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A business plan is an essential foundation of any businesses venture, and a vital first step to guide profitability and success. By examining strengths, weaknesses, and the competitive landscape, a carefully crafted business plan can mean the difference between success and failure. Learn from our School of Business subject matter expert, Antar Salim, how to create this critical, yet constantly evolving, document that serves as a roadmap to help guide future business strategy and expansion.
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Developing Your EnterpriseHow To Create An Effective Business Plan
Explore the eight major components of an effective business plan
AGENDA
• Executive Summary
• Market Analysis
• Company Description
• Organization and Management
• Marketing and Sales
• Funding Request
• Financial Projections
• Recapitulate the major elements of the plan
• 1 or 2 paragraphs • Provides enough insight in order to
generate an overall idea of the business
EXECUTIVE SUMMARY
• Explores the highlights of the business
– The product and or service
– Differentiation
– Target market
– Financial projections
» NPV and Breakeven
• Industry description• Outlook for the industry (5 years)• Define the target market
– Demographic, psychographic, geographic, and behavioral
• Size and characteristics of the target market
• Projected portion of market share• Pricing and projected profit margins• SWOT
MARKET ANALYSIS
• Company’s Value Proposition – What needs / wants your product and or service sates– How those needs / wants are met– Strategic approach
• Low cost, differentiation, niche– Competitive advantage
• Core competencies and distinct capabilities
COMPANY DESCRIPTION
• Organizational Structure– Functional, departmental,
matrix, etc– Tall vs. flat– Explanation of the structure
• Ownership profile– Based on percentages
• Management bios• Qualifications of the board
members
ORGANIZATION AND MANAGEMENT
• Explore the 4 Ps of marketing– Product, place, promotion, and
pricing
• Marketing strategy– Penetration, product
development, market development, diversification
• Description of the Supply Chain
• Integrated Marketing Communication– How are you going to
communicate to your potential customers
MARKETING AND SALES
• Details of the product and or service– Advantages and disadvantages
• Discuss the Product Life Cycle (PLC)– Where the product falls and
how it will be extended• Intellectual property / patents
• R&D activities
• How does the firm innovate
SERVICE AND OR PRODUCT LINE
• Current funding request• Future funding request (1-5 years)• Current capital / equity position• How the funds will be used to enhance and grow the business• How the business plans to repay debt
FUNDING REQUEST
• Historic financials of the firm• Prospective financials
– Short term (0-1) year– Mid term (1-5) years
– Long term (5-10) years• NPV analysis• Breakeven analysis• ROA and ROE projections
FINANCIAL PROJECTIONS
sba.gov/category/navigation-structure/starting-managing-business/starting-business/how-write-business-plan
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