A complete guide to an audience friendly business plan for entrepreneurs

A COMPLETE GUIDE TO AN AUDIENCE-FRIENDLY BUSINESS PLAN FOR ENTREPRENEURS

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INDEX

1.0 Executive Summary 1.1 General Company Description1.2 Objectives1.3 Business Philosophy1.4 Products & Services 1.5 Sector1.6 Target Customers1.7 Outsourcing1.8 Management1.9 Company Ownership

2.0 Business Idea

2.1 Situation Analysis (Regarding Entrepreneur’s sources and resources) 2.2 SWOT Analysis (Regarding Entrepreneur’s sources and resources) 2.3 Sectoral Prediction 2.4 PEST Analysis2.5 Core Competencies

3.0 Business Model 3.1 CVP (Customer Value Proposition)3.2 Profit Formula3.3 Key Sources3.4 Key Processes3.5 Business Model Innovation

4.0 Business Strategies 4.1 Higher Purpose4.2 Senior Management Strategy 4.3 Corporate Strategy4.4 Competitive Strategy

4.4.1 Competitive Strength 4.4.2 Competitive Advantage

4.5 Functional Level Strategies

5.0 Feasibility 5.1 Sector Background5.2 Market Research

5.2.1 Macro Environment5.2.1.1 Demographic Environment5.2.1.2 Natural Environment5.2.1.3 Technological Environment 5.2.1.4 Politic & Legal Environment5.2.1.5 Cultural Environment

5.2.2 Micro Environment 5.2.2.1 Corporation5.2.2.2 Service Suppliers5.2.2.3 Marketing Instruments 5.2.2.4 Customers 5.2.2.5 Competitors5.2.2.6 Pressure Groups


5.3 Target Customers (Consumer Market) 5.3.1 Cunsumer Buying Behaviours

5.3.1.1 Personal Factors5.3.1.1.1 Demographic Factors5.3.1.1.2 Situational Factors5.3.1.1.3 Interest Level

5.3.1.2 Psychological Factors5.3.1.2.1 Learning5.3.1.2.2 Motivating 5.3.1.2.3 Perception5.3.1.2.4 Attitude

5.3.1.3 Socio-Cultural Factors 5.3.1.3.1 Consulting Groups5.3.1.3.2 Social Stratification 5.3.1.3.3 Culture

6.0 Products & Services 6.1 Total Quality Management6.2 Product & Services Mix

6.2.1 Product or Service Line 6.2.2 Product or Service Line Depth

7.0 Marketing Plan 7.1 Marketing Communication Mix

7.1.1 Marketing Materials7.1.2 Advertisements7.1.3 Customer Loyalty Materials7.1.4 Public Relations

7.2 Distribution Channels 7.2.1 Direct Distribution Channels

7.2.1.1 Personal Networking7.2.1.2 Online Marketing

7.2.1.2.1 E-mail Marketing7.1.1.2.2 Content Marketing

7.2.1.3 Word Of Mouth Marketing7.2.2 Indirect Distribution Channels

7.2.2.2 Companies7.2.2.4 Foreign Associations

8.0 Implementation Plan8.1 Hardware, Software, Facilities, Materials and Labor8.2 Job Descriptions and Duty Assignments

9.0 Financial Plan 9.1 Start-Up Requirements

9.1.2 Total Start-Up Expenses9.2 Sales Forecast

9.2.1 Pessimistic Sales Forecast9.2.2 Ideal Sales Forecast9.2.3 Optimistic Sales Forecast

9.3 Break-Even Analysis9.4 Projected Profit & Loss

9.4.1 Monthly Profit9.4.2 Annually Profit9.4.3 Monthly Gross Margin9.4.4 Annually Gross Margin

9.5 Projected Cash Flow 9.6 Proforma Balance Sheet

10.0 Appendix

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1.0 Executive SummaryExecutive summary can be the only part that will be read by your target audience, that’s why you need to think very carefully about what your target audience might want to be informed about. After deciding what to highlight, you can follow the below path in the executive summary:-Sector and market environment in which the business opportunity arised.-Business opportunity. Define the consumers issue/problem/demand that your business will solve. In other words, why would the business exist?-Key strategies to success. Start with how your products/services differentiate from the competitors. Define why would your products/services be preffered and explain the key strategies to support your ideas. (Key strategies can involve business model innovation as well).-Financial Potential. Explain the projected risks and rewards of your business.-Management Team. Inform the audience about the individuals in management team with their duties.-Required funds. State the required start-up funds as well as annual running costs to the audience.

