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<<COMPANY LOGO>> <<COMPANY NAME>> BUSINESS PLAN

<<Prepared by:__________________>> <<Date>>

Table of Contents
Page
Confidentiality Agreement 1 % E!e"#ti$e S#mmary Com&any 'e("ri&tion Promoters, shareholders and Board Advisors Products and services Long erm Aim o! Business "b#ectives $%&%"% % Analysis ) Mar*et Analy(i( arget mar'et otal mar'et valuation argeted share )ar'et trends Pro!ile o! competitors *ompetitive advantage Bene!its to clients ii 1 % 2 2 2 2 2 2 ) ( ( ( ( ( + +

Mar*eting,Sale( Strategy ,ncome sources )ar'eting strategy Pricing Advertising and Promotion $ales Strategy

. 1 / / / 3 3 3 3 3 6 56 55 52 5( 1+ 112

.e(ear"/ 0 'e$elo&ment Patents, copyrights and brands Product0$ervice Development 12D

Staffing and O&eration( )anagement "rganisation *harts $ta!!ing raining Plans "perations

4inan"ial Pro5e"tion( 4ey Assumptions Pro!it and Loss Accounts Balance $heets *ash!lo7 Pro#ections

3 6 18

Sale( Pi&eline 4#nding .e7#irement( A&&endi"e(

Confidentiality Agreement
9/e #nder(igned reader a"*no:ledge( t/at t/e information &ro$ided in t/i( ;#(ine(( &lan i( "onfidential< t/erefore= t/e reader agree( not to di("lo(e it :it/o#t t/e e!&re(( :ritten &ermi((ion of <<*ompany0Promoter>>> It i( a"*no:ledged ;y t/e reader t/at information to ;e f#rni(/ed in t/i( ;#(ine(( &lan i( in all re(&e"t( "onfidential in nat#re= ot/er t/an information t/at i( in t/e &#;li" domain t/ro#g/ ot/er mean(= and t/at any di("lo(#re or #(e of t/i( "onfidential information ;y t/e reader may "a#(e (erio#( /arm or damage to <<*ompany>>> U&on re7#e(t= t/i( do"#ment i( to ;e immediately ret#rned to << *ompany0Promoter>>>

?????????????????????????? Signat#re

?????????????????????????? Name @&rinted

?????????????????????????? 'ate

9/i( i( a ;#(ine(( &lan> It doe( not im&ly offering of (e"#ritie(>

1.

Executive Summary

<< Introd#"e &romoter( /ere= and t/e rea(on yo# are no: &re&aring t/i( B#(ine(( Plan> 9/i( (e"tion (/o#ld not ;e "om&leted #ntil t/e ;#(ine(( &lan i( :ritten> It :ill /ig/lig/t all mile(tone( in t/e "om&anyA( de$elo&ment o$er t/e ne!t fi$e year(> It (/o#ld (#m #& t/e follo:ing area(B

1 2 3 4 5 6 7

P#r&o(e of t/e &lan Prod#"t or (er$i"e and it( ad$antage( Mar*et o&&ort#nity Management team 9ra"* re"ord= if any 4inan"ial &ro5e"tion( 4#nding re7#irement(

4inan"ial &ro5e"tion( (/o#ld ;e (#mmari(ed and /ig/lig/ted> 9/e follo:ing format i( (#gge(ted a( a g#ideB

Year 1 Sales Ex orts !et Profit before Tax "nvestment Em loyment

Year 2

Year 3

.emem;er t/at &otential in$e(tor( often ma*e a &ro$i(ional 5#dgement ;a(ed on t/e e!e"#ti$e (#mmary= and t/at t/eir de"i(ion to read t/e main ;ody of t/e ;#(ine(( &lan :ill de&end on t/e information &re(ented /ere> 9/e a&&endi"e( at t/e ;a"* of t/e &lan "ontain

more detailed information to (#&&ort t/e main te!t of t/e ;#(ine(( &lan> >>

2.

