What is a Business Plan? A business plan is a written document
that describes your business start-up or expansion.
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Why You Need to Write a Business plan? To Raise Capital Lenders
Investors To plan company growth: Identify markets Strategize ways
to grow Identify opportunities and threats Have a clear vision of
what to do
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Key Sections of the Business Plan Cover Page Executive Summary
Company Description Products & Services Market Analysis
Production & Operation Plans Management Financial Statements
Appendix
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Executive Summary Max 1-2 pages long Why your business idea is
feasible? Who will finance your company initial expenses? How will
you use this money? Who is in your team? What is your business
model? How revenue will be generated?
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Company Description What products or services you are planning
to sell? Where will your business be located? Is your company: 1)
An existing business? 2) Start-up Business? 3) A Franchise? Will
your company be a sole proprietorship, partnership, LLC or an S
corporation?
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Products and Services What is different about your products or
services? What is your gross profit margin? How do you know your
product or service meet the needs of your target customers? Are
there any substantial opportunities for growth? Are your products
and services protected? (patents, trademarks, copyrights)
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Market Analysis Do you know your customers? ( Age, income,
purchasing habits) How are clients reached? Is this a B2C or B2B
company? Who is your competition? How would you beat your
competition? What are the typical distribution channels? What is
the price for your products and services?
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Market Analysis Do you know your industry? Is the industry
growing or declining? How big is the opportunity? What are the
entry barriers? Is the industry labor intensive? Is technology
impacting your industry? How?
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Production & Operation Plans Is this a brick and mortar
operation? Where your firm will be located? Do you need to modify
an existing building? How many employees? What is your criteria for
hiring? How many hours of operation per day/week?
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Management Who will be the key personnel in your company? Will
your partner part of the management team? What are your or key
personnel management skills or experience? What will your
responsibilities? Who will be your professional supporting system?
(advisors, accountants, attorneys)
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Financial Statements Income statement Cash flow Balance
Sheet
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Anns Nursery-Projected Income StatementJanFebMar NovDecTotals
Income Local Nursery Plant mix 10,000 250,000 Web Gardner Plant Mix
- - - 20,000 5,000 57,000 Distant Nursery Plant Mix - - - 20,000
10,000 40,000 Total Income 10,000 50,000 25,000 347,000 Cost of
Sales Local Nursery Plant mix 5,500 137,500 Total Cost of Sales
5,500 29,500 14,500 195,700 Gross Margin 4,500 20,500 10,500
151,300 Salaries and Wages Owner's Compensation 4,000 48,000
Salaries 3,000 36,000 Payroll Taxes and Benefits 834 10,010 Total
Salary and Wages 7,834 94,010 Fixed Business Expenses Advertising
600 7,200 Legal and Professional Fees 150 1,800 Office Expenses
& Supplies 200 2,400 Rent (on business property) 300 3,600
Telephone and Communications 250 3,000 Travel 200 2,400 Utilities
500 6,000 Total Fixed Business Expenses 4,300 51,600 Other Expenses
Amortized Start-up Expenses 244 2,933 Depreciation 730 8,757
Interest Commercial Loan 254 251 249 231 229 2,895 Line of Credit -
70 157 261 196 2,548 Taxes - - - - - - Total Other Expenses 1,678
1,743 1,826 1,896 1,826 22,402 Net Income (9,312) (9,378) (9,460)
6,470 (3,461) (16,712)
Anns Nursery - Balance Sheet Base PeriodEnd of Year One Assets
Current Assets Cash 3,000 Accounts Receivable - 37,500 Inventory
30,000 Prepaid Expenses 8,800 5,867 Total Current Assets 41,800
76,367 Fixed Assets Real Estate-Land 100,000 Buildings 30,000
Leasehold Improvements 15,000 Equipment 5,000 Furniture and
Fixtures 2,000 Vehicles 20,000 Total Fixed Assets 172,000 Less:
Accumulated Depreciation - 8,757 Total Assets 213,800 239,609
Liabilities and Owner's Equity Liabilities Accounts Payable -
14,500 Loan Payable 33,800 30,169 Mortgage Payable 50,000 49,064
Vehicle Loans 15,000 11,580 Line of Credit Balance - 36,009 Total
Liabilities 98,800 141,321 Owner's Equity Common Stock 115,000
Retained Earnings - (16,712) Total Owner's Equity 115,000 98,288
Total Liabilities and Owner's Equity 213,800 239,609
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Appendix Resumes of key personnel Sales agreements Partnership
agreements Past tax returns Bids Contracts
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Gonzalo Manchego Business Consultant Marketing
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UI21 Business Plan - Marketing Sections Markets: Describe your
product or service, describe who is going to buy your products and
who are your potential customers. Quote facts that add credibility.
Up to 120 words. Marketing Strategy: Describe your competitive
advantage, average market prices for similar products or services.
Up to 120 words. Sales and promotions: How you plan to sell your
products or services. Up to 120 words.
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UI21 Business Plan - Markets Description of Your Product /
Service : Describe all your products and services. Explain how your
product or service meets consumer needs Explain how your product is
different. Explain if you have any existing, pending, or if you
will need future copyright or patent filings.
