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what is a business plan?
A business plan is a written document that describes the
future direction of a business. A business plan explains the business
concept, summarizes the objectives of the business, identifies the
resources that will be used by the business and tells the reader why the
business will succeed.
what's included in a business plan?
Most business plans include:
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an
Executive Summary which summarizes key points of the business plan in
one or two pages; |
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an
overview which introduces the reader to the business; |
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a
description of the products and services; |
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an
overview of the industry in which the business will compete;
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a
marketing strategy which summarizes the product, promotion, pricing, and
distribution strategies of the business; |
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a
description of the management and staff; |
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an
implementation plan; and |
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a
financial plan which includes pro-forma balance sheets, income
statements and cash flow statements. A balance sheet compares what your
business owns to what it owes. A cash flow statement compares how much
money will be coming in to how much you will be spending. An income
statement compares your revenues to your expenses to see if you are
going to make money. |
Business plans can vary in length from a few pages to over
100 pages. Although there are no hard and fast rules, we recommend that
business plans should be between 10 pages and 25 pages in length.
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suggested business
plan guidelines
I. Executive Summary
II. Detailed Business and Operating Plan
Company/Product Introduction
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Company history |
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High level overview of Company's products and services .
Mission statement |
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market assessment
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Industry overview including trends and opportunities |
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Legal/regulatory environment |
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Target customer market segments |
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Current and forecast sizes and growth rates for relevant
market segments |
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Customer needs addressed by Company's products, by
segment |
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Profile of customer purchase process and
purchase-decision criteria |
description of products,
services and technologies
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Review of current / proposed products and technology |
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R&D plan, milestones met and planned/ product evolution
plan |
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Proprietary aspects / unique competitive advantages of
product |
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Protection of intellectual property |
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Technology licensed |
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Joint development agreements / technology alliances |
marketing
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Marketing strategy |
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Distribution channels, sales force |
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Strategic alliance / distribution partners |
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Promotion / pricing / support |
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Key existing and / or prospective customers . Projected
market share |
competitive analysis
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Profile of products, strategy and resources of each major
competitor |
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Strengths and weaknesses of each major competitor |
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Barriers to entry for new competitors |
operating / manufacturing
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Manufacturing / order-fulfillment strategy |
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Facilities and equipment - current and planned |
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Key suppliers and subcontractors and alternative sources |
corporate organization /
human resources
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Organization charts |
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Number of staff by function |
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Staffing plan and rationale for growth by department .
Compensation / remuneration plan |
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Key employment agreements |
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Corporate governance, board of directors, advisers |
finance
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Historical and five-year projected balance sheet, income
statement and Cash flows |
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Monthly cash flows for next year |
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Appropriate commentary, notes and assumptions |
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Description of current capitalization (including options
and warrants), investors / shareholders, creditors / bank lines |
investment opportunity
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Present and future funds sought and proposed uses |
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Preferred investment vehicle (e.g. common or preferred
equity, convertible debt) |
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Proposed valuation, rationale and comparables (if
available) |
summary of
risks
Key risks associated with each category above,
with company's conting plan to mitigate each
III. appendices.
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Management resumes, biographies, prior ventures .
References from customers, strategic partners |
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Product literature if available |
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Detailed financial schedules and assumptions |
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Professional consultants: auditors, legal counsel, etc. .
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Outstanding legal or
regulatory disputes, issues |
why is a business plan important?
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the
process of preparing a business plan will force you to think about your
business, research some options, recognize opportunities and risks, and
test some of your assumptions; |
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a
business plan will help you identify the cash requirements of your
business; |
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a
business plan can be used to raise funding from banks and from
investors; |
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a
business plan can be used to tell employees, investors and others about
your plans and strategies; and |
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a
business plan provides a benchmark against which to compare the progress
and performance of your business. |
It is a good idea for all businesses to prepare and
regularly update their business plans.
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we can help...
Since 1996, we have
prepared numerous Business Plans covering a wide range of situations,
business conditions and subjects. These business plans were written
for a variety of industries including manufacturers, wholesalers,
retailers, business service providers, construction companies, special
trade contractors, technology companies and others...
Many Business plans
were for startups while others were for established businesses seeking
financing and/or alliances. Our vast experience as a corporate officer
for over twenty years for a major US public company and as an
independent management consultant since 1996 can be put to good use
to assist you with your needs.
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Call us today for a complimentary consultation. 416 229
0520 Ext 23 |
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"Many are the plans in a man's
heart, but it is the Lord's purpose that prevails."
Proverbs 19:21 |
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