Assignment on : Content of Business Plan

GROUP : “UNIQUE”

Name ID. Topics

Tanvir Hossain (L) ASH1410070M What is a Business plan?

Taoheed Sharif ASH1410053M Features of Business plan

Farzana Yasmin BKH1410020F Uses of Business plan

Mahadi ASH1410080M Why is a Business plan so essential?

Tanvir Hossain ASH1410035M How can you write a business plan?

Munni Akter BKH1410082F Features of Business plan

Taslima Aktar papia BKH1410025F Uses of Business plan

What is a Business plan?

A written document describing the nature of the business, the sales and marketing strategy, and
the financial background, and containing a projected profit and loss statement.

A business plan is also a road map that provides directions so a business can plan its future and
helps it avoid bumps in the road. The time you spend making your business plan thorough and
accurate, and keeping it up-to-date, is an investment that pays big dividends in the long term.

According to Business Dictionary

Set of documents prepared by a firm's management to summarize its operational and financial
objectives for the near future (usually one to three years) and to show how they will be
achieved. It serves as a blueprint to guide the firm's policies and strategies, and is continually
modified as conditions change and new opportunities and/or threats emerge. When prepared
for external audience (lenders, prospective investors) it details the past, present, and forecasted
performance of the firm. And usually also contains pro-forma balance sheet, income statement,
and cash flow statement, to illustrate how the financing being sought will affect the firm's
financial position.

According to INVESTOPEDIA

A business plan is a written document that describes in detail how a business, usually a new one, is
going to achieve its goals. A business plan lays out a written plan from a marketing, financial and
operational viewpoint. Sometimes, a business plan is prepared for an established business that is
moving in a new direction.

Essentially, it provides detailed information about where a company is going and how it will get
there. Many experts consider such a plan critical to the success of a business.

Often, a business plan is required when seeking a business loan or investment capital. Investors
and loan officials need to know what a business owner hopes to accomplish and the steps he or
she plans to take to meet goals. Business plans help those in the position to loan money
determine whether or not a business is likely to succeed, based on information provided by the
owner or owners. A company backed by a well-thought-out plan is a better loan or investment
risk than one with a thrown together or incomplete plan.
 This graph is an identical analysis of business plan.

Business plans aren't just useful for obtaining financing. A carefully considered plan can serve as
a veritable road map to success for the business owner and company employees. It can help all
involved stay on task while striving to achieve goals. Furthermore, this type of plan may be
reviewed and revised when necessary, allowing those operating a business to keep the strategies
that work, eliminate those that don't, and change objectives as the business evolves.

When preparing a business plan, it is vital to put maximum effort into researching every aspect
of your venture. You'll need to include detailed information about everything from the basics of
your product or service to how you intend to manage daily operations. If you plan to seek outside
financing, you'll need to make your plan both informative and captivating. By doing so, you'll be
able to keep loan officers or investors interested long enough to read the bulk of your plan and,
hopefully, decide to provide the financing you need.
Your business plan should provide a detailed description of your business, including the products
or services you plan to offer, as well as expected expenditures and profits. If you have products
to sell, you'll need to include information about the manufacture of those products. A detailed
description of the market for your products or services, along with competition comparisons,
should be provided as well. You'll also need to include your plans for development, distribution,
staffing, funding, and more.

Before you even start writing your business plan, you need to think about who the audience is
and what the goals of your plan are. While there are common components that are found in
almost every business plan, such as sales forecasts and marketing strategy, business plan formats
can be very different depending on the audience and the type of business.

For example, if you’re building a plan for a biotech firm, your plan will go into details about
government approval processes. If you are writing a plan for a restaurant, details about location
and renovations might be critical factors. And, the language you’d use in the biotech firm’s
business plan would be much more technical than the language you’d use in the plan for the
restaurant.

Plans can also differ greatly in length, detail, and presentation. Plans that never leave the office and are
used exclusively for internal strategic planning and management might use more casual language and
might not have much visual polish. On the other end of the spectrum, a plan that is destined for the desk
of a top venture capitalist will have a high degree of polish and will focus on the high-growth aspects of
the business and the experienced team that is going to deliver stunning results.
Here is a quick overview of three common types of plans:
ONE-PAGE BUSINESS PLAN

A one-page business plan is exactly what it sounds like: a quick summary of your business
delivered on a single page. No, this doesn’t mean a very small font size and cramming tons of
information onto a single page—it means that the business is described in very concise language
that is direct and to-the-point.

