WRITING A BUSINESS PLAN Lesson 3

We decide that we are going to Malibu, which, according to our sign here,
is 1,760 from wherever this sign is located. So, we grab our suitcases,
sunglasses, and sunscreen and head west. We drive through rolling hills and
scenic pastures and then realize that we have no idea how to actually get to
Malibu because we don’t have a map—there’s no fancy GPS in the car, and
even though we look great in our sunglasses, the battery on our phones died
about three hours ago and no one brought a car charger. So, we begin
stopping at roadside diners and gas stations asking people how to get to
Malibu. Some of them have never even heard of Malibu and others seem to
know how to get there, but their directions seem very vague and generic.
Our travels are taking a very long time, and we are wasting a lot of money.
. . . Well, this isn’t how we expected the trip to go at all, is it? We had
planned to be in Malibu by now—or had we? As I recall, we didn’t plan at
all.
WHAT IS A BUSINESS PLAN?
A business plan is a written document that describes
in detail how a business—usually a startup—defines
its objectives and how it is to go about achieving its
goals.

Source: Investopedia
A BUSINESS PLAN GENERALLY CONTAINS THE
FOLLOWING PARTS:
Executive Summary
Company Description
Market Analysis
Organization and Management
Service or Product Line
Marketing and Sales
Funding Request
Financial Projections
Appendix
EXECUTIVE SUMMARY
If You Are an Established Business
The Mission Statement
Company Information
Growth Highlights
Your Products/Services
Financial Information
Summarize future plans
If You Are a Startup or New
Business
Focus on your experience and
background as well as the decisions
that led you to start this particular
enterprise.
Demonstrate that you have done
thorough market analysis.
COMPANY DESCRIPTION

Describe the nature of your business and list the marketplace

needs that you are trying to satisfy.
Explain how your products and services meet these needs.
List the specific consumers, organizations or businesses that your
company serves or will serve.
Explain the competitive advantages that you believe will make
your business a success such as your location, expert personnel,
efficient operations, or ability to bring value to your customers.
EXAMPLE
XYZ Consulting is a new company that provides expertise
in search marketing solutions for businesses worldwide,
including website promotion, online advertising, and search
engine optimization techniques to improve its clients'
positioning in search engines. We cater to the higher
education market, including colleges, universities, and
professional educational institutions.
MARKET ANALYSIS
1. Industry Description and Outlook
2. Information About Your Target Market
3. Distinguishing Characteristics
4. Size of the Primary Target Market
5. Pricing and Gross Margin Targets
6. Competitive Analysis
7. Regulatory Restrictions
ORGANIZATION AND MANAGEMENT

1. Company's Organizational Structure

2. Ownership Information
THE FOLLOWING IMPORTANT OWNERSHIP
INFORMATION SHOULD BE INCORPORATED INTO YOUR
BUSINESS PLAN:
1. Name
2. Position (include brief position description along with primary
duties)
3. Primary responsibilities and authority
4. Education
5. Unique experience and skills
6. Community involvement
SERVICE OR PRODUCT LINE
A Description of Your Product/Service
A paragraph or so on how orders from your
customers will be processed or fulfilled
Details About Your Product’s Life Cycle
Intellectual Property
A DESCRIPTION OF YOUR
PRODUCT/SERVICE
1. specific benefits of your product or service
2. product or service’s ability to meet consumer needs
3. any advantages your product has over that of the
competition
MARKETING AND SALES
Communication strategy

How are you going to reach your customers? Usually a

combination of the following tactics works the best:
promotions, advertising, public relations, personal selling,
and printed materials such as brochures, catalogs, flyers, etc.