How to write a business plan?
Guanghua School of Management
What is a business plan?
A document that describes a new venture’s
internal and external environment, and its
– Marketing plan;
– Financial plan;
– Manufacturing plan;
– Human resource plan;
Who writes a business plan?
The entrepreneur (yourself).
Excellent Good Average Poor
Accounting and tax
Who will read a business plan?
- What I am going to do step by step?
- Is this product/service worth buying?
- Is this business worth investing?
Outline of a business plan
Environment & industry analysis
Name and address of the new venture
Name, phone, fax, email, website, and mail
address of the entrepreneur
Summary of the business
Last step in writing a plan
Motivate investor’s interest
– Business description
– All useful data to support this business idea
Environment and industry analysis
1. Major trends in the economic, technological, legal, and public policy
2. Sales per year in the target industry (5-year data);
3. The growth potential of the target industry;
4. No. of new ventures in the target industry in the past 3 years;
5. New products in the target industry;
6. Who are your direct competitors?
7. How to compete with your competitors?
8. How are your competitors doing in terms of performance?
9. What are the (dis)advantages of your competitors?
10. How about the future trend in your target niche market?
11. How about your potential customers?
12. Any differences between your customers and your rivals’?
Why do you want to enter this industry?
Why do you think you will succeed?
What are your products and services?
Where is your company located?
How to find your office building?
Is the location effective for your business?
What kind of equipments do you need? Buy or rent?
What kind of experiences do you have?
Marketing plan (4Ps)
– Target customers
– Organizational form (China-specific)
– Ownership structure
– Organizational structure
– Top management team and compensation
What are the potential risks?
If happen, what kind of negative outcomes?
How to cope with these risks?
Sales and expenses forecasting in the first
– For the first year, use monthly data;
Income statement, balance sheet