Business Plan

 Blue print of business.

 Written document
 Detailed and covers entire scope of
business
 It may be in the form of a report.

Entrepreneur business plan 1

Definition

 Document that can convince

the reader that the business
can produce enough revenue
to make a satisfactory profit
and therefore attractive as an
investment opportunity

Entrepreneur business plan 2

Functions of a Business Plan

 Serves as an Action Plan

 Serves as a Road Map
 Serves as a Sales Tool

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Executive Summary
(Step Ten)
 Opportunity
 Solution
 Competitive Advantage
 Process
 Positioning
 Financials
 Management

Entrepreneur business plan 4

Company Overview
(Step One)
 Introduction
 Mission Statement
 History and Current Status
 Market and Products
 Objectives

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Mission Statement

 A clear statement of your

company’s long-term mission. Try
to use words that will help direct the
growth of your company, but be as
concise as possible.

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History and Current Status

 Briefly outline the history and

current status of your company

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Market and Products

 Summarize key technology, concept or

strategy on which your business is based

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Objectives

 Where are you going with your

company?
 What are your goals for the
company?
 What is your exit strategy?

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Long-Term Goals

 5-Year Goals
– State specific measurable objectives
– State Market share objectives
– State revenue/profitability objectives

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Products and Services
Description (Step Two)
 Introduction
 Description
 Market Comparison
 Proprietary Rights
 Stage of Development

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Industry and Marketplace
Analysis (Step Three)

 Introduction
 Industry Analysis
 Marketplace Buyer Analysis
 Marketplace Competitor Analysis

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Opportunities

 Problems & Opportunities

– State consumer problems, and define
nature of product/service opportunities
create by those problems

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Competition

 Summarize competition
 Outline your company’s competitive
advantage

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Risks & Rewards

 Risks
– Summarize risks of proposed project
 Addressing Risk
– Summarize how risks will be addressed
 Rewards
– Estimate expected pay-off, particularly if
seeking funding

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Marketing Plan
(Step Four)
 Introduction (The Seven Sentence Plan)
 Target Market Strategy
 Product/Service Strategy
 Pricing Strategy
 Distribution Strategy
 Sales Strategy
 Marketing and Sales Forecasts

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Operations Plan
(Step Five)
 Introduction
 Operations Strategy
 Scope of Operations
 Ongoing Operations
 Operating Expenses

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Development Plan
(Step Six)
 Introduction
 Development Strategy
 Development Timeline
 Development Expenses

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Resource Requirements

 Technology Requirements
 Personnel Requirements
 Resource Requirements
 External Requirements

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Management Plan
(Step Seven)
 Company Organization
 Management Team
 Administrative Expenses

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Financial Plan
(Step Eight)
 Financial Statements
 Ratio Analysis
 Funding Requirements
 Sources and Uses of Funds
 Business Risks

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Offering
(Step Nine)
 Investment Requirements
 Valuation of the Business
 Exit Strategies

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Key Issues

 Near Term
– Isolate key decisions and issues that
need immediate or near-term resolution
 Long Term
– Isolate issues needing long-term
resolution
– State consequences of decision
postponement

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