| Who needs a Business Plan? | | | | recent changeso Market segmentso Target market |
| Every business needs one. It's not just for start-ups | | | | and customerso Customer characteristicso Customer |
| or new product launches or business expansion | | | | needso Buying and selling process |
| initiatives. | | | | 5. Competition (Demonstrate an awareness of |
| Why? And what should be in one? | | | | competitors and your ability to compete |
| Documenting a Business Plan is an extremely useful | | | | successfully.)o Industry overview, recent changeso |
| process to focus management and owners on their | | | | Nature of competition, inside and outside the |
| business concept, strategies, and operating plans. It | | | | industryo Primary competitorso Competitive products |
| forces consensus and decision making that might | | | | services, relative pricing, advantages, disadvantageso |
| otherwise be neglected. It requires issues to be | | | | Opportunities, protection by patents, copyrights, |
| resolved and the decisions to be reflected in financial | | | | barriers to entryo Threats and risks, ability of |
| projections. | | | | competitors to respond, imitate or copy. |
| A well-documented business plan will help you | | | | 6. Strategic Plan (Describe your starting point, |
| communicate the most important elements of your | | | | direction, and plan to get there.)o Company history |
| strategy and plans to the people who need to know | | | | & background - experience, resourceso Key |
| them. Including you. | | | | competitive strengths & current weaknesseso |
| Already in business for years and never needed a | | | | Business plan and strategy to leverage strengths, |
| business plan? It's still a good idea for all the same | | | | reduce weaknesseso Action plan for implementing |
| reasons. And now is a good time. | | | | strategy |
| Ready to exit your business? Even better. A solid | | | | 7. Management team (Usually the most important |
| business plan will be the most important document in | | | | factor in determining your success and in attracting |
| supporting the valuation of your business. | | | | staff and financing. Emphasize current strengths and |
| The greatest value of a business plan, however, is | | | | plan to fill in the gaps.)o Key personnel, experience |
| likely to be in the process - involving your | | | | & credentialso Staffing plano Organizational |
| management team in a thorough examination of your | | | | structure |
| business - its purpose, its strategies and its plans to | | | | 8. Product & Service Offering (Consider the |
| ensure success. When completed, all the key players | | | | reader's familiarity with the industry, avoid technical |
| will be more knowledgeable of the issues, the | | | | jargon, relate to the market and competition.)o |
| opportunities, the risks, and the alternative paths | | | | Product/service descriptiono Positioning of products |
| considered, before committing to the final plan. | | | | serviceso Competitive evaluation of products |
| Following is a suggested guideline of the layout and | | | | serviceso Future products/services |
| content for developing an effective Business Plan. It | | | | 9. Marketing and sales plan (Another key to success, |
| is a consolidation of best practices, based on our | | | | too often neglected by owner/managers with strong |
| consulting and management experience with many | | | | product, technical, or operations backgrounds. Prove |
| different clients under a variety of circumstances. | | | | you have a plan that will be affordable and |
| COVER PAGE: | | | | effective.)o Marketing strategy, positioning, |
| Includes title, date, purpose, prepared by whom, | | | | presentationo Sales tacticso Advertising, Promotions |
| confidentiality statement, issued to whom, and a | | | | incentiveso Publicity, public relations, press releaseso |
| document control number. | | | | Trade shows, industry eventso Web marketing |
| PURPOSE: | | | | 10. Operations plan (Describe the important issues |
| Objectives of the Business Plan - attract financing, | | | | and factors that will affect customer service |
| key executives, customers, or strategic partners? | | | | perceptions and the costs related to capital |
| Document strategy and action plan for all | | | | investment and operations.)o Processes for product |
| participants? Set financial objectives and timetable? | | | | service deliveryo Customer service and supporto |
| CONTENTS: | | | | Facilities and staff required |
| 1. Executive Summary (Max. 2 pages, written last as | | | | 11. Risk analysis (What can go wrong, what will you |
| a stand-alone document, may be offered for review | | | | do about it?)o Market factors - economic cycle, |
| prior to full disclosure of the business plan, convinces | | | | interest rates, currency, government regulations, |
| reader to go further, or not.)o Business Concept, Plan | | | | trade restrictions.o Business risks - key customer |
| and Objectiveso Current status relative to the | | | | & supplier dependence, labour availability, staff |
| market opportunityo Key success factors, risks, | | | | turnover, new competitors, new technology, changing |
| expected resultso Financial situation and needso | | | | demand. |
| Reference to the complete Business Plan (sections | | | | 12. Financial plan (Convert all the preceding words into |
| below) for more detail | | | | numbers, next year by month, then three-to-five |
| 2. Concept and Business Opportunity (Describe the | | | | years annually.)o Summary paragraph, Assumptions |
| need being addressed, how this approach is different, | | | | and Comments, followed by analysiso Starting |
| and why it is likely to succeed.)o Market need and | | | | Balance Sheeto Profit and Loss Projectiono Cash |
| current solutions availableo Business concept and | | | | Flow Projectiono Balance Sheet Projectiono Ratio's |
| product/service differentiationo Initial market | | | | and Analysis, value of equityo Financial needso |
| feedback | | | | Sources of funds |
| 3. Mission statement (Generate missionaries!, why | | | | APPENDICES: |
| others should join the cause - have fun, make | | | | Add some personalisation and realism with biographies |
| money, make a difference?)o Clear, attractive | | | | and photos of key executives, product photos, |
| objectives - who and what do you want to be?o | | | | marketing literature, sample packaging, facility plans, |
| Statement of values and prioritieso Milestones and | | | | press releases, customer testimonials, relevant |
| timetable | | | | research documents, etc. |
| 4. Market Analysis (Provide relevant, pertinent | | | | Following these guidelines will ensure that you have |
| information to demonstrate your knowledge and | | | | considered all the issues and can defend your |
| competence in this industry.)o The overall market, | | | | strategies and action plans against all inquisitors. |