1.1 General Company DescriptionUse the General Company Description section to inform the audience about the current situations. You can easily create your General Company Description by answering the questions below:-Explain in which life cycle your business is. Is your business idea in designing process? Is your business idea a concept? Is your business idea already established and running? Is your business idea ready to be established?-Where will your business be located?-What kind of products/services will your business offer?-Who will run the business?-What type of legal business structure you planned or existing legal structure of the company.-Current financial situation.

1.2 ObjectivesDefine your short, mid and long term objectives and support them with numerical targets.

1.3 Business PhilosophySince globalization, communities, countries and even continents got closer and closer. This process gave birth to social aware people and social aware businesses. Therefore, in today’s world it is a necessity for your audience to know your point of view and which kind of philosophy your business settles on. You can start by defining your core values and code of conduct (ethics) then you can state why and how your business is social aware. You can also write a sloganlike statement.

1.4 Products / ServicesTill now your target audience had a brief information about your business idea, its now their time to dig deeper to totally understand and evaluate your business model. Therefore, it will be useful to follow the path below:-Define the products/services.-Define the product/service line.-Define the product/service line depth.*Please note that a brief information will be enough to form this section. You will provide the main information later on in the Products/Services main part. Remember, our objective is creating an audience-friendly plan; so providing maximum information in minimum time consumed is our aim.

1.5 SectorBriefly define your sector and state the size and growth potential by using the information in your feasibility study. You may mention about market and competitors as well, or you may not; to let your audience think and be pulled deeper into your business plan.

1.6 Target CustomersBriefly define your target customers and where they are located.


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1.7 OutsourcingBriefly define your outsourcing needs (if exist).

1.8 ManagementBriefly define your organization model and structure. For instance: Functional organization model, Matrix organization model etc. Break down your departments and management team as well.

1.9 Company OwnershipIf your business is already established state your legal ownership type; if not, state the ownership/partnership type that you are interested.

2.0 Business Idea2.1 Situation Analysis (Regarding Entrepreneur’s sources and resources)Analyse and Break down the current situation of the business, concerning inner environment such as: Equities, Finished Products, Ongoing Tasks, Agreements, etc.

2.2 SWOT Analysis (Regarding Entrepreneur’s sources and resources)Define the Strenghts, Weaknesses, Opportunities and Threads.*Please note that a business idea can be implemented in many different ways. For instance, with a bigger amount of investment or with a stronger network your business may reach to higher aims and may bring higher income but in return involves higher risks. Therefore, swot analysis of your business idea should be according to your own sources and resources, as if you will implement and establish it only by yourself. Here comes the importance of understanding the targeted audiences, a less risky plan may bring lesser profits and this might not excite the audiences or a higher risky plan may bring higher profits but this might cause a possible investor to step down. Remember, the very minimized risk of a business is what you can bear only by yourself depending on your own skills, talent, know-how, education, experience, etc. Even labor and outsourcing are elements of risk as well as the required investment amount.

2.3 PEST AnalysisDefine the Political, Economic, Socio-Cultural and Technological facts that may effect your business.*Please note that following the rise of green business; you can involve the following factors to your PEST Analysis in accordance with your sector and/or products/services.-Legal-Environmental-Ethics-Regulatory-Ecologic

2.4 Core CompetenciesCore competencies are the capabilities and capacities which differentiates the business from the competitors. Core competencies is a subpart of Competitive Strategies -> Competitive Advantage.The main idea is describe what differentiates your business from the competitiors. For instance: If your business is about physical production you can test and state your core competencies according to Resource-based view and break down Key Resources:-Valuable-Rare-In-imitable-Non-substitutable-Disponabilitylf your business is about offering services and/or physical production but you are eager to make a difference in terms of management and/or strategic management such as Business Model Innovation, then you may break down the core competencies of the Organizational Culture or the Individuals. For instance; if you own an Organizational Culture that involving skillful, experienced and versatile business professionals, then you may be able to reduce the management and/or running costs by a big margin comparing to the competitors. This as well an element of Core Competency.


