Business: Business Plan Template For Developing An Effective Business Plan

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Plan
Business
Business Plan Template … for developing an effective Business Plan

1
Copyright (c) 2010 changezone.com. All rights reserved.
Business Plan Template
Title Page
[Insert Company Name or Logo]
2010 Business Strategy Plan
[Insert Completion Date]
[For external Use (Insert Name and address of business and

principal(s), Nature of business]
2
Table of Contents
Title Page .................................................................................................................................... 2
Executive Summary ..................................................................................................................... 4
Description of the business ......................................................................................................... 5
Strategic Plan .............................................................................................................................. 6
1- Segmentation (Based on Market research) ................................................................... 6
1.1 Segment identification ........................................................................................... 6
1.2 Segment Analysis: .................................................................................................... 6
2- Competition Analysis ..................................................................................................... 8
3- Environment analysis (Find opportunities and threats) ............................................ 9
3.1 Five Forces: (Micro environment analysis)............................................................... 9
3.2 PESTEL: (Macro environment analysis) Factors affected this segment ....................... 9
4- SWOT Analysis ............................................................................................................. 10
5- Balanced scorecard (Business unit Strategy Map) .......................................................... 11
• Strategic Theme ......................................................................................................... 11
• Reporting plan ........................................................................................................... 12
• Risk plan .................................................................................................................... 12
Marketing Plan .......................................................................................................................... 13
Brand positioning .................................................................................................................. 13
Marketing Mix: ...................................................................................................................... 13
Organizational and Human Resources Plan................................................................................ 18
Operational Plan ....................................................................................................................... 19
Information and Communication Technology Plan (ICT) ............................................................ 22
Knowledge Management Plan ................................................................................................... 25
Financial Plan ............................................................................................................................ 27
Appendix................................................................................................................................... 30
3
Executive Summary
Insert:
• An overview (the concept) of the business.
• What are the strategic objectives & key programs for 2010?.
• What are your marketing plan
• Management team and their experience
• Financial figures
• Generally it is summarizing every section in the business paln with the key points and
factors.

Description of the business
1- Mission and Vision
2- Overview about products and service
3- Size of the business
4- Location of the business
5- Number of employees
6- Equipments (important for external use for fund)

Strategic Plan
1- Segmentation (Based on Market research)
1.1 Segment identification
Segment Id Description Service/Product
Segment A Over weighted Fitness programs and exercises

Segment B Professional women Fitness programs, classes, Yoga, Spa, water area
Segment C kids Playing area, classes, self defense classes, outdoor
activities
Segment D Moms & wife’s Fitness programs, dietitian, exercises, lounge
area.
Segment E Disables Programs designed according their needs
1.2 Segment Analysis:
Description
Segment
Segment A
Product/service description Special Fitness programs and exercises designed for overweighed
people. Dietitian.
Segment Characteristics/description
Criteria description
Age Over 18
Income rate Above 150 JD disposable income
Gender Male and female
Occupation Students/employees
Life style Work from 9-5 pm
attitude Looking for more healthy life style, and better shape
Residence and work location West and east Amman

Segment Size, Demands and weight
o Research shows that the number of over weighted people in Amman is

increasing due to modern life style by .03% yearly
o 60% of over weighted people declare their need to have special programs to
loss weight
o The perceived risk to make stomach or special Surgery to reduce fat/weight
is increasing. Over weighted people is looking for exercises as an safe and
better option
See Appendix
endix (A) for resources and research results
o Optimistic and unoptimistic evaluation of the population of participant who

will attend our fitness club.
Population Optimistic-5% Unoptimistic

Unoptimistic-2% Most likely-4.5%
Over weighted
people 30,000 1500 600 1350
demand
6000 5184
5000 4320
3600
4000 3000
2500
3000
1728 2073.6
2000 1000 1200 1440
1000
0 unoptimistic starting
2006 2007 2008 2009
2010
time
It is very important to mention resource for the analysis of fitness market
Forecasting the future demand within five years based on current level at
growth rate 20%
Copyright (c) 2010

