OUTLINE FOR A BUSINESS PLAN

OUTLINE FOR A BUSINESS PLAN I. II. Table of Contents Executive Summary The Executive Summary should be a stand-alone document that provides the reader with a summary of the proposal. This should give the reader sufficient motivation to read the entire proposal for details if they are interested at all in the project. Company Description This section should provide the reader with a specific picture of your objectives and address the following questions:  What is your business?  What are your products and services? Which products are doing great and which are not doing so well?  What are your markets?  What is your distinctive competency? (This should be related to a need in the marketplace) Market Analysis No business can exist without a market, so this section is critical to any business plan. Projections and claims regarding markets must be supported by factual data. The market analysis should address these questions: A. Industry  What is your industry?  How big is it now? In two years? In five years?  What are its characteristics?  Who are the customers? What are the demographics of your customers?  What are the historical trends and projections for the future? B. Target Markets  What market segments are you, or do you intend, to penetrate?  What regulations exist, if any? C. Competition  How many companies will compete with you and who are those companies? What are their strengths and weaknesses?  How do you compare to these companies? What are your advantages and disadvantages?  What is the market share of each competitor?  Will you be considered a major threat to these companies? If so, how do you anticipate that they will react? D. Customers  Have you identified and talked to prospective customers?  What were their reactions? III. IV. E. Strategic Marketing You want to analyze the specific niche of the market that you intend to carve out and address the following issues:  Marketing strategy  Sales appeal  Distribution  Promotion  Pricing  Product support and service F. Selling  How will you identify and target prospective customers?  What level of selling effort will be required? V. Technology What is the nature and status of your current technology? How can technology aid your endeavor? (I.e., computers, websites, new technology, etc.) VI. Operations The actual manner in which the business will operate needs to be flexible and dynamic in order to anticipate and react to an ever-changing environment.  How will you actually produce your product or service?  How much will be internally generated?  How much will be outsourced?  How will the transportation or distribution be accomplished?  How long will it take?  Do you have reliable vendors? Back-up vendors?  What are the costs of production and transportation at different volume levels? VII. Management  Who are your managers?  What experience and skills do they have?  How will they be compensated?  Attach their curriculum vitae. VIII. Personnel      How many people will you need? What skills will they have? How will you train them? How will they be compensated? Back-up plan if key employees leave IX. Required Financing  How much capital do you require now?  When will you require more? How much will you need? Why will you need it?  What will be the best means of raising the funds? X. Financial Data If you need to raise outside funds, you will need to have prepared financial proformas that reflect alternative scenarios, including  Income Statements  Balance Sheets  Statement of Cash Flows  Cash Budget (or Sources and Uses of Funds)  Manufacturing Budget and Shipping Plan  List of key assumptions used in the preparation of the proformas o Sales and market penetration o Credit terms to customers and collection patterns o Supplier terms and discounts XI. Risks and Opportunities Describe the potential problems and risks that exist for the company and how management can react to these threats.  Concentration of Buyers  Concentration of Suppliers  Retaining key employees  Decline in the economy  Fierce competition XII. Miscellaneous Information  What will the company be named and what will be its organizational form?  Are there any trademarks or patents to consider? XIII. Appendices  Detailed Financial Statements  Budgets  Breakeven Analysis  Timeline of target benchmarks  Résumés