Com any #escri tion

Promoters and S$are$olders << 'e("ri&tion of t/e &eo&le in$ol$ed in (tarting t/e ;#(ine((B

9 Promoter( 10 Management (tr#"t#re and area( of re(&on(i;ility 11 S/are/older( name(= no> of (/are(= C (/are/olding and "a(/ in$e(tment to date
Advisors << 4inan"ial= legal= and ot/er ad$i(or( (/o#ld ;e li(ted= :it/ name(= addre((e( and "onta"t detail(> >> Products and services << E!&lain "learly :/at yo#r &rod#"t or (er$i"e i( and :/at it doe(>

12 13 14 15 16 17

Ba"*gro#nd to it( de$elo&ment Benefit( and 4eat#re( Uni7#e (elling &oint( Ad$antage( to "#(tomer( 'i(ad$antage( or :ea* &oint( 4#t#re de$elo&ment( >>

%ong Term Aim of t$e &usiness << State t/e longDterm aim of t/e ne: ;#(ine((> >> 'b(ectives << State t/e (&e"ifi" mile(tone( to ;e a"/ie$ed ;y t/e "om&any o$er t/e ne!t fi$e year( @(ale(= e!&ort(= em&loyment= &rod#"t de$elo&ment= et" > >> S)'T Analysis << Analy(e t/e (trengt/( and :ea*ne((e( of t/e ;#(ine(( and &rod#"t or (er$i"e= t/e o&&ort#nitie( t/at e!i(t in t/e mar*et&la"e= and t/e t/reat( to t/e $ia;ility of t/e &ro5e"t> 9/i( i( ;e(t done in a matri! diagram a( follo:(B Strengt$s 1 2 ' ortunities )ea*nesses 3 4 T$reats

5 6 >>

7 8

3.

+ar*et Analysis

<< 9/i( (e"tion "o$er( mar*et re(ear"/ and "om&etitor analy(i(> Yo# m#(t (/o: t/at yo# /a$e done t/e mar*et re(ear"/ to 5#(tify t/e &ro5e"tion( made in yo#r ;#(ine(( &lan> It m#(t demon(trate t/at t/ere i( a $ia;le mar*et and t/at yo# "an ;eat t/e "om&etition in t/e mar*et for (ale(> >> Target +ar*et << 9/e mar*et to :/i"/ yo# are &lanning to (ell t/e &rod#"t or (er$i"e> Analy(e t/e (egment( of t/i( mar*et a( follo:(B

18 SiEe of ea"/ mar*et (egment 19 I( t/e (egment gro:ing or de"liningF 20 C/ara"teri(ti"( of &otential "#(tomer( in ea"/ (egment >>
Total +ar*et ,aluation << S/o: t/e total &otential $al#e of t/e mar*et for t/i( ty&e of &rod#"t or (er$i"e= in all t/e targeted mar*et(= dome(ti" and international> >> Target Com any revenue << 9/e(e fig#re( are t/e ;a(i( for t/e (ale( fig#re( in yo#r finan"ial &ro5e"tion( and m#(t ;e ;a(ed on reali(ti" a((e((ment(> In"l#de a$erage deal (iEe= lengt/ of (ale( "y"le= re"#rring re$en#e(>> +ar*et Trends << Analy(e :/at i( /a&&ening in t/e mar*etB

21 22 23 24 25

.e"ent "/ange( 4#t#re &redi"tion( 'ri$er( (#"/ a( demogra&/i" "/ange(= e"onomi" and legi(lati$e fa"tor( Im&li"ation( for yo#r &rod#"t or (er$i"e Yo#r &lan( to meet f#t#re demand( and "/ange( in t/e mar*et >>

Profile of Com etitors <<Analy(i( of yo#r "om&etitor( in t/e mar*etB

26 G/at are t/e "om&eting &rod#"t( and (er$i"e(F 27 Profile of *ey &layer( @"om&any (iEe= t#rno$er= &rofita;ility et" and t/eir mar*et (/are

