P2

• business plan

  a comprehensive document that outlines the goals,

  strategies, financials, and operational plans for a new business venture.
• parts of business plan

  • introductory page
  • executive summary
  • environment and industry analysis
  • description of business
  • product plan
  • operations plan
  • marketing plan
  • organizational plan
  • financial plan
  • assessment of risk
  • timetable/milestone
  • appendices
• introductory page

  • company information
  • description of business
  • financing needs
  • confidentiality statement
• executive summary

  • key point: prepared after the full plan is written
  • purpose: capture the attention of investors
• environmental and industry analysis

  • sociocultural conditions
  • technological conditions
  • economical conditions
  • politico-legal conditions
• sociocultural conditions

  understanding consumer behavior
• technological conditions

  how technological developments affect the industry
• economic conditions

  assessing national and local economic factors
• politico-legal conditions

  understanding laws and regulations
• description of business

  • mission/vision statement
  • product/service information
  • business location
  • management team
• production plan (for manufacturing)

  • manufacturing process
  • plan layout and equipment
  • suppliers
  • production costs and future needs
• operations plan (for service and retail)

  • goods and service flow
  • retail operations
• operations plan (for service and retail)

  • goods and service flow
  • retail operations
• goods and services flow

  from supplier to customer (inventory, distribution, service delivery)
• retail operations

  how to manage sales and inventory
• marketing plan

  • target market
  • pricing, promotion, distribution
  • market research
  • sales forecast
• organizational plan

  • ownership structure
  • management team
  • advisors/ consultants
• financial plan

  • balance sheet
  • income statement
  • cash flow statement
• risk assessment


  identifying risks and how to manage them
• timetable/milestone

  • provides timeline for achieving key goals
  • shows investors when they can expect results
  • tracks progress
• appendices

  • additional information such as market research, financial details, resumes
  • does not support business plan but keeps it concise