Writing a Business Plan

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Writing a Business Plan by Mind Map: Writing a Business Plan

1. Suggested Outline

1.1. Executive summary

1.1.1. short overview of the entire b.p

1.1.2. provides a busy reader with everything that needs to be known

1.1.3. should be written last

1.2. Industry Analysis

1.2.1. Items to include

1.2.1.1. industry size, growth rate & sales projections

1.2.1.2. industry structure

1.2.1.3. nature of participants

1.2.1.4. should not exceed two single-spaced pages

1.2.1.5. key success factors

1.2.1.6. industry trends

1.2.1.7. long-term prospects

1.3. Company Description

1.3.1. general descriptions of the company

1.3.1.1. company description

1.3.1.2. company history

1.3.1.3. mission statement

1.3.1.4. products and service

1.3.1.5. current status

1.3.1.6. legal status and ownership

1.3.1.7. key partnerships (if any)

1.4. Market Analysis (Target Market)

1.4.1. items to include

1.4.1.1. market segmentation and target market selection

1.4.1.2. buyer behaviour

1.4.1.3. competitor analysis

1.5. The Economics of the Business

1.5.1. how profits are earned in the business and how many units of business's profits must be sold for the business

1.5.1.1. items to include

1.5.1.1.1. revenue drivers and profit margins

1.5.1.1.2. fixed and variable costs

1.5.1.1.3. operating leverage and its implications

1.5.1.1.4. start-up costs

1.5.1.1.5. break-even chart and calculations

1.5.2. items to include

1.5.2.1. market segmentation & targer market selection

1.5.2.2. buyer bahaviour

1.5.2.3. competitor analysis

1.5.2.4. board of advisers

1.6. Marketing Plan

1.6.1. focus on how the business will market and sell its product or service

1.7. Design & Development Plan

1.7.1. items to focus on this section

1.7.1.1. development status and tasks

1.7.1.2. challenges and risks

1.7.1.3. projected development costs

1.7.1.4. propriety issues (patents, trademark, copyrights, licenses, brand names)

1.8. Operations Plan

1.8.1. how business will be run and how products or service will be produced

1.8.2. useful way to illustrate 'back stage' & 'front stage'

1.8.3. items to include

1.8.3.1. general approach to operation

1.8.3.2. business location

1.8.3.3. facilities and equipment

1.9. items to include

1.9.1. overall marketing strategy

1.9.2. product, price, promotions & distribution

1.9.3. sales process (cycle)

1.9.4. sales tactics

1.10. Management Team and Company Structure

1.10.1. items to include

1.10.1.1. management team

1.10.1.2. board of directors

1.10.1.3. company structure

1.10.2. critical section where many investors will always look first at the executive summary and then go directly to the management team

1.10.3. to assess the strength of the people starting the firm

1.11. Overall Schedule

1.11.1. shows the major events required to launch the business

1.11.2. schedule should be in format of milestones critical to the business's success

1.11.2.1. example of milestones

1.11.2.1.1. incorporating the venture

1.11.2.1.2. completion of prototypes

1.11.2.1.3. rental of facilitaties

1.11.2.1.4. obtaning critical financing

1.11.2.1.5. obtaining the first sale

1.12. Financial Projections

1.12.1. presents a firm's pro forma (or projected) financial projections

1.12.2. items to include

1.12.2.1. sources and uses of funds statement

1.12.2.2. assumptions sheet

1.12.2.3. pro forma income statements

1.12.2.4. pro forma balance sheets

1.12.2.5. pro forma cash flows

1.12.2.6. ratio analysis

2. Who reads Business Plan and what are they looking for?

2.1. A firm's employees

2.1.1. A clearly written business plan helps the employees of a firm operate in sync and move forward in a consistent and purposeful manner

2.2. Investors & other external stakeholder

2.2.1. A firm's business plan must make the case that the firm is a good use of an investor's funds or the attention of others

3. How to write Business Plan

3.1. Structure of the Business Plan

3.1.1. follow the outline for the business plan

3.1.2. easy find critical information

3.1.3. Software Packages

3.1.3.1. lots of software package avaible in writing b.p

3.1.3.2. should avoid a boilerplate plan as it came from a "canned" source

3.1.4. Sense of Excitement

3.1.4.1. needs to project a senseof anticipation & excitement about the possibilities that sound a new venture

3.2. Content of the Business Plan

3.2.1. clear & concise information on all the important aspects

3.2.2. provide sufficient information

3.2.3. maintain reader interest

3.2.4. most plans : 25 to 35 pages are sufficient

3.3. Types of Business Plan

3.3.1. 3 types

3.3.1.1. Summary Business Plan

3.3.1.1.1. ~10-15 pages ~works best for new ventures in the early stages : to see if investors are interested in their data

3.3.1.2. Full Business Plan

3.3.1.2.1. ~25-35 pages ~works best for new ventures who need funding or financing

3.3.1.3. Operational Business Plan

3.3.1.3.1. ~40-100 pages ~primarily for an internal audience ~works best as a tool for creating a blueprint for a new venture's operations and providing guidance to operational managers

3.4. Recognizing the Elements of the Plan may change

3.4.1. important to recognize bcs the plan usually change while written

4. How to present Business Plan to investors ?

4.1. The Oral Presentation

4.1.1. must follow the direction, time

4.1.2. should be smooth and well-rehearsed

4.1.3. slides should be sharp and not cluttered

4.2. Questions and Feedback to Expect from Investors

4.3. 12 main point to include in an Investor Presentation

4.3.1. 1. Tittle slide

4.3.2. 2. Problem

4.3.3. 3. Solution

4.3.4. 4. Opportunity and target market

4.3.5. 5. Technology

4.3.6. 6. Competition

4.3.7. 7. Marketing and sales

4.3.8. 8. Management team

4.3.9. 9. Financial projections

4.3.10. 10. Current status

4.3.11. 11. Financing sought

4.3.12. 12. Summary

5. What is BP

5.1. is written narative

5.2. typically 25 to 35 pages long

5.3. describes what a new business plans to accomplish

5.4. dual-purpose document used both inside & outside the firm