Business Plan

• According to Hisrich, Peters & Shepherd (2017), a business plan is a written document prepared by the entrepreneur that outlines all relevant external and internal elements involved in the start-up of a new business. It is frequently a synthesis of functional plans like marketing, and human resources. Business plan, also known as the game plan or road map
• Outline for a Business Plan

  I. Introductory Page II. Executive Summary – Two to three pages summarizing the complete business plan. III. Industry Analysis IV. Description of Venture V. Production Plan VI. Operations Plan VII. Marketing Plan VIII. Organizational Plan XI. Assessment of Risk X. Financial Plan

  XI. Appendix (contains backup material)
• The title page of a business plan provides a summary of its contents.
• The name and address of the company are included on the title page.
• The name of the entrepreneur, telephone number, fax number, e-mail address, and website address are also included on the title page.
• A paragraph describing the company and the nature of the business is typically included on the title page.
• The amount of financing needed is typically stated on the title page.
• The entrepreneur may offer a package, such as stock/debt, on the title page.
• A statement of the confidentiality of the report is important for security purposes and is included on the title page.
• A basic summary of the business plan, together with a concise company description, goals, and the reason for founding the company, are included in the introduction of the business plan.
• Business plans typically address the following queries: What is the purpose of the company? Why launch this company at this time?
• The title page sets out the basic concept that the entrepreneur is attempting to develop, which is important for investors to determine the amount of investment needed without having to read through the entire plan.
• Executive Summary: After the entire plan has been drafted, this component of the business plan is created. The executive summary, which is two to three pages long, is meant to pique the attention of the possible investor. The investor uses the summary to decide whether to read the complete business plan, thus the entrepreneur shouldn’t skimp on this crucial piece.
• Environmental Analysis – is an evaluation of uncontrollable external variables that may have an impact on the business plan. It is done to identify trends & changes on a national & international scale that may have an impact on the new venture.
• • Economics. The entrepreneur should consider trends in the gross national product (GNP), unemployment by geographic area, disposable income, and so on.
• • Culture. An assessment of cultural changes may take demographic shifts into account.
• • The use of technology. Technological advancements are difficult to forecast. Being in a rapidly changing market due to technological development will necessitate the entrepreneur making careful short-term marketing decisions as well as being prepared with contingency plans in the event of any new technological developments that may affect his or her product or service.
• Legal issues. There are numerous legal issues to consider when starting a new business. Any future legislation that may affect the product or service, channel of distribution, price, or promotion strategy should be anticipated by the entrepreneur.
• • Industry Analysis – the emphasis here will be on particular developments in the industry. These include, for instance:
  • Industry Demand. Demand in the industry is frequently available from published sources. Knowledge of whether the market is growing/declining, the number of new competitors, & possible changes in consumer needs are all important factors in determining the potential business that the new venture could achieve. The estimated demand for the entrepreneur’s product or service will necessitate additional marketing research.
• Description of Venture It provides information about the company’s product(s) & services. What is the company’s size, & what office & business equipment will be used? What is the number of employees & what their backgrounds are?
• Production Plan Strategy

  • A product plan, also known as a product roadmap, is a broad overview of the upcoming product, including timelines, budget, resources, tasks, & much more. The product plan describes what the product team intends to build, why it is being built, & when the product will be ready for launch. It also includes the manufacturing process (amount subcontracted), the physical plant, the machinery & equipment, and the names of raw materials suppliers.
• Operational Plan - Coordinates the timelines, action items, & key milestones that finance or the business must meet in order to carry out the strategic plan. In this way, an operational plan outlines the organization’s key objectives & goals & clarifies how they will be met. It also includes a description of how the company operates, order flow for goods and/or services, as well as technology utilization.
• Marketing Plan -Pricing, distribution, promotion, product forecasts, & controls are all part of the marketing plan. A marketing plan is the advertising strategy that a company will use to sell its product or service. The marketing plan will help determine who the target market is, how to best reach them, at what price point the product or service should be sold, & how the company will measure its efforts.
• Organizational Plan: Involves form of Ownership, Identification of Partners/Principal Shareholders, Authority of Principals, Management Team Background, & Roles & Responsibilities of Organizational Members. Is how a company prepares for success in their industry. It could include day-to-day operations, organizational goals, & potential expenses. Typically starts with big, long-term goals & then breaks them down into smaller, more attainable goals.
• Assessment of Risk/Risk Evaluation: Evaluate weakness(es) of business. New technologies Contingency plans The process of determining the significance of a risk by comparing an estimated risk to given risk criteria. Risk control refers to the actions taken to implement risk evaluation decisions. It should be noted that risk management can entail monitoring, re-evaluation, & decision-making compliance.
• Financial Plan: A. Assumptions B. Pro forma income statement C. Cash flow projections D. Pro forma balance sheet E. Break-even analysis F. Sources & applications of funds Financial Planning is the practice of devising a strategy for the future, specifically, for how you will manage your finances.
• Appendix (backup material) includes letters, market research data, leases or contracts, supplier price lists, business permits, licenses, & tax documents.