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2.5 Sectoral PredictionsIf to think that we are still inside Executive Summary main section, Sectoral Predictions is a very important part. A possible investor would most probably evaluate you together with your business idea. And, if to think that your business is not involved in the core sector of the investor, then he/she would most probably be more interested reading through your predictions to find a common point of view and to evaluate your capability. Remember; An entrepreneur is not someone who has one project at hand. An entrepreneur is the one who understands where the world is directed in terms of Consciousness, Technology and Economic growth. Entrepreneurship essentially requires sustainable creativity, education, perfection and knowledge.

3.0 Business Model3.1 CVP (Customer Value Proposition)Value = Quality(customer benefit) / Cost.CVP in the inner environment starts with a Core Offering and followed by Marketing Mix (4P) Product, Price, Place, Promotion. In the outer environment goes on with Service Offering: Delivery Services, Aftersales Services, Other Services and, on the outermost layer ends with Extended Offering: Brand and Reputation.There are three common types of CVP:1-All BenefitsConsists of: All benefits customers receive from a market offering.Answers the customer question: “Why should our firm purchase your offering?”Requires: Knowledge of own market offering.Has the potential pitfall: Benefit assertion.2-Favorable Points of DifferenceConsists of: All favorable points of difference a market offering has relative to the next best alternative.Answers the customer question: “Why should our firm purchase your offering instead of your competitor’s?”Requires: Knowledge of own market offering and next best alternative.Has the potential pitfall: Value Presumption.3-Resonating FocusConsists of: The key points of difference whose improvement will deliver the greatest value to the customer for the foreseeable future.Answers the customer question: “What is most worthwhile for our firm to keep in mind about your offering?”Requires: Knowledge of how own market offering delivers superior value to customers, compared with next best alternative.Has the potential pitfall: Requires customer value research.As an entrepreneur its always better to follow Resonating Focus to show the audience that your business is born future-oriented.

3.2 Profit FormulaActually there are some people that supports Profit Formula and Business Model are the same concepts. However, even though you have a great offering, if the price is higher than the cunsumers’ bearable cost, the demand to your offering will unfortunately decrease. At the other hand, if you to decrease the price to a bearable level, than because of the costs your profitability will decrease. Therefore, the elements of Profit Formula, such as: Cost, Profit Margin and Income Model are key to determine the right sales price.


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3.3 Key SourcesFirst of all, don’t mix Key Sources with Key Resources. Key Resources were the facts concerning Competitive Strategies. Key Sources are the essentials, musts, for your business model to properly work. We can break down basic Key Source elements as follows:-Labor-Technology-Products-Facilities-Equipments-Intelligence-Channels-Alliances-PartnersThe main question you should be able to answer is; “Which sources will be used in which ways to reach desired Customer Value Proposition, Business Value Proposition and which Profit Formula will be achieved?”

3.4 Key ProcessesKey Processes can be divided into two main categories:1-Administrative: Company rules, indicators, norms etc.2-Operational: Human Resources, Marketing, Planning, After Sales, Customer Relations, etc.Define your essential, must Key Processes that will allow your Business Model to work properly.

3.5 Business Model InnovationBusiness Model Innovation is changing the whole rules of an industry and create a new model of business. Think about IKEA’s business model for instance, before noone was selling demounted furniture.Your project may involve a Business Model Innovation, if so you can follow the below questions to form this section:-What is the consumers issue/problem/demand?-What is your offering to solve it?-Why the sector leaders or the main competitors do not solve it?-If there is a reason why that the others can not solve it, how you will not be effected by the reason?-How you will achieve customer awareness?-What feedbacks you expect from customers? (For instance: Bearing higher costs, Higher satisfaction, Brand loyalty, etc.) -How you will protect your business from the stronger competitors in the new business model of yours? (Assuming that they would intend to implement the same) Or with other words, What Competitive Advantages will you have in the new business model of yours? After answering these questions, you can merge your statement with Key Sources and Key Processes.

