Download as ppt, pdf, or txt
Download as ppt, pdf, or txt
You are on page 1of 18

BUSINESS PLAN

Uses of a Business Plan


Equity funding Bank finance Alliances Recruitment Clarify the business Others

Kinds of Business Plans


Summary Plan Executive summary Full Business Plan Operational Business Plan The oral presentation

Steps in Writing a Business Plan


Define purpose Collect Information Put it down The rough draft. Financial analysis Finishing Review

Data Required
Company details
Documents relating to formation Shareholding details Permits and registrations

Management
Organization chart Details of key employees Consultants and advisors Compensation and other employee agreements Market statistics from secondary sources Reports on trends, etc Competitor data Customer surveys

Industry and Competitors

Data Required
Operations
Product specifications Contracts and purchase orders for raw materials Competitive advantages Details of Intellectual Property (Patent, license, and trademarks) Regulatory approvals Industry standards as per regulations Plant layout and operations plan Research and development plans

Marketing and Sales


Marketing plan Advance orders, if any Marketing materials

Financial Information
Data on fixed and variable costs to be incurred Financial forecasts

Key Sections of a Business Plan


Executive summary The company The management team The industry and the market Operations The marketing plan Financial plan Risks and contingencies Appendices

Executive Summary
The executive summary is probably the most important section of the business plan. It is basically the whole business plan condensed into a few pages The main objective of the executive summary is to entice the reader to go through the entire plan.

The Company
History Current Status Future

The Management Team


Technical and professional qualifications Quality of work experience Experience in the relevant sector Reputation in the business community Evidence of moral integrity Financial capacity Networking with other vital people in the industry

The Industry and the market


An industry is a collection of sellers A market is a collection of buyers
Concentrate on the relevant segments

Competition

Operations
Technology Raw material strategy Production planning Quality HR policy

Marketing
Target Segments Branding Product Packaging Pricing Distribution Promotion

Finance
Funds sought Projected financial statements Costing details Break even and payback analysis

Risks and Contingencies


Identify major threats and risks Outline strategies for countering them

Appendices
Copy of documents pertaining to incorporation or formalisation of partnership. CVs of the entrepreneur/s and of key employees Copies of various permits or permissions granted. Copies of papers pertaining to sale or lease of land for the business Copies of documentation of proprietary intellectual property Graphical representation of schedule including milestones and dates Photographs of location Factory or plant layout Graphical representation of production process

Appendices
Findings of market survey conducted Photograph of product or prototype Storyboards or mock-ups of advertisements Projected balance sheets Projected profit and loss accounts Projected cash flow statements Sensitivity analysis of P&L a/c Break even analysis Financial ratios

You might also like