry and market • Analyze your customers, competition, and industry • Include information about the prospective location’s geographic, economic, and demographic data
Operational Plan • All the processes that take place in the business so that the product or service is produced and delivered to the customer. • If manufacturing, discuss status of product development • How much time and money to get product ready for the market • Explain distribution plan
Organization Plan • Looks at the people aspect of the business • Discusses management philosophy, legal form of the company, key management personnel, and key employment policies
Marketing Plan • How a company makes its customers aware of its products or services • Includes such features as the market niche, pricing policy, company image, marketing tactics used to reach customer, a media plan, and a marketing budget
Financial Plan • Presents the forecasts for the future of the business • Explains the assumptions made when calculating forecast figures • Information in the form of financial statements • Shows that the new business will be financially healthy
Growth Plan • Looks at how the business will expand in the future • Explains potential for plan to grow over its life