A one-page business plan can serve two purposes. First, it can be a great tool to introduce the
business to outsiders, such as potential investors. Since investors have very little time to read
detailed business plans, a simple one-page plan is often a better approach to get that first
meeting. Later in the process, a more detailed plan will be needed, but the one-page plan is great
for getting in the door.

This simple plan format is also great for early-stage companies that just want to sketch out their idea in
broad strokes. Think of the one-page business plan as an expanded version of jotting your idea down on a
napkin. Keeping the business idea on one page makes it easy to see the entire concept at a glance and
quickly refine concepts as new ideas come up.

The Internal business plan

The internal business plan dispenses with the formalities that are needed when presenting a plan
externally and focuses almost exclusively on business strategy, milestones, metrics, budgets, and
forecasts. And of course it also includes the review schedule for monthly review and revision.
These internal business plans skip details about company history and management team since
everyone in the company almost certainly knows this information.

Internal business plans are management tools used to guide the growth of both startups and
existing businesses. They help business owners think through strategic decisions and measure
progress towards goals.

External business plan (the standard business plan document)

External business plans, the formal business plan documents, are designed to be read by
outsiders to provide information about a business. The most common use is to convince investors
to fund a business, and the second most common is to support a loan application. Occasionally
this type of business plan is also used to recruit or train or absorb key employees, but that is
much less common.

A formal business plan document is an extension of the internal business plan. It’s mostly a

snapshot of the internal plan as it existed at a certain time. But while the an internal plan is short
on polish and formality, a formal business plan document should be very well-presented, with
more attention to detail in the language and format.
In addition, an external plan details how potential funds are going to be used. Investors don’t just
hand over cash with no strings attached—they want to understand how their funds will be used
and what the expected return on their investment is.

Finally, external plans put a strong emphasis on the team that is building the company. Investors
invest in people rather than ideas, so it’s critical to include biographies of key team members and
how their background and experience is going to help grow the company.
Features of business plan

A business plan is a document outlining the goals of a business and the strategies to achieve
these goals. It is mainly prepared by new businesses or by ones making major changes. Business
plan has some important features. These are:
 A business always is always comprehensive. All aspects of the firm have to be treated
 The focus of a business plan is always in the future.
 A business plan has to be prepared by the management team, not by the outsider.
 Expert assistance should be sought in making the business plan.
 The planning process, as such, is even more important than the resulting documents
 Others features:
Some others important features of business plan are mentioned below:

01.Executive Summary

This is a complete overview of the plan. You want to engage the reader; show them why
your company is worth reading about. Think about what’s original in your business plan.
What sections of pure genius are there?

These are the five typical features in an Executive Summary

 The name and location of your business

 Your products/services
 Your mission statement
 What you want to achieve
 The Ask (how much money you need)

While this part appears first in the plan, you should write it last. Only once you’ve put the
whole thing together can you accurately summarize it

02.Business Description

This is your chance to describe your company and what it does. Include a look at when the
business was formed, and your mission statement. These are the things that tell your story and
allow others to connect to you. It can also serve as your own reminder of why you got started in
the first place. Turn to thissection for motivation if you find yourself losing steam.

Some of the other questions you can answer in the business description section of your plan
include:
  What is the business model? (What are your customer base, revenue sources and
products?)
 Do you have special business relationships that offer you an advantage?
 Where are you located? questions narrows your focus and shows potential lenders and backers
how you’re viewing your venture
 Who are the principals?
 What is your projected growth?

Answering these

03.Organization

The business must state the ownership structure and give details of the management team.The
Organization section is also known as the Design and Development Plan. It’s where you
plan how to take your business from a concept to a reality.

Think about the functions you’ll need to run the business. Plan milestones; set yourself
realistic goals to reach before the venture can be launched. And again think about quality
control

04.History of the business

This section gives full details on previous operations of a business. For a new business it will
explain where the idea came from and the reasons for starting the business.

05.SWOT analysis

A SWOT analysis (strengths, weaknesses, opportunities and threats) is an important part of a

plan. It’s rudimentary, but it allows you to think through the things impacting your business.

Like the resources self-audit, it helps you recognize your key strengths and weaknesses, but it
also encourages you to think about the things you can and cannot influence.

It encourages you to ask ‘what opportunities lie ahead for me in the timeframe of the plan’ and,
equally important, ‘what are the risks’?

You might not foresee the long tail risks – in fact, if you lay awake thinking about them it will
probably divert you from the main game of running the business and thinking about the things
you can influence – but you do need to consider potential risks.
These could include:

 Is there a risk of a new market entrant into your industry?