4.0 Business Strategies4.1 Higher PurposeHigher Purpose, mission and vision may be used interchangeably. Here we suggest to use Higher Purpose. Purpose refers to the difference you’re trying to make in the world. From another angle, Mission and Vision statements are used in the top sections of a business plan or even there are mission statement based executive summaries as well. However, our purpose is to create an audience-friendly project, and therefore we gave place to entrepreneur’s business philosophy instead of Higher Purpose, Mission & Vision Statements in order to be more organic.


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4.2 Senior Management StrategySenior Management Strategy, Business Strategy, Management Level Strategy are often mistaken with Corporate Strategy.Senior Management Strategies are the first strategies to plan and implement, they cover the whole organization and products/services. There are four main types of Senior Management Strategies:1-Growth Strategy2-Downsizing Strategy3-Mixed Strategy4-Stabile StrategyIn a start-up business the implemented strategy would most likely be growth strategy but if the business plan refers to an established business then mixed and stabile strategies might be implemented.For instance, the business is the manufacturer of production line a, after anticipating the arised opportunity the business decided to manufacture another product line, product line b. However, for many reasons manufacturing of production line a can not be cut so, here the business may choose to apply stabile strategy or downsizing strategy for production line a; at the other hand a growth strategy will be needed for the new products, production line b. If we sum up this strategic plan, we can say: A Mixed Strategy will be planned and implemented as Senior Management Strategy (Business Strategy, Management Level Strategy).

4.3 Corporate StrategyNow its time to implement our selected Senior Management Strategy to the corporation.For instance, if the above mentioned product line b is related with product line a, we should choose -Related Diversification.Common types of Corporate Strategy:-Forward Integration.Gaining ownership or increased control over distributors or retailers.-Backward Integration.Seeking ownership or increased control of a firm’s suppliers.-Horizontal Integration.Seeking ownership or increased control over competitors.-Market Penetration.Seeking increased market share for present products or services in present markets through greater marketing efforts.-Market Development.Introducing present products or services into new geographic area.-Product Development.Seeking increased sales by improving present products or services or developing new ones.-Diversification.Adding new products or services in order to achieve bigger market share.-Related Diversification.Adding new but related products or services.-Unrelated Diversification.Adding new, unrelated products or services.-Technology Retrenchment.Regrouping through cost and asset reduction to reverse declining sales and profit.-Divestiture.Selling a division or part of an organization.-Liquidation.Selling all of a company’s assets, in parts, for their tangible worth.


4.4 Competitive StrategyCompetitive Strategy is about how we will reach the targeted income, sales volume or how our business model may gain advantage comparing to our competitiors. There are three main types of Competitive Strategies:1-Cost Leadership.Cost Leadership means our business provides the lowest cost amongst our competitiors in the market. Cost Leadership is oftenly implemented together with Market Penetration.2-Differentiation.Differentiation means that our business provides unique products or services that our competitiors do not or can not provide. Differentiation usually offers premium costs and usually relies on the strength obtained from Forward or Backward integration.3-Focus.The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others.

4.4.1 Competitive StrengthDefine why and how your business will gain strength comparing to your competitors. For instance, lowest production cost, better distribution channels, better brand equity, etc. 4.4.2 Competitive Advantagelf to compare with Competitive Strength, Competitive Advantage should be sustainable. According to Michael Porter Competitive Advantage of a company relies on the operational ability of performing primary and secondary activities which also forms the Value Chain.

According to Michael Porter (1985), the primary activities are:-Inbound Logistics. Inbound Logistics involve relationships with suppliers and include all the activities required to receive, store, and disseminate inputs.-Operations. Operations are all the activities required to transform inputs into outputs (products and services).-Outbound Logistics.Outbound Logistics include all the activities required to collect, store, and distribute the output.-Marketing and Sales.Marketing and sales activities inform buyers about products and services, induce buyers to purchase them, and facilitate their purchase.-Service.Service includes all the activities required to keep the product or service working effectively for the buyer after it is sold and delivered.

