What is a Business Plan?

• A business plan is a written

document that describes your
business. It covers objectives,
strategies, sales, marketing and
financial forecasts.
Why write a business plan?
• Writing a business plan helps you think about what you are doing
• The plan sets out your strategy and action plan for the next one to three
years, or sometimes longer.
• As part of the process you set concrete objectives and plan how you will
achieve them.
• Writing a business plan helps you focus and develop your ideas. Priorities
are identified. Non-priorities are dropped, saving precious time.
• Putting the plan in writing makes it easier to spot any gaps where you have
more to do.
• Once written, the plan is a benchmark for the performance of the business.
Elements of a Business Plan
• Executive Summary
• Business and Industry Overview
• Marketing Plan
• Organizational Structure
• Operating Plan
• Financial Plan
Executive Summary
• The executive summary goes near the beginning
of the plan but is written last. It provides a short,
concise, and optimistic overview of your
business that captures the reader's attention and
creates a need to learn more. The executive
summary should be no more than 2 pages long,
with brief summaries of other sections of the
plan.
Elements of the Executive Summary
• Describe your vision and mission. (1st paragraph)
• Introduce your company and the management and ownership.
(2nd paragraph)
• Describe your main product and service offerings. (3rd
paragraph)
• Briefly describe the customer base you will be targeting and how
your business will serve those customers. ( 4th paragraph)
• Summarize the competition and how you will get market share
(i.e., what is your competitive advantage?) ( 5th paragraph)
• Briefly outline your financial projections for the first few years of
operation. (6th paragraph)
• Describe your start- up financing requirements. (7th paragraph)
Business and Industry Overview
• This section is an overview of the industry and how your
business will compete in the sector.
• Describe the overall nature of the industry. (1st paragraph)
• Include trends and demographics, and economic, cultural, and
governmental influences. (2nd paragraph)
• Describe your business and how it fits into the industry. (3rd
paragraph)
• Describe the existing competition. (4th paragraph)
• Describe what area(s) of the market you will target and what
unique, improved or lower cost services you will offer. (5th
paragraph)
Marketing Plan

• Marketing Planning designing activities

relating to marketing objectives and the
changing marketing environment.
• Marketing plan a written document that
acts as a guidebook of marketing activities
for the marketing manager.
Elements of Marketing Plan
• Business Mission Statement
• SWOT Analysis
• Objectives
• Marketing Strategies
o Segmentation
o Targeting
o Positioning
o Marketing Mix ( Product , Place, Promotion and Price)
• Implementation, Evaluation and Control
 Organizational Structure
• An organizational structure is a system that outlines how
certain activities are directed in order to achieve the goals
of an organization. These activities can include rules, roles,
and responsibilities.

• The organizational structure also determines how

information flows between levels within the company. For
example, in a centralized structure, decisions flow from the
top down, while in a decentralized structure, decision-
making power is distributed among various levels of the
organization.

• Having an organizational structure in place allows

companies to remain efficient and focused.
Operating Plan
• This is one of the most important elements in the development
plan. Scheduling includes all of the key work elements as well as
the stages the product must pass through before customer
delivery. It should also be tied to the development budget so that
expenses can be tracked.

• But its main purpose is to establish time frames for completion of

all work assignments and juxtapose them within the stages
through which the product must pass.

• When producing the schedule, provide a column for each

procedural task, how long it takes, start date and stop date. If you
want to provide a number for each task, include a column in the
schedule for the task number.
Financial Plan
• Three key financial statements must be presented: a balance sheet, an income statement,
and a cash-flow statement. These statements typically cover a one-year period. Be sure
you state any assumptions and projections made when calculating the figures.
• Determine the stages at which your business will require external financing and identify
the expected financing sources (both debt and equity sources). Also, clearly show what
return on investment these sources will achieve by investing in your business. The final
item to include is a break-even analysis. This analysis should show what level of sales will
be required to cover all costs.
• If the work is done well, the financial statements should represent the actual financial
achievements expected from your business plan. They also provide a standard by which to
measure the actual results of operating your business. They are a very valuable tool to help
you manage and control your business
Course Outcome Project
Output
• Form a group with 4-6 members each.
• Identify what type of business you want to start with (can be product
or service)
• Should be innovative (not existing yet)
• Create an executive summary for your business
• Title page should include your business name and logo
Elements of the Executive Summary
• Describe your business name and logo. (1st paragraph)
• Describe your vision and mission. (2nd paragraph)
• Introduce your company and the management and ownership
and why did you choose that type of ownership. (3rd paragraph)
 Sole proprietorship
 Partnership
 Corporation
• Describe your main product and service offerings. (4th
paragraph)
 Include a menu or list of products and services offered
 Include price and description of products and services
Elements of the Executive Summary
• Briefly describe the customer base you will be targeting and how your business will serve
those customers. (5th paragraph)
 Demographics (age, gender, monthly income, location, etc)
• Summarize the competition and how you will get market share (6 th paragraph)
 Competitors (direct and indirect)
 Competitive advantage
• Briefly outline your financial projections for the first few years of operation. (7 th paragraph)
 Monthly sales
 Product quantities
 Annual sales
 Projection for 3 years
• Describe your start- up financing requirements. (8 th paragraph)
 Capital requirements (how much money do you need to start your business)
 Outline of capital needs with price (machineries, equipment, products, rent, personnel salary (for first
6 months))