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Is There a Market for my Products/Services? Check if your
product/service is needed Use an advisory board Survey your
customers Focus Groups Use a suggestion box Customer want list If
so, identify your target market
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UI21 Business Plan - Markets Industry Description and Outlook
Describe your industry, forecasted industry growth, major customer
groups. Is the industry growing or declining? Is the industry
consolidated or fragmented? How big is the opportunity? What are
the entry barriers? Is the industry labor intensive? Is technology
impacting your industry? How? Technology provides opportunities and
new ways to conduct businesses Ex: Internet, software (sas),
on-line stores, apps for smartphones, 3D printers
First Research First Research is the leading provider of market
analysis tools that help you perform faster and smarter, open doors
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synthesizing hundreds of sources into an easy to digest format a
sales person can consume quickly to better understand a prospects
or clients business issues. Our customers include leading companies
in banking, accounting, technology, telecommunications, business
process outsourcing, and professional and business services. Used
by thousands of sales and marketing professionals, First Research
can benefit any organization that has prospects in multiple
industries. Our product is supported by a team of industry
specialists, many of which have advanced degrees and 10-20 years
experience in business writing about companies and industries, with
deep knowledge in specific areas such as banking and finance,
computers and telecommunication, manufacturing, media, retail, and
real estate. Today First Research, a division of Hoover's Inc. and
located in Austin, Texas, offers customers industry research
reports covering over 1000 industry segments. Many of our profiles
include in- depth international industry information, creating a
comprehensive suite of data that is continuously updated to ensure
content is both timely and top of mind.
D&B Dun & Bradstreet Corporation, known as D&B, is
one of the world's leading suppliers of business information,
services, and research. Its database contains information on more
than 200 million companies in over 200 countries, including the
largest volume of business-credit information in the world. The
company's risk management segment (the largest segment, accounting
for more than half of D&B's revenues) sells that information
and integrates it into software products and Web- based
applications. D&B also offers marketing information and
purchasing-support services.
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Business Source Premier Business Source Premier is the
industry's most popular business research database, featuring the
full text for more than 2,200 journals. Full text is provided back
to 1965, and searchable cited references back to 1998. Journal
ranking studies reveal that Business Source Premier's full-text
coverage outshines its competitors in all business disciplines,
including marketing, management, MIS, POM, accounting, finance and
economics. Additional full text, non-journal content includes
market research reports, industry reports, country reports, company
profiles and SWOT analyses.
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Hoovers Hoovers Inc., a subsidiary of The Dun & Bradstreet
Corporation, offers proprietary business information through an
online platform and integrated workflow solutions. Whether you are
looking for leads, companies, or industries, our data on more than
85 million corporations, 100 million people, and 1,000 industries
fuels powerful data cleansing, analysis, list building, and
corporate linkage capabilities that accelerate your sales and
marketing cycles. In 2003, Hoovers became part of Dun &
Bradstreet, expanding the breadth of information to more than 240
million business records today through access to Dun &
Bradstreets global database, the largest single source of business
information anywhere.
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IBIS World IBISWorld is one of the world's leading publishers
of business intelligence, specializing in Industry research and
Procurement research. Since 1971, IBISWorld has provided thoroughly
researched, accurate and current business information. Today,
IBISWorld employs teams of analysts in the US, UK and Australia
that scour economic, demographic and government data so you dont
have to. IBISWorld research provides your organization with
valuable industry market research and procurement research, so you
can make better business decisions, faster. IBISWorld's unrivaled
range of business intelligence is available online wherever and
whenever you need it. Whether your company requires a better
understanding of market conditions now and in the future, whether
you need a clearer picture of major suppliers or a supply chain, or
whether you need to keep abreast of competitor activity, IBISWorlds
suite of business intelligence reports will keep you ahead of the
competition.
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Mintel Mintel is the worlds leading market intelligence agency,
with offices in London, Chicago, Shanghai, Belfast, Kuala Lumpur,
Mumbai, Munich, New York, So Paulo, Singapore, Sydney, Tokyo and
Toronto. Mintel in the Media is a review of the past week, bringing
together a selection of the most high profile press stories
showcasing Mintels data and analysis from around the world.
Highlights from the past week include: Forbes The High Stakes Of
Craft Beer Marketing Research from Mintel reports sales have
doubled in the past five years, and are on track to surpass $36
billion by 2019. New York Times Owls Brew Tea-Infused Cocktail
Mixers Find Their Flow Mintel, a market research firm, said about
82 percent of United States consumers over the age of 18 drink tea.
At the same time, demand for premium cocktail mixers, which contain
natural ingredients, is surging. Beverage Daily High strength beers
are booming but for how long? 1 in 4 beers launched in 2014 were
high ABV, says Mintel. Almost one in four beers launched in 2013
and 2014 were high strength a significant rise since 2012 with
craft beer driving acceptance and popularity among consumers,
according to Mintel.