Secondary activities are:-Procurement.Procurement is the acquisition of inputs, or resources, for the firm.-Human Resource Management.Human Resource Management consists of all activities involved in recruiting, hiring, training, developing, compensating and (if necessary) dismissing or laying off personnel.-Technological Development. Technological Development pertains to the equipment, hardware, software, procedures and technical knowledge brought to bear in the firm’s transformation of inputs into outputs.-Infrastructure. Infrastructure serves the company’s needs and ties its various parts together, it consists of functions or departments such as accounting, legal, finance, planning, public affairs, government relations, quality assurance and general management.


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The ones who would like to dig deeper and form a widespread Competitive Advantage, can benefit from Michael Porter’s Five Forces of Competitive Position Analysis:

1. Supplier power. An assessment of how easy it is for suppliers to drive up prices. This is driven by the: number of suppliers of each essential input; uniqueness of their product or service; relative size and strength of the supplier; and cost of switching from one supplier to another.2. Buyer power. An assessment of how easy it is for buyers to drive prices down. This is driven by the: number of buyers in the market; importance of each individual buyer to the organisation; and cost to the buyer of switching from one supplier to another. If a business has just a few powerful buyers, they are often able to dictate terms.3. Competitive rivalry. The main driver is the number and capability of competitors in the market. Many competitors, offering undifferentiated products and services, will reduce market attractiveness.4. Threat of substitution. Where close substitute products exist in a market, it increases the likelihood of customers switching to alternatives in response to price increases. This reduces both the power of suppliers and the attractiveness of the market.5. Threat of new entry. Profitable markets attract new entrants, which erodes profitability. Unless incumbents have strong and durable barriers to entry, for example, patents, economies of scale, capital requirements or government policies, then profitability will decline to a competitive rate.Arguably, regulation, taxation and trade policies make government a sixth force for many industries.Please note that, Marketing Function Strategies / Plan takes place in this business plan.

4.5 Functional Level StrategiesIn accordance with implemented Corporate and Competitive Strategies, Functional Level Strategies should be implemented to Mid and Lower Mid Management Levels to apply the choosen functional decisions and politics.

Functional Level Strategies are commonly applied to the following functions of the company: -Marketing.Marketing Strategy covers the decisions and politics of; Product Mix, Marketing Communication Mix, Distribution Channels, Sales Promotions. -Finance.Finance Strategy covers the decisions and politics of; Capital Structure, Debt Politics, Asset Management, Distribution of Benefits.-Production.Production Strategy covers the decisions and politics of: Quality, Eficiency, Production Planning, Legal Regulations, Technology. -Human Resources.Human Resources Strategy covers the decisions and politics of; Labor, Legal Regulations, Training.-R&D.R&D Strategy covers the decisions and politics of; Product / Service innovations, Technologic Predictions, Patents and Licenses.

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5.0 FeasibilityPlease note that, in this business plan we will talk about the results of our feasibility study, therefore; Legal, Financial / Economic, Technologic researches as well as competitors took place in Macro Environment section. This type of gradual feasibilty is audience-friendly and easy to follow.

5.1 Sector BackgroundBriefly define the sector that your business will enter. Give a brief information about the history of the sector as well as growth capacity. Talk with letters but always support with numbers.

5.2 Market Research 5.2.1 Macro Environment5.2.1.1 Demographic EnvironmentDemography: Is the study of human populations in terms of size, density, location, age, gender, race occupation, and other statistics.Briefly define the Demographic Environment of your business. *Tip: After defining every part of Market Research Section; you may add your notes related to your business idea, business model or strategies. For instance, the defining part can be the cause and the relation between cause and the base your busines idea, business model or strategies rest can be the effect. From another point of view, you can form each section as SWOT analysis, but don’t forget to write a summary type paragraph.

5.2.1.2 Natural EnvironmentBriefly define the Natural Environment of your business. 5.2.1.3 Technological Environment Briefly define the Technologic Environment of your business. 5.2.1.4 Politic & Legal EnvironmentBriefly define the Politic & Legal Environment of your business. 5.2.1.5 Cultural Environment Briefly define the Cultural Environment of your business. 5.2.2 Micro Environment 5.2.2.1 CorporationBriefly define the inner corporation environment of your business. For instance, strong departments, weak departments. 5.2.2.2 Service SuppliersBreak down the service suppliers of your business one by one. Talk about pros and cons. *Keep in mind: Michael Porter’s five forces; Supplier Power. 5.2.2.3 Marketing Agents Break down the wholesalers and retailers of your business one by one. Talk about pros and cons.

