Business Plan Development Flashcards
The Business Plan’s Require
Business plans require honest thinking about your concept, opportunity, competitive landscape, keys to success, and people involved. This thinking is likely to result in more questions than answers, so help seeking and research are keys to success.
What’s In a Business Plan
Cover page, Table of contents, Executive summary, Business description, Business environmentanalysis, Industry background, Competitive analysis, Market analysis, Marketing plan, Operations plan, Management summary, Financial plan, Attachments & milestones
Getting Started
Define your purpose and audience:
Who will read this?
What do you want them to know?
What do you want them to do?
Determine your information needs: Market research (primary and secondary) Industry research Competitor analysis Relevant cost/financial data
The Executive Summary
This is your abstract for your proposition – it must be GREAT because it may be all that people read
Include a sentence or two each about:
The problem (pain) and the solution (painkiller) you offer
The context – market, industry, competitors
The business opportunity (size, timing, sustainability)
How you will capitalize on the opportunity (business model)
The financial potential (recognize expectations of audience)
The management team (why you?)
The resources needed/requested (the “ask”)
The mission statement
The Business Description
A summary of your offering and business model:
Describes current status of your business
Describes who you are trying to help
Describes the business you are creating
Describes the offering(s) you’ll sell
Describes why people will buy from you
Describes your available resources and future requirements
The Business Environment Analysis
In what industry will you compete?
Who are your competitors within that industry? In other industries?
What is the market: Geographic scope
Demographic scope
Who actually pays?
The Industry Background
What are the products or services produced by the industry?
How big is the industry and where are the primary “clusters” of participants?
What trends exist?
What barriers to entry prevent competition?
The Competitive Analysis
Who are the competitors: Direct & Indirect
What differentiates your product or service from your competition?
How much of a threat are your competitors to your venture?
Market Analysis
Readers need to know:
How big is the overall market?
To what extent is the market growing?
What is your “addressable” target market?
Why would this market prefer your solution?
The Marketing Plan
Characterize the “pain” in the market
Review your marketing/sales milestones
Characterize buyer preferences, routines and favored distribution channels
Determine value of each customer: Compare long-term benefits versus cost of customer acquisition to determine value
“Go To Market” Strategy
Product – focus on benefits, not features
Price – single, tiered, volume: Based on cost-plus, supply & demand, etc.
Placement – distribution channels and alliances
Promotion – how will customers learn:Word of mouth & social media, Promotions & tradeshows, Direct sales, Advertising
The Operations Plan
Describes how you will deliver your value proposition. Emphasize how your plan will result in superior value and/or lower costs than competitors:
Better/cheaper access to inputs
Better/cheaper access to labor capital
A favorable geographical location
Process innovations that will improve quality, timeliness, or costs
Superior distribution and pricing flexibility
The Management Summary
Critically important because readers know your plan won’t work, and the leaders will need to improvise
Describe each member of the management team:
Where have they worked?
What is their track record and reputation?
What knowledge, skills, and abilities do they possess?
How committed are they – do they have “skin in the game”?
Describe the team as a whole:
Affirm team strengths
Acknowledge and address team weaknesses
Express the team’s overall management philosophy
The Financial Plan
Tells the story of how much you will spend, how much you will make, and how quickly earnings will accumulate (the “common denominator”)
The capital requirements of the business Financial projections Break-even analysis Key assumptions Contingencies & probabilities Financial returns Business valuation
Attachments and Milestones
Additional documentation may include:
Detailed financials (summaries are in main document)
Expected milestones timeline (or in main document)
Pictures of prototypes, plans, etc.
Documentation of intellectual property
Letters from potential suppliers, distributors, alliance partners, customers, investors, etc.
Management team resumes
Proof of insurance