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Google Trends
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Alexa Alexa is a global pioneer in the world of analytical
insight. Our vast experience means we've dealt with all of the
pitfalls and tripped over all of the landmines, and over time,
developed the most robust and accurate web analytics service of any
provider. Alexa's traffic estimates are based on data from our
global traffic panel, which is a sample of millions of Internet
users using one of over 25,000 different browser extensions. In
addition, we gather much of our traffic data from direct sources in
the form of sites that have chosen to install the Alexa script on
their site and certify their metrics. Our global traffic rank is a
measure of how a website is doing relative to all other sites on
the web over the past 3 months. The rank is calculated using a
proprietary methodology that combines a site's estimated average of
daily unique visitors and its estimated number of page views over
the past 3 months.
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UI21 Business Plan - Markets Target Markets Identify your
target markets. Research and include the following information
about your market: Distinguishing characteristics Is this a B2B or
B2C enterprise? What are the critical needs of your potential
customers? Are those needs being met? What are the demographics of
the group and where are they located? Are there any seasonal or
cyclical purchasing trends that may impact your business? Size of
the primary target market What are the typical annual revenues for
similar firms in your market? What is the forecasted market growth
for your industry? How much market share can you gain? What is the
market share percentage you expect to reach? How many customers per
year will your company serve? Will your target market has a
geographical boundary?
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Distinguishing Characteristics Demographics: Information on
customers age, income, race Psychographics: Information on factors
that influence consumers purchases such as perception, attitudes
and personality Geographic: Information on customers location:
region, suburban or urban areas Behavioral: How often they buy,
life style, spending patterns, sex of the decision maker, response
to advertising, media they use (TV, radio, internet)
UI21 Business Plan - Marketing Strategy Competitive Analysis
Your competitive analysis should identify your competition by
product line or service and market segment. Assess the following
characteristics of the competitive landscape: Market share
Strengths and weaknesses Are there any barriers that may hinder you
as you enter the market? Are there any indirect or secondary
competitors who may impact your success? What barriers to market
are there (e.g., changing technology, high investment cost, lack of
quality personnel)? Average market prices for similar products or
services Regulatory Restrictions Include any customer or
governmental regulatory requirements affecting your business, and
how youll comply. Also, cite any operational or cost impact the
compliance process will have on your business.
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Competitive Analysis Know your competition Who is already
there? What products do they offer? Where are their locations? What
are their hours? What are their prices? What are their strengths
and weaknesses? Visit them Talk to their suppliers and vendors
Check their website, Facebook, Twitter, blogs
SWOT ANALYSIS Strengths Management experience Good Location
Excellent Reputation High Customer Loyalty Weaknesses No Parking
Small Size High Employee turnover Low gross margins
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Opportunities New market Technology Changes in regulations New
services/product Threats Barriers to entry New competition
Saturated market Changes in consumer preferences SWOT ANALYSIS
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Marketing Strategies Explain how products/services will satisfy
the needs of customers Do you plan to increase marketing share or
expand product range? High volume vs high price. Volume vs profit
At what price products/services will be sold ? What distribution
channels will be used? How the company will communicate with
customers?
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Marketing Strategies - Marketing Mix Product Price Place
Promotion
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62 Products and Services What are your products/services? Which
ones are high volume sellers? Which ones are the most profitable?
Where is your product/service in the life cycle? Introduction: New
to customers: Iphone- customer education is needed Growth: Business
begins profiting Maturity: Market is saturated, highly competitive
Decline: Sales fall, obsolescence, new customer preferences How is
your product different? Positioning, pricing
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Market Positioning Products have no universal appeal. Consider
distinct product position for each segment Positioning on specific
product features On benefits Against another product Class
dissociation: new vs old
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Pricing Penetration pricing: Below competitors price. Premium
pricing: Above competitors price. Economy pricing: Just above
product cost Price Skimming: Set the price high and gradually lower
it Odd pricing: Price end in 9 Multiple pricing: 2 for $
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Pricing How much should I charge? 3 Cs of Pricing: Cost,
Competition, Customers Supply and Demand The right price is the one
that the market bears
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Place (Distribution) Location, location, location Distribution:
Provide a product at a place which is convenient for consumers to
access. Intensive: Product is everywhere Exclusive: Franchises with
exclusive territories Selective: Product is sold in just some
stores Type of Channel: Direct or Indirect sales (retail)
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Promotion Communication between the seller and the potential
customer intended to influence the customer. Ways to promote
products and services are: Personal Selling or sales force Sales
Promotion: Short term incentive to buy a product: Ex: coupons,
product samples, rebates. Public Relations: Manages the flow of
information between an organization and its target market. It does
not require any payment. Ex: press conferences, community events,
charitable events Advertising: Presents a reason to the customer to
buy a product. Ex: Billboards, printed flyers, radio, cinema and
television adverts, web banners, web popups, bus stop benches,
magazines, newspapers, and the backs of event tickets and
supermarket receipts.
Slide 68
UI21 Business Plan - Marketing Sections Markets: Describe your
product or service, describe who is going to buy your products and
who are your potential customers. Quote facts that add credibility.
Up to 120 words. Marketing Strategy: Describe your competitive
advantage, average market prices for similar products or services.
Up to 120 words. Sales and promotions: How you plan to sell your
products or services. Up to 120 words.
