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Friday, December 30, 2016

How to create a Business Plan?

Business Plan

Executive Summary
·         Outline of the company's purpose and goals (http://articles.bplans.com/writing-an-executive-summary, and https://www.entrepreneur.com/article/241071)
·         The Mission Statement (http://articles.bplans.com/write-company-overview, and https://www.entrepreneur.com/article/25752)
·         Corporate Social Responsibility (CSR) (http://www.inc.com/peter-economy/a-social-responsibility-action-plan-for-2014.html, and http://www.forbes.com/sites/csr/2011/04/26/the-five-elements-of-the-best-csr-programs/#119fd45233fd, http://www.hbs.edu/faculty/Publication%20Files/12-088.pdf )
·         Company Information (http://www.inc.com/articles/1999/11/15563.html)
·         Growth Highlights (http://www.inc.com/guides/business-plan-financial-section.html)
·         Your Products/Services (http://www.inc.com/jeff-haden/how-to-write-a-great-business-plan-products-and-services.html, and https://www.entrepreneur.com/article/241073)
·         Financial Information (https://www.entrepreneur.com/article/241077, and http://www.inc.com/guides/business-plan-financial-section.html)
·       Summarize future plan (http://www.infoentrepreneurs.org/en/guides/prepare-a-business-plan-for-growth)
Company Description
·        Characteristic of the organization
·        Geographic
·        Demographic
·        Benefits of the Products or Services
·        Disadvantage of Products or Services
·        Life Cycle of Products or Services
·        List of Potential Customers
·        Competitive Advantages
Market and Competitive Analysis
·        Life Cycle of Products or Services
·        Size of the Company
·        Historic Growth Rate
·        Characteristics of the life cycle stage, and projected growth rate.
·        Major Customer within the Industry
·        Target Market
·        critical needs
·        Size of the primary target market 
·        Forecast
·        Geographic percentage and number of customers 
·        Market Logics
·        Pricing and gross margin targets 
·         Market share
·         Strengths and weaknesses
·         How important is your target market to your competitors?
·         Are there any barriers that may hinder you as you enter the market?
·         What is your window of opportunity to enter the market?
  • Are there any indirect or secondary competitors who may impact your success?
  • Barriers (change technology, high investment cost, lack of quality personnel)
·         Regulatory Restrictions –  Include any customer or governmental regulatory requirements affecting your business, and how you’ll comply. Also, cite any operational or cost impact the compliance process will have on your business
Organization & Management
·         Organizational chart
·         Business Entity (sole proprietor, partnership, C or S Corporation, LLC,)
·         Names of owners
  • Percentage ownership
  • Extent of involvement with the company
  • Outstanding equity equivalents (i.e., options, warrants, convertible debt)
  • Common stock (i.e., authorized or issued)
  • Management Profiles
  • Experts agree that one of the strongest factors for success in any growth company is the ability and track record of its owner/management team, so let your reader know about the key people in your company and their backgrounds. Provide resumes that include the following information:
  • Name
  • Position (include brief position description along with primary duties)
  • Primary responsibilities and authority
  • Education
  • Unique experience and skills
  • Prior employment
  • Special skills
  • Past track record
  • Industry recognition
  • Community involvement
  • Number of years with company
  • Compensation basis and levels
  • Management Achievement (How many people do you manage in a department, Percent to which customers are increased, annually percentage of revenue within six months)
Board of Directors' Qualifications
·         Unpaid Advisory Board
·         Owners
·         Managers
·         Board of Directors
·         Names
  • Positions on the board
  • Extent of involvement with company
  • Background
  • Historical and future contribution to the company's success
Service or Product Line
·         Products or Services (description)
·         Competitive Advantages
·         Life Cycle of Products or Service (detailed description)
·         Life Cycle Influences
Intellectual Property
·         Copyright or Patent filings (classified as trade secrets)
Research and Development (R&D) Activities
·         R&D activities
·         Future R&D  
·         R&D Analysis
Marketing & Sales
·         Marketing strategy 
·         Market penetration
·         Internal strategy
·         Human resources
·         Acquisition strategy
·         Franchise strategy
·         Horizontal strategy
·         Vertical strategy
·         Channel of Distribution Strategy (Distribution Channels)
·         Communication Strategy (reaching customers, promotions, advertising, public relations, personal selling, brochures, catalogs and flyers, USP, Federal Express)
·         Sale Force Strategy (internal or independent representatives, number of salespeople, type of training and development for salespeople, employee pay rate)
·         Sale Activities
·         Potential Buyers (Leads to Buy First)
·         Call Strategy (number of sales call a day and the average dollar size per sale, and the average dollar size per vendor)
Funding Request
·         Funding requirement
·         Future Funding requirement (5 years)
·         How will you use the funds? (Capital Expenditures, Working Capital, Debt Retirement, or Acquisition)
·         Request Funding Amount
Financial Projections
·         Financial Projections section (allocate resources efficiently)
Historical Financial Data
·         Supply historical data (approximately 3 to 5 years)
·         Historical financial data (income statements, balance sheets, and cash flow statements for each year you have been in business (usually for up to three to five years).
Prospective Financial Data

·         Company’ Expectation (Company strategy plan for the next 5 years (quarterly), and forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets.

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