20 changezone.com. All rights reserved.
Segment requirements (strategically important):
• Weight scale (H, M, L)
This segment is looking for programs to help them: regain normal weight, improve their fitness and
to have better and normal body shape
Requirement weight
• Machines designed specially for over weighted (basic) H
• Programs designed specially for them (basic) H
• Dietitian to provide consulting (basic) H
• Accessibility (easy to reach the location, easy to move and use facilities) (Basic) H
• Effectiveness of follow up (performance) H
• Influential coach and environment (performance) M
• Supportive groups (WOW) M
• psychologist and therapy program (WOW) M
2- Competition Analysis
(Comparison of the service(s)/product offer by each competitor, comparison criteria based on

customer needs and wants)
Competitor Fitness Club Us (Big Winner)
Requirements
Program design Conventional training programs Training programs are designed based
on scientific research
Coach competencies Threshold coaching skills Specialized in treating over weighted
people
Diet consultation Very good dietitian Our diet programs is coordinated with
training programs
Location Excellent Good

3- Environment analysis (Find opportunities and threats)
3.1 Five Forces: (Micro environment analysis)
Bargaining power of suppliers Low because of the number of suppliers
Bargaining power of customers No effect

New entries No barriers
Substitutes Surgery operations, special drugs, other fitness gyms
Direct competition Fitness Club (discussed earlier)
3.2 PESTEL: (Macro environment analysis) Factors affected this segment

Factor (key driver) Economical
Changes Inflation rate
Impact Inflation rate leads to decrease in the level of disposable income. Demand
will decrease.
Classification (threat,
opportunity) Threat
Weight
H
Factor (key driver) Socio cultural

Changes Increase awareness to have more healthy life style
Impact High Demand.
Classification (threat,
opportunity) Opportunity
Weight
H
Factor (key driver) Technology

Changes Cost of developing internet website and other SW applications is decreasing
Impact ICT applications can be used to offer programs online. Using SMS technology
to communicate with customers. Using ICT for e-promotion, etc…
Classification (threat, Opportunity
opportunity)
Weight H

4- SWOT Analysis
• Opportunities/threat (derived from environmental, competitor analysis)
ID Opportunity/threat Classification Probability Impact Weight

(1-5)
1 Awareness is increasing for special fitness O H H 5
programs to loss weight
2 Using technology to improve service O H H 5
3 New buildings in very strategic positions O H M 3
4 Location T M M 2
5 Decrease in disposable income might affect demand T H H 1
Related
Capability Assessment to ID W/S
Competencies , resources, knowledge, etc.
Payment process ( Enhance payment process to provide installments facility) 5 W1
Promotion process ( Very good promotion and marketing competencies) 1 S1
Registration online, e-CRM applications, and Forum: 2 W2
• Registration online will facilitate the process of registration
• E-CRM to tide the relationship with customer, report them with their progress, new steps and future
plans, diet consultation, etc…
• Forum: to build relationships with other groups , sharing successes and have encouragement
Strategy derived
S1 – O1
intensive promotion campaign
W1-T2
provide payment by installment
W2-O2
develop applications for e-CRM, forums, e-registration
10
5- Balanced scorecard (Business unit Strategy Map)
• Strategic Theme
Theme Payment Method Theme Owner xxxx

Perspective Objective Target Measurement Initiatives
1000 Income statement Attract new customers, and
Finance Increase revenue JD/month /Month increase retention rate from
existing customers
20%/month Cross selling Encourage customers by
Customer Increase customer retention report/month special offers, and payment
methods
Internal processes - Enhance payment method

(include installments facility)
• CRM process
• Accounting Process
• Marketing process
Awareness sessions about this

Learning & Growth method. Train sales and
receptionist
Theme Promotion Theme Owner xxxx

1000 JD /Month Attract new customers, and
Finance Increase revenue increase retention rate from
existing customers
20% /month Encourage customers by
Customer Increase customer retention special offers, and payment
methods
Internal processes -Use new promotion channels
Learning & Growth -Train marketing employee

about social media
promotion
Theme ICT applications Theme Owner xxxx

1000 JD /Month Attract new customers, and
Finance Increase revenue increase retention rate from
11

existing customers
20% /month Encourage customers by
Customer Increase customer retention special offers, and payment
methods
Internal processes Enhance the CRM with

customers, build forums,
ability to registration and
access file online
Learning & Growth -Train CRM employee to use

new applications and to
follow-up forums
• Reporting plan
Theme
Report Frequency Responsible party of Distribution list notes

distributing report
• Risk plan
Theme
Description of risk probability impact Actions owner
12