 Is there a risk a new distribution platform will impact the competitiveness of other
players versus yourself?
 Is there a risk of cheaper, more competitive imports flooding your market?

06.Mission Statement

The Mission Statement gives the overall goal of a business as well as its values. It serves as a
guide to the operation o the business.  For example: providing the highest quality goods and
services.

07.Business goals and objectives

The firms’ short-term, medium-term and long-term goals and the time in which these are to be
achieved is outlined in this section.

08.Product /Service Description

Describe clearly the product or service that you will be offering.Start with the easy part. What
are you selling? And more importantly, what makes it interesting? It’s far easier to hook
people in if you can make them see the merit in your product or service just as you
do.So explain why you’ve chosen it. Why it’s so great and why they should think the
same

09.Market Analysis

Describe your target market and your competitors.This is your chance to look at your
competition and the state of the market as a whole. Your market analysis is an exercise in seeing
where you fit in the market — and how you are superior to the competition.
As you create your market analysis, you need to make sure to include information on your core
target market, profiles of your ideal customers and other market research. You can also include
testimonials if you have them.
Part of your market analysis should come from looking at the trends in your area and industry.
Coffee House, Inc., recognizes that there is a wide trend toward “slow” food and the idea of
experiencing life. On top of that, Coffee House surveyed its city and found no local coffee
houses that offered fresh-ground beans or high-end accessories for do-it-yourselfers.

10.Marketing
Explain the various promotional, pricing and distribution strategies.Look at who you’re talking
to. What kind of people are they? Go further than male/female ABC1 etc. Think about
what they like, what they don’t like and how they’re likely to react to your business’
offering.

What state is the market in? Who are your competitors and what market share are you
going for? A good way to cover a lot of this is to do a SWOT analysis.

Then think about your distribution plan. How does it sit with your customers and your
desired market share? Look again at your competitors and how effective their
distribution is.

11.Operations

Explain how the business will function on a day-to-day basis. For example: Procurement of raw
materials, the use of technology and operating methods.The cogs and wheels of your
business. What processes will you have in place? What resources do you have/need?
What is the status and structure of your suppliers and where your operations will take
place?

Think about the quality of your product or service. How will you control it? What
contingency plans do you have?

And make sure you take your working capital into account; will your projected cash
inflows cover your forecast trade and other debts?If borrowing money, can you make
the repayments or do you need to ask for a repayment holiday until your business is
cash generative?

12.Industry Analysis

How has the industry changed in the past few years and who are the other firms in the industry.

13.Sales Forecast

What amount of sales the business expects to make on a monthly basis.

14.Management
This is often the most important part of a successful business. Without the best human
resources a company can fail, so think hard about this section.

 Who will take on governance and senior management roles?

 What other key management personnel will be employed?

 What are their backgrounds?

 What training structure will you need?

 Will you require lawyers, accountants and other professional advisors?

 Is a rewards system necessary?

 What are the costs of effective management?

15.Start –up Cost

The total amount needed to start the new business, giving a detailed description of what the
money will be used for.

16.Operating costs

E.g. fixed Costs (rent, insurance and salary) and variable costs (utilities and wages)

17.Projected Cash Flow

An estimate of how much you expect to earn periodically once you start operating.

18.Acquisition of Funds

Information on how funds will be obtained e.g. personal savings, borrowing from friends and
family, borrowing from financial institutions or by selling share
Features of a Business Plan
A business plan is a document outlining the goals of a business and the strategies to achieve the
goals.

1.Executive Summary:

It presents the salient points of the plan. It contains information on the purpose of the business,
its methods of operation , future expectations and History of the business .For a new business it
will explain where the idea came from and the reasons for starting the business.

2. Mission Statement:

The Mission Statement gives the overall goal of a business as well as guide to the operation o the
business. For example: providing the highest quality goods and services.

3. Business goals and objectives:

The firms’ short-term, medium-term and long-term goals and the time in which these are to be
achieved is outlined in this section.

4. SWOT Analysis:

Looks at the strength and weaknesses of the business E.g. Strengths – strategic location, years of
experience Weakness ,Industry Analysis.

5. Product /Service:

Describe clearly the product or service that you will be offering.

6. Market Analysis:
Describe your target market and your competitors . Marketing Strategy Explain the various
promotional, pricing and distribution strategies. For example: Procurement of raw materials, the
use of technology and operating methods.

7. Sales Forecast:

What amount of sales the business expects to make on a monthly basis .

8.Start –up Cost :

The total amount needed to start the new business, giving a detailed description of what the
money will be used for. Including Operating , fixed and variable cost.