5.2.2.4 Customers Define your target customers. Be specific. 5.2.2.5 CompetitorsBreak down the main competitors of your business. Talk about their strengths and weaknesses.

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5.2.2.6 Pressure GroupsTalk about the pressure groups that your business might be effected and how you will keep them under control.For instance, Financials as pressure groups, Media as pressure groups, Government as pressure groups.

5.3 Target Customers (Consumer Market) 5.3.1 Cunsumer Buying Behaviours 5.3.1.1 Personal Factors 5.3.1.1.1 Demographic FactorsTalk about why and how the demographic factors of your targeted consumers will influence their buying behaviours towards your products/services side. 5.3.1.1.2 Situational FactorsSituational Factors for instance, buying an umbrella while being left under the rain or taking financial precautions in economic crisis. Talk about in which situations and why your targeted consumers will choose your products/services 5.3.1.1.3 Interest LevelInterest Level has an emotional aspect. For instance, people perceive Apple as more than a technological brand. Talk about your targeted consumers’ interest level to your products/services and how you will create an emotional dimension. 5.3.1.2 Psychological Factors5.3.1.2.1 LearningLearning involves Brand Loyalty and means automatized buying behaviour. For instance, in supermarkets consumers are automatically directed to the brands that they knew, learnt and got used to purchasing.Talk about your target consumers’ learnt buying behaviours and how you will create a strong brand loyalty towards your business. 5.3.1.2.2 Motivating Motivation is the main energy of buying behaviours. For instance, need of prestige directs consumers to buying well-known premium brands. Talk about how you will motivate your targeted consumers towards your business.

5.3.1.2.3 PerceptionPerception is the personal impressions of the consumers towards a brand. The brand image represents and individual personality. For instance, you may decide your brand to represent a responsible personality, a smart personality, an elite personality. But the decision has to lean onto a structured idea. Define how your consumers perceive your main competitors and why your represented brand image will be choosen. 5.3.1.2.4 AttitudeAttitude is the behaving version of beliefs and information. Consumers may evaluate your business according to their received information or beliefs. Pressure Groups are the key elements of consumers’ attitude. Define how your target consumers’ attitudes towards your competitors and talk about how you will create and control a consumer attitude that will direct consumers to your business.

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5.3.1.3 Socio-cultural Factors 5.3.1.3.1 Consulting GroupsConsulting Groups covers the groups that consumer is involved. For instance, colleagues. Consulting groups may have some norms and, whomever behaves differently may be excluded. Therefore consulting groups have a pressure group effect on the consumers. Define the consulting groups of your targeted consumers and talk about how your business will be acknowledged by them. 5.3.1.3.2 Social StratificationCan be mentioned as Social Class; is centered on models of socio-economic classes in which people are grouped into a set of hierarchical social categories. We can break down the categories as follows: -Global Elites-Social Elites-New Riches-Upper-mids-Lower-midsDefine in which social classes your targeted consumers are involved. Talk about how you will catch their interest. 5.3.1.3.3 CultureConcantrate on sub-cultures and write down which sub-cultures preffers which of your competitors. Talk about to which sub-cultures your business will address and how your business will be acknowledged.

6.0 Products & Services 6.1 Total Quality Management (In refer to Manufacturing Approach)Here briefly define your business’s manufacturing philosophy. Break down of manufacturing approaches are as follows:-Total Quality Management-Lean-Process Focus-JIT (Just in Time)-Six Sigma-CAM (Computer Aided Manufacturing)

6.2 Product / Services MixBreak down and describe all your products/services, with designs and data sheets or catalogues, according to Line and Line Depth. 6.2.1 Product or Service LineDefine the product/service lines with brief information of the products.6.2.2 Product or Service Line DepthDefine the products/services by product/service line depth.

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In this business plan, we decided to give place to Marketing Plan, However, you may need or preffer to add a Production Plan as well.