28 Ad$antage( and di(ad$antage( of t/e "om&etitor(A offering( >>

Com etitive Advantage << 9/i( i( yo#r a((e((ment of :/y &otential "#(tomer( :ill "/oo(e to ;#y yo#r &rod#"t in &la"e of t/o(e &rofiled a;o$e> Ad$antage( may in"l#deB 29 Uni7#e feat#re( 30 Pri"e 31 Ne: te"/nologie( or (y(tem( 32 Better $al#e to "#(tomer( in term( of effi"ien"y or .OI or "o(t,;enefit ratio( 33 Greater "om&ati;ility :it/ e!i(ting (y(tem( 34 In"l#de any inde&endent $alidation or "a(e (t#die( >> &enefits to Clients << 9/i( i( :/at yo#r &rod#"t or (er$i"e &ro$ide( to &otential "#(tomer( in term( of t/eir o:n ;#(ine(( goal(> 'oe( yo#r &rod#"t or (er$i"e ena;le t/em toB

35 36 37 38 39 40 41 42

In"rea(e (ale( In"rea(e effi"ien"ie( Sa$e moneyF Sa$e timeF Ma!imi(e re(o#r"e(F .ed#"e error(F .ed#"e do:ntimeF Im&ro$e C#(tomer Ser$i"e= red#"e "/#rn= in"rea(e loyalty

G/at :ill ;#ying yo#r &rod#"t or (er$i"e a"t#ally do for t/e "#(tomerF >>

-.

+ar*eting.Sales Strategy

<< 9/i( (e"tion (et( o#t yo#r (trategie( for rea"/ing yo#r target mar*et= aro#(ing t/eir intere(t in yo#r &rod#"t or (er$i"e= and a"t#ally deli$ering t/e &rod#"t or (er$i"e to t/em in (ale(> >> +ar*eting Strategy << Ho: yo# :ill &o(ition yo#r &rod#"t or (er$i"e in t/e mar*et and differentiate it from it( "om&etitor(B

43 44 45 46 47 48 49 50

G/i"/ (egment( of t/e mar*et :ill ;e targeted fir(t and :/yF Ho: :ill t/i( ;e de$elo&ed to rea"/ t/e f#ll target mar*etF Ho: :ill yo# differentiate yo#r &rod#"t or (er$i"eF G/at *ey ;enefit( :ill ;e /ig/lig/tedF G/at &otential "#(tomer( /a$e yo# already targetedF Ha$e yo# a te(t (ite in o&eration= and :/at feed;a"* i( "oming from t/i(F G/at "onta"t( "an ;e #(ed to generate mar*et a:arene(( and (ale(F G/o :ill do t/e mar*etingB (taff= agen"y= re&(F >>

/evenue Sources << G/at "ontri;#tion( to re$en#e and &rofit :ill yo#r ;#(ine(( /a$eF
Irl EU US .e(t Gorld of

1 2 3 4 5

Prod#"t( Ser$i"e( Li"en"e( After (ale( U&grade(

Sales Strategy << Ho: yo# :ill (ell yo#r &rod#"t or (er$i"e to t/e target mar*et>

51 52 53 54 55 56 57

'ire"tly .etail 'i(tri;#tor Agent Sale( re& Ge;(ite .e$en#e S/aring Partner(

Analy(e for ea"/ met/od t/e "o(t( in$ol$ed= :/et/er it :ill rea"/ t/e intended mar*et effi"iently= t/e "ontrol yo# :o#ld retain o$er t/e &ri"ing and &o(itioning= t/e logi(ti"(= and t/e o$erall integration :it/ yo#r mar*eting (trategy> State t/e ad$antage( of t/e met/od( yo# /a$e "/o(en to (ell yo#r &rod#"t or (er$i"e> >>

Pricing << Ho: yo# :ill (et t/e &ri"e "/arged for yo#r &rod#"t or (er$i"e> Con(ideration( in"l#deB

58 59 60 61 62 63

Com&etitor(A &ri"e( Le$el of "om&etition in t/e mar*et Per"e&tion of 7#alityD&ri"e relation(/i& ;y "#(tomer( Prod#"tion "o(t( and o$er/ead( C/ain of di(tri;#tion and t/e addedD$al#e at ea"/ (tage 9/e e!tent to :/i"/ t/e ;#yer "an "ontrol t/e &ri"e