8. Acquisition of Funds Information:

On how funds will be obtained ,from personal savings, borrowing from friends and family,
borrowing from financial institutions or by selling shares.
Why business plan is so essential for business?
Introduction: A business plan conveys the organizational structure of your business,
including title of directors or officer and their individual duties. It also acts as a
management tool that can be referred to regulatory to ensure the business is on course
with meeting goals, sales target or operational milestone .

Business plan is essential for business:

Clarify Direction

The primary purpose of a business plan is to define what the business is or what it intends to be
over time. Clarifying the purpose and direction of your business allows you to understand what
needs to be done for forward movement. Clarifying can consist of a simple description of your
business and its products or services, or it can specify the exact product lines and services you'll
offer, as well as a detailed description of your ideal customer.

Future Vision

Businesses evolve and adapt over time, and factoring future growth and direction into the
business plan can be an effective way to plan for changes in the market, growing or slowing
trends, and new innovations or directions to take as the company grows. Although clarifying
direction in the business plan lets you know where you're starting, future vision allows you to
have goals to reach for.

Attract Financing

The Small Business Administration states, "The development of a comprehensive business plan
shows whether or not a business has the potential to make a profit." By putting statistics, facts,
figures and detailed plans in writing, a new business has a better chance of attracting investors to
provide the capital needed for getting started.
Attract Team Members

Business plans can be designed as a sale tool to attract partners, secure supplier accounts and
attract executive level employees into the new venture. Business plans can be shared with the
executive candidates or desired partners to help convince them of the potential for the business,
and persuade them to join the team

Manage Company

A business plan conveys the organizational structure of your business, including titles of
directors or officers and their individual duties. It also acts as a management tool that can be
referred to regularly to ensure the business is on course with meeting goals, sales targets or
operational milestones.

Some other essential point for business plan:

1. The preparation process of business plan forces the entrepreneur to take an

objective, critical, and unemotional look at the business in its entirety.
2. It is a tool to manage the business better.
3. It is way of communication the firms ideas to other and the basis for the
financial proposal.
4. It improves the firm’s chances of success.
5. It sells the entrepreneur and others on the business.
6. It communicates the strategy and business approach within the firm.
7. It increases coherence of operation of various functions within the firm.
8. It helps to direct everybody to work for the same goals.
9. It makes the firms better prepared for changes in the external environment.
10.It gives confidence to the entrepreneur.
11.It can be used in funding negotiation with venture capitalist.
12.In many situations it is a prerequisite for continuation of business
negotiation.
13.Often the complete version of the business plan is shortened or modified for
different use.
Question: What are the uses of a Business plan?

Answer:
A business plan is used in various situations. There are
1. Explain the Business: A business plan helps in planning while writing the business plan,
it is likely that the entrepreneur was able to detect many shortcomings in the original
business idea & there shortcomings could be overcome by thinking through & plugging
the gaps.
2. Operating the firm efficiently: This plan can serve as a guide or manual to help in
business & strategy formulation.
3. Funding of the Firm: A venture capitalist or an angel investor will very rarely commit
an investment to a start–up without persisting its business plan. The venture capitalists
will primarily use the business plan to gauge risks & forecast growth prospects. Investors
will never restrict analysis of the business just to the business plan but it will always
remain an important reference point.
4. Seeking Finance: Financial institution obviously concentrates on the ability of the
business to repay the debt & on the viability of collateral or other securities. Banks looks
for at least some specific issues to be addressed in the business plan.
5. Arranging Strategic alliances: An entrepreneurial firm may need to form alliances with
other firms to reach new market, develops new product or create common facilities.
Business plan can help convince a well-established retailer or distributor to commit to the
start-up.
6. Obtaining large contracts: By showing business plan authority can convince other
parties to obtain large contracts.
7. Attracting key employers: As business plan show the mission, vision, goals which
encourage & motivate the key employers in business projects.
8. Recruitment: A good business needs support from experienced top-level employees. A
business plan will help them understand what they are getting into. Of course, showing
the business plan to the rank & file is not necessary.
9. Completing mergers & acquisitions: Business plan help to complete mergers &
acquisition which are forecasting.
10. Starting international operation: As business plan shows its mission, visions, if there
any target for abroad marketing, it will help the authority to set-up how to do the job.
11. Selling the firm or part of its operation: Business plan helps to selling the firms.
12. Miscellaneous uses: Very often, an entrepreneur seeks moral support from friends &
family. A business plan can be a good way of presenting your business to your family. By
going through it, they will have a better appreciation of what you are setting out to do.