7.0 Marketing Plan 7.1 Marketing Communication MixMarketing Communication Mix covers all the marketing materials, designs, packages, colors, branding of the products/services. This is how your business receives first impression. In order to form a structured impression, your marketing mix has to be in accordance with the followings:-Business Philosophy-Higher Purpose-Customer Value Proposition-Functional Level Strategies -> Marketing. 7.1.1 Marketing MaterialsBreak down digital and printed marketing materials and costs by dividing as Start-up and Annual costs.

7.1.2 AdvertisementsBreak down advertisements and costs by dividing as Start-up and Annual costs.

7.1.3 Customer Loyalty MaterialsCustomer Loyalty Materials covers pre and post sales promotions, gifts, etc. Break down the materials and costs by dividing as Start-up and Annual costs. Please note that, Customer Loyalty Materials’ costs are variable costs. To determine a realistic amount, you need to first determine annual sales target.

7.1.4 Public RelationsBreak down Public Relation projects (if exist) and divide the costs as Start-up and Annual.

7.2 Distribution ChannelsBreak down all the marketing distribution channels that you plan to use as follows and, divide the costs as Start-up and Annual.

Please note that, below distribution channels are written to form examples, you can add or erase according to your own plan.

7.2.1 Direct Distribution Channels7.2.1.1 Personal Networking7.2.1.2 Online Marketing7.2.1.2.1 E-mail Marketing7.1.1.2.2 Content Marketing7.2.1.3 Word Of Mouth Marketing7.2.2 Indirect Distribution Channels 7.2.2.2 Companies7.2.2.4 Foreign Associations

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8.0 Implementation PlanYou can break down all the processes as the below table indicates. Please note that this section is very important for the audience to see if your business project is matured or not.

Department Task Description Start Finish Cost Responsible Process

Marketing Printed marketing materials 01.01.2015 12.01.2015 $2.000USD Mr. Xy Inserts sent to be printed

*Oursourced Webdesign 01.01.2015 20.01.2015 $500USD VZ Digitals Layout completed

8.1 Hardware, Software, Facilities, Materials and LaborBreak down all the hardware, software, facility, materials and labor needs as the below table indicates.

Need Related Function Motive Source Cost Importance Level (1-5)

Min. 4 room office in XX area.

Management To run managerial functions of the business.

Xy Real Estate Address: Contact:

$2.500USD one time. $1.500USD monthly

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CRM Software Marketing & PR Department -> Customer Relationship Management

To implement customer loyalty programs.

VX IT Inc. Address: Contact:

$120USD monthly. Plus $50USD for one time training.

3 lf not, with a heavier workload we can program MS Office till we reach higher sales volume.

8.2 Job Descriptions and Duty AssignmentsWrite down all the Human Resource need with Job Descriptions and Duty Assignments.You can find sample forms in the following pages.

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XX LLC -SAMPLE- JOB DESCRIPTION

SECTION/DEPARTMENT

LOCATION

JOB TITLE

REPORTING TO TITLE

LEVEL/DEGREE JOB TYPE:

PART TIME

INTERN

HOURS ________ / WEEK

RESPONSIBILITY

GENERAL DESCRIPTION

JOB EXPERIENCE NEEDS

EDUCATION NEEDS

REVIEWED BY TITLE

APPROVED BY TITLE

DATE POSTED

EMPLOYMENT DATE


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-SAMPLE- General Manager Job Description

Job Code: 001 Job Title: General Manager XX Hotels Reports To: XX Hotels LLC CEO – XX Hotels LLC Vice-President Prepared Date: January 2015 SUMMARY: Oversees all aspects of Property Management, including maximization of financial performance, guest satisfaction, and staff development within established quality standards. Responsible for the hiring, training and discipline of all hotel staff. QUALIFICATIONS: To perform this job successfully, the individual must be able to perform each essential duty and responsibility in a safe and satisfactory manner, and the individual must be punctual and have a good attendance record, and have reliable means of transportation to work. The requirements listed below are representative of the knowledge, skill, and/or ability required. *Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. ESSENTIAL DUTIES AND RESPONSIBILITIES: - Planning and Organising accommodation, catering and other hotel services; - Promoting and Marketing the business; - Managing budgets and Financial plans as well as controlling expenditure; - Maintaining statistical and Financial records; - Setting and Achieving sales and profit targets; - Analysing sales figures and Devising marketing and Revenue Management strategies; - Recruiting, Training and Monitoring staff; - Planning work schedules for individuals and teams; - Dealing with customer complaints and comments; - Addressing problems and troubleshooting; - Supervising maintenance and supplies; - Dealing with contractors and suppliers; - Ensuring security is effective; - Carrying out inspections of property and services; - Ensuring compliance with licensing laws, health and safety and other statutory regulations. - Understands the government regulations affecting hotel’s operations, ensuring hotel is operated in compliance with all applicable laws, ordinances, regulations, and requirements of any federal, state or municipal authority. - Deals with the general public, customers, employees, union and government officials with tact and courtesy. - Accepts full responsibility for managing an activity.