State /o: ea"/ &rod#"t or (er$i"e :ill ;e &ri"ed= referring to t/e in"ome (o#r"e( a;o$e> >> +ar*eting and Communications Strategy << Ho: yo# :ill &romote yo#r &rod#"t or (er$i"e in t/e mar*et&la"e>

64 65 66 67 68 69

Ad$erti(ing I :/ere= :/en= /o:= to :/om P#;li" relation( 'ire"t mar*eting Ge;(ite and internet mar*eting E!/i;ition( and "onferen"e( Gord of mo#t/ >>

0.

/esearc$ and #evelo ment

Tec$nology /oadma << S/o: t/e intended f#t#re de$elo&ment of yo#r &rod#"t or (er$i"e= i>e>= "/ange( to meet f#t#re mar*et demand(= ada&tation( to international mar*et(= or #&grade(> Al(o detail &lan( for ne: &rod#"t( or (er$i"e( to add to t/e range> In"l#de

70 71 72 73 74

9eam,'e&artment (tr#"t#re Met/odology Platform( #(ed Mile(tone( to ;e a"/ie$ed Sy(tem O$er$ie: 'iagram>>

/esearc$ and #evelo ment << Indi"ate :/et/er yo# :ill /a$e ongoing .0' a( an a"ti$ity of t/e "om&any= :/at area( t/i( :ill ;e e!&loring and :/at f#t#re "ontri;#tion( to t/e "om&any yo# e!&e"t from t/i( re(ear"/> >> Tec$nical Partners << Li(t all &artner( and indi"ate nat#re of in$ol$ement >> "P1 Patents1 Co yrig$ts1 &rands << Indi"ate any &rote"tion a$aila;le for yo#r &rod#"t or (er$i"eB :/et/er t/e te"/nology "an ;e or /a( ;een &atented= :/et/er yo# "an a$ail of "o&yrig/t or trademar* regi(tration= and t/e ;rand image yo# intend to ;#ild #& a( a &rote"tion again(t "om&etition> >>

2.

Staffing and ' erations

<< 9/i( i( :/ere yo# :ill o#tline t/e intended (tr#"t#re of t/e "om&any in term( of management= n#m;er of em&loyee(= and t/e &/y(i"al o&erational re7#irement( to &rod#"e or (#&&ly t/e &rod#"t or (er$i"e> >>

+anagement 3including &oard4 'rganisation C$art << In"l#de a diagram of t/e :ay in :/i"/ t/e management of t/e ne: $ent#re :ill ;e organi(ed> 9/i( (/o#ld (/o: t/e area( of re(&on(i;ility of ea"/ manager and t/e em&loyee( to ;e ta*en on o$er t/e ne!t t/ree year(> >> Staffing << State :/at em&loyee( :ill ;e ta*en on o$er t/e ne!t t/ree year(= :it/ :/i"/ (*ill(= in :/i"/ area( of t/e ;#(ine((> >> Training Plans << O#tline t/e &lanned em&loyee and management de$elo&ment to ;e #nderta*en in order to maintain a (*illed :or*for"e> 9/i( (/o#ld al(o tie in :it/ t/e f#t#re mar*et de$elo&ment( and any ne: &rod#"t or (er$i"e de$elo&ment(> >> ' erations << State t/e &/y(i"al re7#irement( of t/e ;#(ine((B

75 76 77 78 79 80 81

Premi(e( E7#i&ment Prod#"tion fa"ilitie( Infra(tr#"t#re Comm#ni"ation( fa"ilitie( Co(t( in$ol$ed S#&&lier( >>

5.
I II III IK

6inancial Pro(ections
Jey A((#m&tion( Profit and Lo(( A""o#nt( Balan"e S/eet( Ca(/flo: & & & &

/e7uirements for Pre aration of Pro(ections 1> O&ening fig#re( in"l#ded ;a(ed on late(t Mgmt,A#dited a""o#nt( %> S/are/older( 4#nd analy(ed into S/are Ca&ital= and .etained Profit( S/are Premi#m