Marketing Plan
Brand positioning
Differentiation/ competitive advantage / unique value proposition
• Focus on loss weight and shaping programs by combining machines and classes activities for
overweighed participants as individuals and in groups
• Social events
• Diet consulting and follow up by expert dietitian
• Provide ready made healthy food, full board breakfast, lunch, and dinner
• Provide good payment facilitation , paying by installments
• No energy cost for transportation according to the location
Positioning Statement
[Business name] is better for [targeted segment] because [ ]
Example: (“Big Winner” fitness center is better for over weighted people because it
offers quality weight loss and shaping services with reasonable prices and payments
facilitation for participants)
Marketing Mix:
(Product, Pricing, place, promotion (communication strategy plan))
1. Product Mix
• Aerobics and other classes Training
• Shaping machines
• Bodybuilding
• Specialized machine
• Specialized techniques and exercises (for individual and groups)
• Special and tailored diet program for each customer
• Diet and healthy food
• Video tapes and discs, books sports wear and nutrition products
• Social Club
13
Analyzing Products: (Product 1: Aerobics Training)
Physical Features The mechanics of aerobic and classes, exercise require that oxygen be
brought in by the lungs, and then transferred to the blood vessels. Through
routine aerobic activity, the body becomes more efficient at processing
oxygen.
Advantages
• Tones muscles, Improved balance and posture
• Improves psychological disposition and reduces stress levels
• Strengthens heart and decreases blood pressure
• Burn fats and loss calories
Instructor Ahmad A. specialized in classes and aerobic techniques,

graduated from Jordan university, 2003 won aerobic dancing
champion, he attended many dietitian workshops (see appendix
for CV)
Services Sauna and Jacuzzi for relaxing after the class , cafeteria for healthy
and diet meals
Product 4: Social Club:
• An opened cafeteria with peaceful view , nice music and

Physical Features qualified catering staff provides a highly hygienic place for
social gathering with healthy and fresh food and drinks.
• Provides a nice place for social gathering for gym

members.
• Serves members with healthy foods and drinks which match

Advantages with their nutrition plans.
• Helps members to improve socially and gain new friends

with same experiences and interests.
• Healthy fresh foods and drinks.

Services • Peaceful place to relax.
• Small library with helpful materials.
2. Price
Because we target overweighed people, we try to design the special price and session time for
them, because they need to continue practicing for long duration 6 to 8 months to gain the
results they want.
14
• Month card: 150 / Month (shaping machines , classes and bodybuilding), dietitian
consulting and follow-up (over two installments)
• 4 months card : 120 Month (shaping machines , classes and bodybuilding), dietitian
consulting and follow-up (over three installments)
• Silver card (6 months): 85 JD (shaping machines , classes and bodybuilding), dietitian
consulting and follow-up (over four installments)- one free healthy meal
• Golden Card 1 year : 960 JD (shaping machines , classes and bodybuilding), dietitian
consulting and follow-up (over five installments), free three healthy meals
3. Place:
Our fitness center is located in Amman the capital, very close from Jordan University
campus. About the location around the campus, the idea is the following reasons:
• Enough customers. There are enough clients in the school campus; there are
approximate 50,000 students in this university and the other universities around
(PSCUT and the German University) and this number is increasing 5% each year.
It gives us the chance to attract more and more customers in the future. There
are also very good citizen in this location. They can also be our customers if we
are near to them. Many professional centers are located their so we can attract
the employees. The region is green and we have very nice view, this will
encourage customers to come on daily or weekly bases
• Cheaper rent. The land rent around the campus is 1/5 to 1/10 of the price in
the city center
• No competition. There is no professional and specialized fitness center around
the campus now. If the students will choose a professional and specialized
fitness center to do exercise around the campus, we are the only choice for
them.
• The place is very close from main transportation and main areas, big parking is
available for participants
15
4. Promotion Mix (Marketing Communication Strategy Plan)
4.1 Marketing Program
Project Metrics & KPIs Target Cost

