Business Plan Parts 2

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