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DEVELOPING A

BUSINESS PLAN

A business plan is a formal written document containing the goals of a business, the
methods for attaining the goals, and the time frame for the achievement of the goals . Every
entrepreneur who decided to enter any business venture must have a business plan on their hand to
guide them throughout the process. A business plan has five parts: an executive summary, management
and organization, products/service plan, market plan, and financial plan.

I. EXECUTIVE SUMMARY
This is the last part that should be accomplished because it will summarize the information and
data gathered from Parts II-V of the business plan.

 Description of the proposed business and business model

 Description of the market opportunity to capture, or market problem the business solves

 Reasons why this is an attractive business opportunity

 Key distinctions or differentiators of the business versus competitors

 Overview of the sales, marketing, and operations strategy and plan

 Description of the executive plan and timeline

 Overview of projected financials containing revenues, costs, profits, and assumptions

II. MANAGEMENT AND ORGANIZATION

 Company Name, Logo and Address

 Vision and Mission Statements

 Key Personnel

 Workforce and Support Personnel

 Organizational Chart
 Ownership, Capitalization, Compensation and incentives

 External Management Support

III. PRODUCT/SERVICE PLAN

 Purpose of the product/ service

 Product’s unique features

 Material requirements and sources of supply

 Equipment that will be used to manufacture the product/ render the service

 Production/ Service Process and Controls

 Distribution logistics

 Regulatory and other compliance issues

IV. MARKET PLAN

 Market Analysis which includes demand and supply vis-à-vis competitors

 Marketing and Sales Strategies

 Product/Service Characteristics or features

 Pricing Policy

 Sales Projections

V. FINANCIAL PLAN

 Start-up costs requirements

 Financial projections

 Breakeven analysis

 Budget
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