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BUSINESS PLAN

Essential steps towards preparing a professional plan

Process Flow
Self-Analysis: Are you Entrepreneurial?

Consider Other Factors

Determining Your Product/Service Line and Type of Business

WRITING A BUSINESS PLAN

Determining Your Financial Requirements

Seeking Sources of Capital

The Business Plan


A written document that describes the relevant external and internal elements involved in starting a new venture A game plan or road map

Importance
Reference or important tool in obtaining financing A guide for policy formulation A guide to determine the viability of the business in a designated market A guide in implementing the project or business An overall guide for the owner of the business

Sections of a Business Plan


Cover page Table of contents Executive Summary or Overview Management and Organization Product or Service Plan Marketing Plan Financial Plan Growth Plan Appendix

COVER PAGE
Name of company Address, fax, phone, email, web Logo Picture of product if applicable Confidentiality report

THINGS TO CONSIDER

EXECUTIVE SUMMARY
Owners vision for the business Company history if any very brief What is the business area? What is the current stage of development? What is unique about the product or service? What form of organization? Key management. Key support groups Overview of marketing plan Competitors How much funding is needed? How much is already invested? How long to break even? Debt or equity? Contribution to economy?

MANAGEMENT & ORGANIZATION


Management Team Compensation and ownership Contracts and franchise agreements Board of Directors/Advisory Council Organization charts Office space requirement PrePre-operating activities PrePre-operating expenses

PRODUCT OR SERVICE PLAN


Purpose of the product Unique features Stage of development Future research and development Trademarks, copyrights, licenses and royalties Government approvals Production limitations Product liability Production Manufacturing facilities, if applicable Environmental factors

MARKETING PLAN
Industry profile Competition profile Customer profile Pricing profile Gross margins on products Market penetration Advertising and promotion Packaging and labeling Service and warranties Trade shows Future markets

FINANCIAL PLAN
Assumptions Cash flow projections Profit and Loss statement Balance Sheet

GROWTH PLAN
New offerings to market Capital requirements Personnel requirements

APPENDIX
Detailed resume of the management team Copies of patents, etc Actual documents of partnership, corporate bylaws, etc Copies of product or service brochures Reference letters Market studies Map showing location of the business Last three years tax returns and any other historical financial information Others

P L A BUSI N ESS format

BUSINESS PLAN DEVELOPMENT


I. Executive Summary


Summary of the complete business plan

II. Organization and Management


       

Form of business Business name Capability profile Organizational chart Recruitment and hiring Office space requirement PrePre-operating activities PrePre-operating expenses

III. Production Plan


 

Production process Materials and supplies needed


columns: Item, Unit price, Quantity, Total

Fixed Assets
columns: Item, Unit price, Quantity, Total

  

Sources of Fixed Assets Maintenance and Repair Shop Location and Layout Personnel requirement
columns: Position, Qualification, Salary

Production Expenses
columns: Item, Cost

IV. Marketing Plan


 

The Product Product features


columns: (1) Our Product/Service (2) Competitors Product

Target market
Class A Class B Class C Class D Class E

Age bracket: ___________________

IV. Marketing Plan


     

Location of Business Total Demand Current Supply DemandDemand-Supply Gap Target Market Share (%) Main Competitors Strategies
columns: (1) Competitor (2) Strategies

Projected Sales (table form)

IV. Marketing Plan




Proposed Marketing Strategy


Service strategy Distribution Promotion Strategy Pricing Strategy

Selling Expenses

V. Financial Plan


Project Cost
columns: Particulars, Equity, Loan, Total

Loan Repayment Schedule


columns: Year, Total Amortization, Interest, Principal, and Balance

   

Projected Cash Flow Projected Income Statement Projected Balance Sheet Financial Analysis (Liquidity, Solvency & Profitability)

Why some business plans fail?


Lack of experience by the entrepreneur Lack of commitment at all Unreasonable goals set

Rules to Observe in Writing the Business Plan


It must be neat It must be grammatically correct It must be realistic and attainable It must be in laymans language It must not overemphasize the product or service

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