Appendix A: Guidelines For The Development of The Business Plan

Appendix A
Guidelines for the Development of the Business Plan

These guidelines are for students to create a hypotheti-
cal business plan for a good/service/business of their
Phase 2: Final Written
choice. Students should assume to have $25,000 to start Business Plan
this new business in their community.
At the end of every chapter, there will be a section Executive Summary. The executive summary
entitled “Build Your Business Plan” to assist you in the appears first but should be written last.
development of the business plan.
Business Description. This section requires
Phase 1: Development of the fleshing out the body of the business plan, including
material from your revised preliminary proposal with
Business Proposal more data, charts, and appendices. Include a descrip-
You are encouraged to submit your idea for approval tion of the proposed form of organization, either a part-
to your instructor as soon as possible. This will elimi- nership or corporation, and the rationalization of the
nate wasted effort on an idea that is not feasible in the form chosen.
instructor’s view. Business plan proposals will be eval-
uated based on their thoroughness and your ability to Industry and Market Analysis. An analysis
provide support for the idea. of the industry including the growth rate of the industry
The business proposal consists of the following and number of new entrants into this field is necessary.
elements. Identify uncontrollable variables within the industry.
Determine an estimate of the proposed realistic size
Business Description. This consists of an
of the potential market. This will require interpretation
overview of the existing good/service or the good/
of statistics from the U.S. census as well as from local
service/business you will be starting (manufacturer,
sources such as the Chamber of Commerce.
merchandiser, or service provider). This includes
developing a mission (reason for existence; overall
Competitive Analysis. Include an exhaustive
purpose of the firm) and a rationale for why you believe
list of the primary and secondary competition, along
this business will be a success. What is your vision for
with the competitive advantage of each.
this proposed product/business?
Brief Marketing Plan. (The marketing plan Marketing Strategy. Target market specifics
will be further developed as the plan evolves.) A de- need to be developed.
scription of your business/product is required. Identify Decisions on the marketing mix variables need to
the target market and develop a strategy for appealing be made:
to it. Justify your proposed location for this business.
• Price (at the market, below market, above market)
Describe how you will promote the new business and
• Promotion (sales associates, advertising budget, use
provide a rationale for your pricing strategy. Select a
of sales promotions, and publicity/goodwill)
name for this business. The name should be catchy yet
• Distribution—Rationale of choice and level of
relate to the competencies of the business.
distribution
Competitive Analysis. Identify the competi- • Product/Service—A detailed rationale of the
tion as broadly as possible. Indicate why this business perceived differential advantage of your product
will be successful given the market. offering
31
32 Part 1 Business in a Changing World
Operational Issues. How will you make or business. This must include startup costs, opening ex-
provide your product? Location rationale, facility type, penses, and estimation of cash inflows and outflows. A
leasing considerations, and sources of suppliers need to breakeven analysis should be included and an explana-
be detailed. Software/hardware requirements necessary tion of your expected financial expenditures.
to maintain operations must be determined.
Appendixes
Human Resources Requirement. Num-
ber and description of personnel needed, including re-
alistic required education and skills.
Phase 3: Oral Presentation
Financial Projections. Statement of cash Specific separate guidelines on the oral presentation
flows must be prepared for the first 12 months of the will be provided.

Appendix A: Guidelines For The Development of The Business Plan

Uploaded by

Copyright:

Available Formats

Appendix A: Guidelines For The Development of The Business Plan

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Appendix A: Guidelines For The Development of The Business Plan

Uploaded by

Copyright:

Available Formats

Appendix A

Guidelines for the Development of the Business Plan

You might also like