Writing a Winning Business Plan
A business plan is a strategy for creating, launching and managing a new venture. It answers the questions of What, Why, Who, When and Where. Most important, it answers the question of How.
Success begins with a great opportunity. A viable opportunity exists when:
You have intimate knowledge of the industry (products, services, competitors, customers’ needs, missing pieces) You meet an important need or want that currently is not being met in the market You can execute a viable business in the industry (robust market, healthy margins, early cash flow, high profit potential, a strong team, customer ready to buy)
Components of the Plan
Cover Page Table of Contents Executive Summary Business Description Industry Analysis Management Plan Marketing Plan Financial Plan Implementation Plan
Cover Page
Name of new business Name of founders Contact information Date of plan
Table of Contents
Includes major sections and page numbers Includes sub-sections and page numbers
Executive Summary
1 to 3 pages in length Brief description of business and summary of competitive advantage Brief overview of management plan Brief overview of marketing plan Brief overview of financial plan including sales and profit projections
Business Description
Mission, vision and values Products and/or services Unique competitive advantage Legal structure and ownership
Industry Analysis
Definition and health of industry Barriers to entry and exit Power of buyers and suppliers Complementary/substitute products Analysis of major competitors Current trends relevant to business Impact of technology and innovation Key factors for industry success
Management Plan
Members of the management team Structure of organization and roles Acquisition/sourcing of materials Production/assembly of products Packaging and distribution Customer service strategy
Marketing Plan
Market segments/customer profiles Target customers and/or companies Channels for product distribution Sales and marketing strategies Pricing and market positioning
Financial Plan
Financing the venture Projected financial statements Cash flow analysis Break-even analysis
Financial Planning
Confirms there is viable economic model for the business Uncovers risks that will need to be managed Builds investor confidence (easier to finance and lower financing costs) Improves negotiation position of the entrepreneur
Financial Summary
Financing required – amount raised and future requirements Timing of financing (stages and milestones) Projection of financials over 3-5 year period (by month or quarter year 1) Past financial history if any ROI expectations
Implementation Plan
Major objectives for the first year of operation Specific action plans for achieving each objective
Sample business plans can be viewed on the following websites: www. bplans.com www.businessplans.org