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Business Plan

DISCLAIMER
These notes are for the sole purpose of understanding the concepts of management and are to be used for class room purposes only. The logos of manufactures used are owned by their respective owners and unauthorized use of them may lead to legal persecution. This presentation also may contain copyrighted material & images which on no account should be reproduced / reprinted in any form without permission from the original author.

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Introduction
Focus your thinking Establish realistic strategy Financing and other support Reaction by others

Four Questions
What service or product does your business provide and what needs does it fill? Who are the potential customers for your product or service and why will they purchase it from you? How will you reach your potential customers? Where will you get the financial resources to start your business?
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Definition
Document that can convince the reader that the business can produce enough revenue to make a satisfactory profit and therefore attractive as an investment opportunity

Many reasons to build one

BP should sell the writer/reader on the business:
Writer: so that you can go out and do it, Reader: to invest in it

Confidence of knowing the issues Improve chances of success

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Many Purposes in real life

Bank Financing Strategic alliances Large contracts Key employees Mergers and acquisitions Mgt team motivation New product launch

Principles of BP
No right way: plans can differ Be creative but set a limit Concise and focused Captures energy and personality of business leader Include negatives and issues Spend some time on it
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Sections of Business Plan

Cover Page: contact name and info Table of contents Executive summary Company description The market Competitive analysis Marketing & Sales plan Operation plan Management Structure Future developments Financials
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1. Executive Summary
The single most important part of your business plan Need to explain business concept clearly & concisely in a way that leads the reader to ask for more This is the first impression the reader will get about your company/project

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1. The Executive Summary

Divide into paragraphs that mirror the sections of your marketing plan Keep it brief Use bullets Include a small chart or graph if it helps clarify a point Use space to break-up text blocks

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2. The company: past, present and future

Basic factual details about your company The Executive summary creates a compelling case for your business's success, this section fills in the specifics Provides information about company ownership, location, type of company, milestones, products, industry status, funding.

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3. Target market description

Identify types of people / business most likely to be your customer. Explain their needs Demography of target market Motivating factors for purchase decisions Market Size Market trends

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4. The Competition
Identify competition types direct / indirect Identify your specific competitors Determine your competitors market share Define competitive positions Highlight your competitive edge Evaluate barriers to entry and potential future competitors
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5. Marketing & Sales Plan

Summarize your marketing message Describe your marketing vehicle Additional marketing & sales strategies Sales team description

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6. Operations Plan
Location & facilities Production & quality control Inventory control Supply & distribution Order fulfillment and customer service Equipment & technology Financial control systems
Determine your key operations elements Highlight your operational advantage Address current / potential operational challenges
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7. Management Structure
Highlight key team members Predict future management needs Describe your staffing structure Identify Board Members, Advisors and Consultants

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8. Future Development
Define long term goals Establish future milestones Assess the risks Explore exit options

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9. Financials
Income Statement Cash-flow projections Balance Sheet Sources & use of funds Additional supporting financial statements

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Marketing Plan

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1. Executive summary 2. Environmental analysis

1. Marketing environment 2. Target market 3. Marketing objectives & performance

3. 4. 5. 6. 7. 8. 9.

SWOT / 5F / PEST analysis Marketing objectives Marketing strategies Marketing mix Marketing implementation Financials Evaluation and control / ROI
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Format & Layout

Choose a clear font:
Serif fonts for body Garamond, Palatino, Times New Roman Sans Serif fonts for headings Arial, Franklin Gothic, Verdana

Use no more than two fonts

Be restrained in use of italics, Bold, underline Size 10 12 is best for body text & 12 14 for headings
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Graphs & Charts

Sales of 60" Plasma TV
120 100 80 60 40 20 0 Jan Feb Mar Apr May Jun

Bar charts are useful for showing trends

Market Share of Plasm a TV by brand

Others Philips

Panasonic

Pie charts are effective for depicting market composition, etc.

LG

Samsung Sony

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Binding
If you use business folders, chose a business color like black, blue or grey Have a clear cover sheet with the title page on top

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Cover sheet
Company name Company logo Name address, phone number, e-mail Date Disclaimer Use a cover letter when sending out a business plan
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Sites with sample plans

www.businessplans.org/businessplans.html www.bplans.com/sp/businessplans.cfm www.businessplanarchive.org/

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