* Other duties may be assigned.

SUPERVISORY RESPONSIBILITIES: Typically, directly supervises 2 to10 employees at the hotel, including all department heads. Indirectly supervises all hotel personnel. Responsibilities include recruiting, interviewing, hiring, and training employees; planning, assigning, and directing work; appraising performance; rewarding and disciplining employees; addressing complaints and resolving problems. EDUCATION and/or EXPERIENCE: - University degree in Business Administration, Economics or Hospitality Management. Masters degree is a plus. - A Certified Hospitality Administrator designation is preferred. - Minimum 10 years of experience in five star hotels. Minimum 3 years of experience as General Manager or parallel titles.


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LANGUAGE SKILLS: - English ILR Level4 or equal. COMPUTER SKILLS:

Microsoft Word Microsoft Excel Yield Management Systems programs Property Management System (PMS) programs Daily Revenue System (DRS) programs Central Reservation System programs Payroll programs

REASONING ABILITY: General Managers must have developed reasoning abilities to the point to be able to:

Apply common sense understanding to carry out instructions furnished in written, oral, or diagram form. Use mathematical skills to interpret financial information and prepare budgets. Read and interpret business records and statistical reports. Make business decisions based on production reports and similar facts, as well as on your own

experience and personal opinions. PHYSICAL DEMANDS: The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. While performing the duties of this job, the employee is regularly required to stand; walk; use hands to finger, handle, or feel; reach with hands and arms; stoop, kneel, crouch, or crawl; and talk or hear. The employee must regularly lift and/or move up to 10 pounds and frequently lift and/or move up to 25 pounds. The employee must be able to see differences in widths and lengths of lines such as those on graphs. *Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. ENVIRONMENTAL CONDITIONS: Inside: Protection from weather conditions but not necessarily from temperature changes. A job is considered "inside" if the worker spends approximately 75 percent or more of the time inside. WORK ENVIRONMENT: The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

Must be able to work effectively in a stressful environment, communicate well with others, effectively deal with guests, and accept constructive criticism from supervisors.

Must be able to change activity frequently and cope with interruptions. IMPORTANT NOTE: Essential functions of this job are described under the headings above. The job requirements and features are subject to change from time to time due to the then-current needs and requirements of the Company.


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9.0 Financial Plan 9.1 Start-Up Requirements 9.1.2 Total Start-Up Expenses9.2 Sales Forecast 9.2.1 Pessimistic Sales Forecast9.2.2 Ideal Sales Forecast9.2.3 Optimistic Sales Forecast9.3 Break-Even Analysis9.4 Projected Profit & Loss9.4.1 Monthly Profit9.4.2 Annually Profit9.4.3 Monthly Gross Margin9.4.4 Annually Gross Margin 9.5 Projected Cash Flow 9.6 Proforma Balance Sheet

*Soon you can find Financial Plan Tips in our webpage.

10.0 AppendixIn 2.2 SWOT Analysis section we had mentioned that a business can be planned in many different ways; some carries more risks, some carries lesser risks and lesser income, etc. Now its time to talk about the different plans. For instance: lf the investment amount would be raised around 50%, we will be able to activate x and y distribution channels and gain a much better competitive advantage; in this way, we project around %25 raise in annual sales volume.

Its always an advantage to have plan b and c.

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With the prospect of helping development of Conscious Entrepreneurs
