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8/14/2019 Business Plan Parts 2
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Business Plans
Guidelines
By
Mohammad Ali
0323-5111105
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Introduction
Focus your thinking
Establish realistic strategy
Financing and other support Reaction by others
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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
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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
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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 The company: past, present and
future
The market The Product/service
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Sections of Business Plan -
continued
Sales and Promotion
Financial projections
Profit and loss Balance sheet
Cash flow
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Other sections: technology
based
Management team: people who fund other
people value management skills above
ideas
Risk factors: shows that you know whatcould go wrong and plan to avert it
Marketing plan: if this is innovative how
are you going to get people to use it
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Packaging the Plan
It is a living document
No right/wrong way: the need of
reader is essential
What are the challenges/ questions
that can be raised by reader: answer
these.
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Packaging the Plan
Include supporting materials
Dont make unsupported statements
Designate an outside reviewer/reader that can critique plan
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Guidelines forBusiness Plan
by Ideas 2010Guidelines for Outline:
Executive Summary: The Opportunity Problem to solve or need to be filled The Description of the Business
How the proposed business solves the problem or fills the need Competitive Advantages Description of the business model The Target Market The Management Team Brief Summary of Financial Projections
Description of What the Business Needs The amount of capital needed and what the capital will be used
for, if the plan is going to a potential investor Exit strategy for investors (if the plan is going to investors)
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2. The Business:
A. The Opportunity
Problem to solve or need to be filled
B. The Description of the Business
How the proposed business solves the problem or fills the need
Brief company history or background
Company mission and objectives
C. Competitive Advantage
Description of the business model
How the business will create a sustainable competitive advantage
D. Current Status and Requirements Description of where the business stands today
Description of what the business needs to move forward
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3. Management Team
A. Management Team
Management experience
Management ability
Technical expertise
B. Board of Directors
Number of directors
Composition of the boardC. Board of Advisors
Number of advisors
Composition of advisory board
How the advisory board will be used
D. Key Professional Service Providers
Law firm Accounting firm
Business consultants
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4. Company Structure,
Intellectual Property and
Ownership:A. Organizational Structure
Organizational chart
Description of the organizational structureB. Legal Structure
Legal form of organization
Ownership structure of the business
C. Intellectual Property
Patents, trademarks and copyrights appliedfor or approved
5 I d t A l i
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5. Industry Analysis:
A. Industry Description
Industry trends
Industry size
Industry attractiveness (growing, mature or decline)
Profit potential
B. Target Market
Description of target market
C. Competitive Position with Target Market
Competitor analysis
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6. Marketing Plan:
Matrix ( BCG, Product competitive grid )
PEST, SWOT & TOWS Analysis
Porters Model
Competitive Grid
Product Feasibility and strategy
Product strategy
Concept testing
Usability testing
Pricing Strategy
Channels of Distribution
Promotions and Advertising
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6. Marketing Plan: cont
Marketing Material Required:
Flex (3*5)
Standee (5*2)
BrochuresVisiting cards
Newspaper or magazine ad
Website
Any other marketing material
7 O ti Pl
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7. Operations Plan:
A. Method of Production or Service DeliveryB. Availability of Qualified Labor PoolC. Business Partnerships
Types of business partnerships
Purposes of business partnerships
D. Quality ControlE. Customer Support
Customer support strategies
Customer support obligations
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8. Financial Plan:
Capital Requirement for the Next Threeto Five years
Sources and uses of funds Overview of Financial Projection
Explanation of how financial projectionsare prepared (assumption sheet)
Income Statements Cash Flow Projections
Balance Sheets Payback and Exit strategy
9 C iti l Ri k F t
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9. Critical Risk Factors:
A. Management Risks
B. Marketing Risks
C. Operating Risks
D. Financial RisksE. Intellectual Property
Infringement
F. Other Risks as AppropriateG. Remarks Pages
10 A di ( t fil )
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10. Appendix (separate file)
A. Supporting Documents
Resume of founder and key
employees
Pictures of product prototypes
Other documents as appropriate
Legal documentation