Redesign Website New visitors/Month 10,000/month JD 2500
# Web Leads 250/month
Average Time on Site 2.5 Minutes/Visit
Social media (face book) # of fans
E-mail Marketing System
Direct Mail Campaign
Leaflets and brochures
4.2 Marketing Communications Schedule (Schedule your initiatives)
Promotion campaigns
Campaign OBJECTIVES Starting date Budget Promotion mix() Measures

beginning renewing 01/01/2010 300 Emails, face book, leaflet on No. of renewals at the
of January membership for the registration office, website beginning of the semester
existing customers
Awareness build awareness 15/12/2090 250 Leaflets and sales promotions, No. of new customers, No.
campaign about fitness awareness displays of calls received
center and its
advantages
4.3 Sales plan
Here are some guidelines help to make an initial sales forecast:
• Customers: how many customers and potential customers are expected to buy,
and how much might they buy. Such information can be collected by: interview
with a sample of customers, and advertisement to obtain customer reaction.
• Seasonal factors: sales might be high or low in certain periods of the year.
• Desired income: profit margin can be predicted – depending on market
research, study for previous years, expert opinion-. This profit will be an
objective, and then sales figures can be determined to achieve this objective.
• Sales projections should be believable and realistic. Useful knowledge can be
gathered by researching old company accounts, trade magazines, consultants,
etc…
16
Sales forecast can be made for three to five years; the first two years of the sales forecast
should be made on a monthly basis.
Product /
Service
Year 2010 Year 2011
Jan Feb Mar Apr … Dec Jan Feb Mar Apr … Dec
Units
Price/unit
Sales
Cash inflow
17

Organizational and Human Resources Plan
1- Legal Form of ownership
2- Identification of partners or principal shareholders, authority of principals
3- Management-team background
4- Organizational Chart, with clarification for roles , responsibilities and

Objectives for organizations’ members
18
Operational Plan
1- Create/ improve processes (referring to SWOT and strategy map)
Business Objective Processes Theme impact weight
Increase market Share Payment by installment 2 H 1
(customer level) sub-process
Enhance Promotion process 1 M 2
2- Business Process analysis
Process name Payment by installment Sub-Process of Payment process
Process Objective
• This sub process aims to include installment facility to improve payment
process
The reason to • To eliminate the threat of losing demand due to the decrease in
create this disposable income.
process
• To enhance our market share
The value
provided by this • Installment makes the payment for our services more suitable and
process (to the affordable, which is an important need in the current economical situation
end customer)
Fit to strategic • Its very important to our strategic position to build long-term relationship
position with Overweighed segment, pay by installment will create financial ties
with members of the segments.
Main Value chain analysis

• (where does the process fit in the value chain)
19
HR IT Marketing
Support &
management
Accounting Handling Payment …..
processes
$
register trainee and Designing the right Train the
information collection program for trainee trainee
Core
according to
Processes
the program
Process • CRM manager

Owner
Process • Customer
actors(intern • Registration officer
al/external)
• CRM officer
• Accountant
Information
stream: • CRM should receive customer information from registration officer
• Payment information sent by CRM officer to accountant
Process • This process starts after registration officer take the registration
triggers and information needed from the customer
controls
• The number and the amount of Installments is fixed and identified by
accounting manager
Risk • Installments delays: (Financial agreement document should be signed

assessment as a part of the process)
KPIs
KPI to be measured Target How to How often
measure
Number of customer 10 No. of Monthly
registered by installments registrations
(lead)
No. of failed
Number of delayed 0 payments Monthly
payments (lead)
Customer retention rate 20% No. of retained Quarterly

(lag) customer
Cash flow
500 JD statement Monthly
KPI (for cash flow)
20
3- Business Process Modeling
21
Information and Communication Technology Plan (ICT)
4- ICT objectives
Business Objective IT application (strategic impact weight

application)
Increase Customer E-CRM H 1

retention
(customer level)
Forums H 2
E-registration M 3
5- Value chain analysis
HR IT Marketing ….
Accounting Handling Payment CRM ….
$
register trainee and Designing the right Train the Follow-up
$
information collection program for trainee trainee trainee and
according to coaching them
the program
22
• Operational Applications
Application Accessed By Status

