P1

• Business Plan


  document that describes the key aspects of starting or expanding a business in a dynamic environment.
• what do business plans do?

  it integrates areas like marketing, finance, operations, and human resources while aligning them with the overall business strategy
• importance of business plans?

  it acts as a roadmap for short- and medium-term decisions
• why write a business plan?

  • assess viability
  • resource management
  • attract investors/financing
• who reads the business plan?

  • entrepreneurs
  • lenders
  • investors
• why do entrepreneurs read the business plan?

  to guide daily decisions
• why do lenders read the business plan?

  to decide if the entrepreneur can repay loans
• why do investors read the business plan?

  to assess if their investment will generate returns
• major sections of the business plan

  • market information
  • operations information
  • financial information
• market information

  understanding the potential market
• operations information


  understanding how the business will run
• financial information


  understanding the costs, revenue, and funding needed
• why is market information important?

  understanding your market helps you determine how big the market is and who will buy your product or service
• what to include under market information?

  • target market
  • market size
  • industry trends
• target market

  define the demographics (age, income, location) and psychographics (lifestyle, values)
• market size


  estimate how many potential customers there are and how often they might buy
• industry trends


  Is the industry growing? What external factors are affecting demand?
• why is operations information important?

  It will discuss how the business will be run is crucial to its success.
• what to include under operations information

  • location
  • operations
  • equipment/space
  • labor requirements
  • raw materials and suppliers
  • utilities
• why is financial information important?

  You need to forecast how much money you’ll make and spend to keep the business running.
• what to include under financial information????

  • revenue projections
  • capital expenditures
  • operating expenses
  • loans and financing
• revenue projections

  estimate your sales based on market size and potential demand
• capital expenditures


  costs for equipment, furniture, etc
• operating expenses


  costs like rent, salaries, utilities, raw materials
• loans and financing

  if you need funding, show how much you need and how you will use it