Business Capstone Project

Potential Business Planning Template

Spring 2014

Please note that this is a guide, not a prescription. These business planning elements do not
have to be all inclusive, as long as the elements relevant to your project are included in a
logical order. One specific template is included at the end of this document for your
information.
Remember that your overall business plan report should not exceed 3,500-5,000 words. A
business plan is any plan that caters to a businesss needs of forecasting, allocating resources,
focusing on key points, and preparation for problems and opportunities, expected or
otherwise. Business plans are not only aimed at starting a new business or applying for
business loans/venture capital. They are also vital for the proper functioning and adaptability
of running businesses. Hence, businesses need plans to optimize growth and development
according to priorities. (Berry, 2004)
As an overall concept, remember that the even the not-for-profit/NGO sector may be eligible
to reap the benefits of public/private sector reforms, including outsourcing, Public Private
Partnerships, Corporatization and Privatization.
Remember that a business plan should answer the questions:
1. Where are we now?
2. Where are we going?
3. How will we get there?
4. How will we know that we are on track?
One possible business planning template would include the following general sections:
1. Table of Contents
2. Introduction
A brief description of the business problem you were addressing, your suggestions and
recommendations for your client, with compelling reasons why you have chosen this
particular approach.
3. Executive Summary
1. Overview of your idea how does your idea fit into the context of the organization?
2. Summarize the opportunity describe and quantify your idea in terms of its
advantages to the organization and its stakeholders.
3. Brief summary of the market how large is it? At what stage, e.g. early versus growth
versus mature?
4. Differentiation what makes the idea special is it disruptive or sequential in nature
i.e. better, faster, cheaper, and why? Is your idea a temporary or permanent

improvement? Is it a temporary window, or a structural change? Are there barriers

to entry which might support your financial projections?
5. Description of your idea in detail
6. The Market market size, growth rate and relative stage of development
7. Tactical Plan describe the planned users of your products or services
8. Human capital imagine you are a small consulting group, with your own real
backgrounds. What skills and abilities do you bring to this organizational problem?
Who will be needed to implement it? What change management issues might be
relevant or appropriate here?
9. Nature and use of proceeds of funds if appropriate, include an analysis of the type of
funding you might need (e.g. equity capital, loans) to support your Idea. If you are not
seeking funding, explain why. Remember that one of the most common causes of new
business failure is under-capitalization. Consider carefully, even from the very
beginning of your project time together, how much money your client will need to
operate your idea for the first year and for subsequent years. Investors (public or
private) will want to know how the funds will be used.
10. Financial assumptions
11. Key financials this should include an income statement, cash flow analysis and
balance sheet.
12. Appendices/Reference List further details and sources you used.
4. The context of the client organization and how your Idea fits with current or future
strategy
Acknowledge the current situation of the organization e.g. what was the genesis of the
organization? How has it been funded up until this point in time? What is the legal structure
of the company and how might this idea impact it? Are there any changes in corporate
governance required? Regulatory issues? Should an advisory board be established?
Who are current organizational investors or stakeholders and what is their stake? What are
the organizations current and future corporate strategic plans? Who are the current key
management figures in the organization? What are their key competencies? What are their
goals for the organization?
Describe your idea logically for the client.
5. The Idea in detail
Describe your Idea in detail. What are the associated products, services, technologies? What
are the advantages of your idea compared to the competition? You may need to think of the
competition in a creative way. What is the timetable for introducing your idea? What
resources are required? Are there other business partners involved? How will their needs be
met? Has your idea been tested\evaluated? What were the results? Are there plans for future
or next generation iterations of your idea? Are these new products included in your revenue
and cost projections?
6. The Market
What is the market size? Its growth rate or relative stage of development? Describe the
overall market as well as the market segment you are targeting. As an example, the overall

market might be geared toward corporate training, but, conversely, you might focus on elearning. Discuss any significant changes in the market, short term and long terms trends, the
impact of technology, government regulation and economic shifts. Reference any sources,
e.g. the Karpin Report of 1995, or academic articles or websites.
7. Tactical Plan
Who are the planned users of your products or services? Where are they? How many of them
are there? Are there geographic concentrations? Are there international opportunities? How
will you reach your target market? How will customers become aware of your organizations
brand, image and other products or services?
Additionally, you must provide an overview of:
Sales/distribution strategy
Pricing strategy
Product positioning
Brand image awareness
Collateral materials
Product/market exposure strategy
Advertising and promotional efforts
Public relations
Media advertising
Direct marketing
Trade shows
Website/Social Networking strategies
Strategic alliances/partnerships consider their risk profile, their exit strategies, other
relevant issues.
Marketing budget
Be prepared to defend your marketing strategy to your client.
8. Human capital
This is at two levels of analysis: the level of your own group and the level of the
organization.
For your group-level analysis, include a summary of your group member biographies.
Imagine you are a small consulting group, with your own real backgrounds. What skills and
abilities do you bring to this organizational problem? Be creative if you havent worked in
this line of business before, what casual work/volunteer work/studies have you done which
might give you insights into this business?
At the organizational level of analysis, consider the effects of your idea on organizational
design, levels of staffing (casual/contracted/permanent), industrial relations issues, training
expenses, performance management systems.
Consider, if at all possible, the change management issues which may need to be addressed.
For instance, will some stakeholders need to be convinced of this idea? How might they be
convinced?

9. Competitive Analysis
What advantages do you have over the competition? Why will potential customers use your
idea? Where are your competitors vulnerable? Who is the market leader and why are they in
that position? Are any competitors a potential partner?

Describe any recent merger or acquisition activity among competitors.

A succinct analysis of each competitors business.
Strengths and weaknesses of key competitors.
Your analysis of your positioning relative to competitors, eg on an x and y axis
describing cost versus technology.

10. Financial Assumptions

Describe your logic in arriving at your financial details. Be clear about your assumptions
including, interest rates, currency fluctuations, important share price movements, taxation
regimes, professionals fees etc. etc.
Be prepared to defend your financial assumptions to your client.
11. Financial Statements
Income Statement
Cash flow analysis
Balance sheet
Some business planning specialists suggest that cash flow is the single most important
numerical analysis in a plan. Use GAAP. State your assumptions. Consider providing a
month by month analysis for year 1, then yearly for the next 3-5 years.
12. Appendices/Reference List
Include information which is concise, timely and relevant to your idea. Include the
information sources you accessed, including websites, reports, books, articles and magazines
as well as company documentation.
Check List
Check whether you have answered all your clients questions. Put yourself in the position of
the client or potential investor. Would you invest in this Idea? Why\why not?
Additional Capstone Aids
Also, refer to these references for further ideas on business plan templates:
1.
2.
3.
4.

www.bplans.com/dp/
www.abc.net.au/catapault/basics
www.businessplans.org/2mba
www.projectmanagement.tas.gov.au