1- Registration CRM, Operating
system Accounting, IT
2- Customer CRM, Operating
Financial records Accounting , IT
3- SMS reminder CRM, Under-
system IT Construction
23
• Needed Application
Application Accessed By priority Acquisition

1- Portal WWW 1 Internal development
Website
2- E-CRM CRM, 2 Internal development
Customer , IT
3- Forums CRM, 3 Internal development
Customer , IT
4-E- CRM, 4 Internal development
registartion Customer ,
accounting,
IT
6- IT infrastructure
Component Specifications
Wireless LAN
Server
Operating System Ex: Windows/Linux/….
Firewall
Data-Base Ex: Oracle/MySQL/…
Internet service Provider
System development
Use cases and SRS
24
Knowledge Management Plan
1- Set KM objectives to be achieved, What Organization Should Know
-Objective: Increase revenue

-Objective: Increase customer
retention FINANCIAL -measure: revenue/month
FINANCIAL
“To succeed Objectives Measures Targets Initiatives
-measure: customer retention financially, how - Target: 5%
should we
appear to our
- Target: 30% shareholders?” - Improve customer retention
- Achieve program promised

results
CUSTOMER TRANSFORMATION (INTERNAL BUSINESS PROCESSES)
CUSTOMER
“To achieve our Objectives Measures Targets Initiatives “To satisfy our Objectives Measures Targets Initiatives
vision, how Vision shareholders
should we Vision
& and customers,
appear to our &
Strategy what business
customers?” Strategy
processes must
we excel at?”
Competencies (INNOVATION AND LEARNING) -Objective: improve training

Competencies (INNOVATION AND LEARNING)
“To achieve our Objectives Measures Targets Initiatives program process
vision, how will
we sustain our
ability to
change and
improve?”
Core Knowledge Training program

Details
Advanced Knowledge Advanced tactics to $
make results
innovation Knowledge
Improve training Performance Sales and

program process production and customer
Critical Processes service delivery support
25
(Process, problem, Artifacts Skills Person Processes linked with
activities, events responsible
etc..)
Training program Customer Machines Coach
Info
Program Info Special Training
techniques managers
Special
Techniques
Doc
2- Gap analysis (What Knowledge to be created)
By capturing and assessing available knowledge
(Process, problem, Artifacts Skills Best Lessons Person Processes

activities, events etc..) Practice learned responsible linked with
Training program Customer Machines X X Coach
Info
Program Special Training
Info techniques managers
X
Process, activity, etc Knowledge to be Tools (how to be Person responsible

created created)
Training program Special Techniques Meeting sessions, Training managers
Doc brainstorming,
Knowledge Sharing,
Authoring tools
3- Share knowledge
Knowledge assets to Processes Tools (how to be Person responsible

be shared shared)
Special Techniques Training program Using Intranet Training managers
Doc software, knowledge
portals, etc
26
Financial Plan
Develop the main financial sheets, (operating Budgets, income statement, cash flow,
balance sheet, sources and application of funds).
Projected expenses and sales can be based on forecasting techniques (survey of buyers,
expert opinion, industry benchmark, personal experience, consultants, time series
“standards over years” to project sales).
1- Operating Budgets: projected operating costs (the fixed (overhead) cost that occurred
regardless the volume of sales)
Operating Budget for months/year (JD 000s)
Projected Expenses January February March Apr …

Salaries
Rent
Advertising
Selling expenses
Insurance
Office expenses
Total expenses
2- Income statement: projected net profit calculated from projected revenue minus
projected costs and expenses, usually developed after budgeting, to include the
operating expenses from the budget.
Income Statement, for months/year (JD 000s)
January February March

Sales (revenue)
Less: (cost of goods sold)
Gross profit
Operating expenses
Salaries
Rent
Advertising
Selling expenses
Insurance
Depreciation
Office expenses
Total expenses
Net Profit (loss)
Cost of goods sold: (variable cost to produce one unit times the number of units sold)
27
3- Cash Flow: cash flow is not the same as profit. It results from the difference between
actual cash receipts and cash payments. Cash flows only when actual payments are
received or made.
It is: “Projected cash available calculated from projected cash accumulations minus
projected cash disbursement”
Cash Flow for months/year (JD 000s)
January February March

