Você está na página 1de 7



Outline of our course Business Plan: Exploring Each Section of the Plan 1. Cover Page. The cover page should include the name of the company, its address, its phone number, the date, and contact information for the lead entrepreneur. 2. Table of Contents. Lists the section titles and page numbers. Each section begins a new page 3. Executive Summary. The executive summary is a short overview of the entire business plan; it provides a busy reader with everything that needs to be known about the new ventures distinctive nature. a. Although the executive summary appears at the beginning of the business plan, it should be created after the plan is finished. Only then can an accurate overview of the plan be written. b. An executive summary shouldnt exceed three double-spaced pages. The cleanest format for an executive summary is to provide an overview of the business plan on a section-by-section basis. 4. Business Concept. This section begins with a general description of the company. Although at first glance this section may seem less critical than the others, it is extremely important. It demonstrates to your reader that you know how to translate an idea into a business. a. The business concept should start with a brief introduction, which provides an overview of the company and reminds the reader of the reason it is starting. b. The section to include in this portion of the plan include: Company History, Mission Statement, Products and Services, Current Status, Legal Status and Ownership, and Key Partnerships (if any). 5. Product and Service. If youre developing a completely new product or service, you need to include a section in your business plan that focuses on the status of your development efforts. a. The sections to include in this portion of the plan include: Development Status and Tasks, Challenges and Risks, and Intellectual Property. 1

b. Most products follow a logical path of development that includes product conception, prototyping, initial production, and full production. You should describe specifically the point that your product or service is at and provide a timeline that describes the remaining steps. c. A prototype is the first physical depiction of a new product. A virtual prototype is a computer-generated 3-D image of an idea. 6. External Analysis a. Market While the industry analysis focuses on the industry that a firm will participate in, the market analysis breaks the industry into segments and focuses in on the specific segment (or target market) to which the firm will try to appeal. Market segmentation is the process of dividing the market into distinct segments. Markets can be segmented in many ways, such as by geography, demographic variables, psychographic variables, and so forth. b. Target Customer. In a nutshell, defining your target customers means identifying the specific characteristics of the people or businesses who you believe are most likely to buy your product or service. These characteristics are sometimes called a demographic profile. Common characteristics used to classify customers include: age gender income level buying habits occupation or industry marital status family status (children or no children) geographic location ethnic group political affiliations or leanings hobbies and interests religious beliefs

c. Suppliers. Reference your supplier spreadsheet and place in appendix. d. Economy. This section begins the financial analysis of the business. It addresses the basic logic of how profits are earned in the business and how many units of a businesss product or service must be sold for the business to break even and then start earning a profit. 2


Revenue drivers and profit margins. Summarize the major revenue drivers of the business in proportion to where you expect to make your money. Describe the size of the overall gross margins and margins for each of the major revenue drivers of the business. Then determine the weighted average contribution margins. Fixed and variable costs. Provide a detailed summary of fixed and variable costs, for the venture. a. Fixed i. Insurances ii. Rent/lease iii. Phone iv. Internet v. Salary vi. License / permits / etc b. Variable i. Sales tax ii. Hourly labor iii. Utilities based on usage.


I11. Start-up costs. Distinguish the one-time start-up costs of the business. iv. Overall economic model. Put the pieces above together. Indicate how you will make money in terms of the combination of margins, volumes, operating leverage, and revenue source flexibility. How attractive is the combination? v. Breakeven chart and calculations. Compute the number of units the business has to sell to break even prior to earning a profit. vi. Profit durability. Address the issue of how solid or vulnerable the profit stream appears to be. e. Direct Competitors. Organizations that provide the same products/services to the same target customers. f. Indirect Competitors. Organizations that do not provide the same products/services, but satisfies the same need and want to the same target customers.

