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.