)> Sale( A((#m&tion( &ro$ided ;y #nit= &ri"e (egment 0 geogra&/y and re"on"iled to &i&eline +> E!&endit#re "ategori(ed into .0'= Admin and O$er/ead( and Promoter( , *ey manager( (alarie( -> Identifi"ation of mont/ly and "#m#lati$e "om&any o&erational defi"it( 2> Sen(iti$ity analy(i( may ;e re7#ired= detailing (trategie( to ;e im&lemented if (ale( or e!&endit#re target( are not met> 1> Pro5e"tion( (/o#ld identify (e&arately O&erational Ca(/ 4lo: and e!ternal Ca(/ In5e"tion(

Key Assumptions

<< 9/i( (e"tion re$ie:( t/e *ey a((#m&tion( #(ed in t/e finan"ial &ro5e"tion(> It i( a g#ide to e!&lain /o: *ey fig#re( in t/e finan"ial &ro5e"tion( :ere arri$ed at> In"l#ded /ere (/o#ld ;e item( (#"/ a(B

82 83 84 85 86 87 88 89

In"ome (o#r"e( N#m;er of em&loyee( &ro5e"ted for ea"/ year and t/eir intended (alarie( Pro5e"ted in$e(tment in e7#i&ment and material( Pro5e"ted .0' "o(t( 'e&re"iation allo:ed for E!&e"ted rent and rate( "/arge( Creditor day( e!&e"ted and de;tor day( allo:ed E!&en(e "al"#lation(

9/i( (e"tion (/o#ld ;e ;rief and to t/e &oint> 4#rt/er detail regarding t/e(e item( "an ;e &la"ed in t/e A&&endi"e(> >>

II

Profit & Loss Accounts

<< Atta"/ /ere &ro5e"ted &rofit and lo(( a""o#nt( for t/e fir(t t/ree year( of t/e "om&anyA( o&eration(> >>

III

Balance Sheets

<< Atta"/ /ere &ro5e"ted ;alan"e (/eet( for t/e fir(t t/ree year( of t/e "om&anyA( o&eration(> >>

IV

Cashflow

<< Atta"/ /ere a mont/ly "a(/flo: &redi"tion for t/e fir(t t:o year( of t/e "om&anyA( o&eration(> >>

8.

Sales Pi eline

9a;le a( follo:(B Name of C#(tomer SiEe of 'eal 'ate PO e!&e"ted Pro;a;ility C Getting Sale of

9.

6unding /e7uirements

<< State /ere t/e total f#nding re7#irement( of t/e ;#(ine((= and /o: t/o(e are intended to ;e &ro$ided> Yo# :ill al(o need to (tate t/e a&&ro!imate ;rea*do:n of /o: t/e(e f#nd( are to ;e (&ent> Sources:

90 91 92 93 94

Promoter(A f#nd( Ban* lending Grant( or loan( from agen"ie( In$e(tment already re"ei$ed In$e(tment (o#g/t

/e7uired for:

95 96 97 98

E7#i&ment .0' Mar*eting Staffing >>

9.

endices

<< 9/i( (e"tion i( #(ed to &ro$ide t/e detailed data on :/i"/ t/e main te!t of t/e ;#(ine(( &lan i( ;a(ed= and to &ro$ide e!tra information of intere(t to t/e reader( of t/e ;#(ine(( &lan> Item( for in"l#(ion in a&&endi"e( $ary from ;#(ine(( to ;#(ine((= ;#t normally in"l#de (ome of t/e follo:ingB

99 Promoter(A CK( 100 'etailed finan"ial a((#m&tion( 101 Mo(t re"ent Com&any A#dited A""o#nt( 102 S/are Ca& ta;le and In$e(tment /i(tory 103 9erm S/eet from Potential In$e(tor( 104 'etailed mar*et re(ear"/ finding( 105 Promotional literat#re 106 Prod#"t or (er$i"e information 107 'etail( of "om&any :e;(ite 108 9e(timonial( or letter( of intent from "#(tomer( >>