Essentials of Business Plan

The (very) Basics of a Business Plan

§Executive Summary
§Company Overview
§Market Environment
§Marketing and Sales Strategy
§Operations
§Financial Plan

Your Business Plan Will...

§Discuss a particular market opportunity.
§Examine the markets that you will compete in, and explain who your customers will be.
§Describe the products or services that your company will provide.
§Your competition, and how you will defend against it.
§The operation that you will put in place in your company.
§The management team that will implement the plan.
§The size and profitability of your company.

Executive Summary

§The written version of the “60 second pitch.”
§Many people who read your plan, will only read your Executive Summary...
...and then they may read your financials.
§NOT an introduction, but a short version of the whole plan.

Company Overview

§Explanation of history, structure, and organization of your company.
§Strategic direction
Mission statement.
Goals and objectives.
Values and vision.
§People
Relevant skills and expertise of management team.
Directors.
Relationships with experts in the field.

Market Environment

§All factors of the market that are outside your direct control:
Market structure
Market trends
Competition
Opportunities/Threats

Marketing and Sales Strategy

§Products or services offered.
§Follow-on products.
§Intellectual property or other defendable positions.
§Market research.
§Marketing plan.
Brand strategy.
Distribution strategy.
Product strategy.
Pricing strategy.
Promotion.

Operations

§Practical details required to meet the plan.
§Facilities.
§Manufacturing or out-sourcing.
§Personnel.
§Varies widely depending on type of business.

Financial Plan

§Three key reports, in a five-year plan:
Income statement.
Balance sheet.
Statement of cash flows.