Receipts Sales
Disbursement
Cost of goods sold
Salaries
Rent
Advertising
Selling expenses
Insurance
Taxes
Office expenses
Total Disbursement
Cash Flow (a)
Beginning balance (b) given * **
Ending balance *(a-b) **
Negative cash flow: If disbursement is greater than receipts in any time period, fund should be
borrowed or have cash in bank account to cover the higher disbursement. Begging balance: the
founders put **** JD each for working capital.
4- Balance Sheet : summarize the projected assets, liabilities, and net worth of the new
venture
Balance Sheet end of first year (JD 000s)
Assets
Current Assets
Cash
Accounts receivable
Inventory
Total Current assets
Fixed Assets
Equipment
Less depreciation
Total Fixed Assets
Total Assets
Liabilities and owners’ Equity
Current Liabilities
Accounts payable
Total liabilities
Owners’ equity
Ahmad
Maha
Retained Earnings
Total owners’ equity
Total liabilities and owners’ equity
28
1- Sources and application of funds
Source of Fund
Personal Funds of founder
Net income(loss) from operations
Total Funds Provided
Application of funds
Purchase of equipment
Inventory
Total funds expended
Net increase in working capital
29
Appendix
30

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Business Plan Template … for developing an effective Business Plan

[Insert Company Name or Logo]

2010 Business Strategy Plan

[Insert Completion Date]

[For external Use (Insert Name and address of business and

• An overview (the concept) of the business.

• What are your marketing plan

• Management team and their experience

Copyright (c) 2010 changezone.com. All rights reserved.

Description of the business

1- Mission and Vision

2- Overview about products and service

3- Size of the business

4- Location of the business

6- Equipments (important for external use for fund)

Copyright (c) 2010 changezone.com. All rights reserved.

1- Segmentation (Based on Market research)

1.1 Segment identification

Segment Id Description Service/Product

Segment A Over weighted Fitness programs and exercises

1.2 Segment Analysis:

Copyright (c) 2010 changezone.com. All rights reserved.

Segment Size, Demands and weight

o Research shows that the number of over weighted people in Amman is

o Optimistic and unoptimistic evaluation of the population of participant who

Population Optimistic-5% Unoptimistic

It is very important to mention resource for the analysis of fitness market

Copyright (c) 2010

Segment requirements (strategically important):

• Weight scale (H, M, L)

• Machines designed specially for over weighted (basic) H

• Programs designed specially for them (basic) H

• Dietitian to provide consulting (basic) H

• Effectiveness of follow up (performance) H

• Influential coach and environment (performance) M

• Supportive groups (WOW) M

• psychologist and therapy program (WOW) M

(Comparison of the service(s)/product offer by each competitor, comparison criteria based on

Competitor Fitness Club Us (Big Winner)

Copyright (c) 2010 changezone.com. All rights reserved.

3- Environment analysis (Find opportunities and threats)

3.1 Five Forces: (Micro environment analysis)

Bargaining power of suppliers Low because of the number of suppliers

Bargaining power of customers No effect

3.2 PESTEL: (Macro environment analysis) Factors affected this segment

Factor (key driver) Socio cultural

Factor (key driver) Technology

Copyright (c) 2010 changezone.com. All rights reserved.

• Opportunities/threat (derived from environmental, competitor analysis)

ID Opportunity/threat Classification Probability Impact Weight

Promotion process ( Very good promotion and marketing competencies) 1 S1

Registration online, e-CRM applications, and Forum: 2 W2

• Registration online will facilitate the process of registration

5- Balanced scorecard (Business unit Strategy Map)

Theme Payment Method Theme Owner xxxx

Internal processes - Enhance payment method

Awareness sessions about this

Theme Promotion Theme Owner xxxx

Internal processes -Use new promotion channels

Learning & Growth -Train marketing employee

Theme ICT applications Theme Owner xxxx

Copyright (c) 2010 changezone.com. All rights reserved.