g. Community. Your organization exists in a community. The community can be identified as immediate surroundings, city, county, state, country, or international. Business professionals may see it as a moral duty to return a benefit back to society. It could be through financial contributions or organizational member commitment to community activities. h. Government. Governments at all levels are able to control entry into an industry through licensing and permit requirements. Examples: taxes, location, building, expanding, liquor, inspections, and specific disciplines such as barbers and beauticians, doctors, hospitals, electricians, etc. 7. Internal Analysis a. Organizational Structure. An organizational chart, which is often included in this section of the business plan, is a graphic representation of how authority and responsibility are distributed within the company. b. Management. This is a critical section of a business plan. Many investors and others who read business plans look first at the executive summary and then go directly to the management team section to assess the strength of the people starting the firm. i. The sections to include in this portion of the plan include: Management Team, Board of Directors, and Board of Advisors. A board of directors is a panel of individuals elected by a corporations shareholders to oversee the management of the firm, as explained in more detail in Chapter 9. A board of advisors is a panel of experts asked by a firms management to provide counsel and advice on an ongoing basis. (Also covered in more detail in Chapter 9.)



c. Skill Sets. For management and not management, list the still sets required to create and maintain the business. d. Culture. Set of key values, beliefs, understandings, and norms shared by members of an organization. Culture needs to be designed and maintained to enhance goal achievement.

e. Niche. What makes you different then your competitors? i. Price ii. Quality iii. Customer Service iv. Support v. Ambiance 8. . Marketing & Sales. The marketing plan focuses on how the business will market and sell its product or service. It deals with the nuts and bolts of marketing in terms of price, promotion, distribution, and sales. a. The sections to include in this portion of the plan include Overall Marketing Strategy and Product, Price, Promotions, and Distribution. b. A firms marketing strategy refers to its overall approach for marketing its products and services. A firms overall approach typically boils down to how it positions itself in its market and how it differentiates itself from its competitors. c. The next section should deal with your companys approach to product, price, promotion, and distribution. d. The final section should describe the companys sales process or cycle and specific sales tactics it will employ. e. A simple and accepted formula for a retail price is to take your price of the good and multiply it X 2.

9. Financial Requirements. Identify the amount needed (loan, funding, grant, etc) and how it will be spent.

10. Financial Projections. This section of a business plan presents a firms pro forma (or projected) financial projections. They take the plans youve developed and express them in financial terms. You should develop the Financial Projections section after you've analyzed the market and set clear objectives. That's when you can allocate resources efficiently.

Historical Financial Data If you own an established business, you will be requested to supply historical data related to your company's performance. Most creditors request data for the last three to five years, depending on the length of time you have been in business. The historical financial data to include are your company's income statements, balance sheets, and cash flow statements for each year you have been in business (usually for up to three to five years). Often, creditors are also interested in any collateral that you may have that could be used to ensure your loan, regardless of the stage of your business.

Prospective Financial Data All businesses, whether startup or growing, will be required to supply prospective financial data. Most of the time, creditors will want to see what you expect your company to be able to do within the next five years. Each year's documents should include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, you should supply monthly or quarterly projections. After that, you can stretch it to quarterly and/or yearly projections for years two through five. Make sure that your projections match your funding requests; creditors will be on the lookout for inconsistencies. It's much better if you catch mistakes before they do. If you have made assumptions in your projections, be sure to summarize what you have assumed. This way, the reader will not be left guessing. Finally, include a short analysis of your financial information. Include a ratio and trend analysis for all of your financial statements (both historical and prospective). Since pictures speak louder than words, you may want to add graphs of your trend analysis (especially if they are positive).

11. Risk Management. Every organizational has risks. We can only succeed by identifying our business risks and working to eliminate or reduce them. Risks do not magically go away because you choose to ignore them, Risks come in various ways: a. Start-up costs b. Short term and long term financial obligations c. Competition d. Elements in the external environment e. Elements in the internal environment 12. References. A lot of research goes into the business plan. It is important to keep track of where you obtained the information. Information sources should be cited in the document and referenced in the References section.

13. Appendix. Any material that does not easily fit into the body of a business plan should appear in an appendix. The Appendix should be provided to readers on an as-needed basis. In other words, it should not be included with the main body of your business plan. Your plan is your communication tool; as such, it will be seen by a lot of people. Some of the information in the business section you will not want everyone to see, but specific individuals (such as creditors) may want access to this information to make lending decisions. Therefore, it is important to have the appendix within easy reach. The appendix would include:

Credit history (personal & business) Resumes of key managers Product/Service pictures Letters of reference Details of market studies Relevant magazine articles or book references Licenses, permits or patents Legal documents Copies of leases Building permits Contracts List of business consultants, including attorney and accountant