Transcript Document 7230235

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:


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You have intimate knowledge of an industry
(products, services, competitors, customers’
needs, missing pieces)
You find a way to meet a need that is not
being met, or a way to meet a need better
than other companies are meeting it
You can execute a viable business in the
industry (robust market, healthy margins,
early cash flow, high profit potential, a
strong team, customers 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
3 to 5 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