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Preparing a Business Plan
What is a business plan?
A business plan is an essential written document that provides a description and overview of your company’s future. All businesses should have a business plan. The plan should explain your business strategy and your key goals to get from where you are now to where you want to be in the future.
What are the benefits of having a business plan?
It puts a plan in place when starting a new business.
Sets objectives for employees and managers Sets goals for you as an entrepreneur Helps you evaluate competitors and find your audience Assists you in making important business decisions Determine how you will find funding Identifies when/how you will profit Helps you predict problems Provides a valuation for the business Provides guidance during difficult situations Gives you the best chance of success
Business Plan Template
1. Title Page The title page captures the legal information of the business, which includes the registered business name, physical address, phone number, email address, date, and the company logo.
2. Executive Summary The executive summary is the most important section because it is the first section that investors and bankers see when they open the business plan.
Present the company’s mission.
Describe the company’s product and/or service offerings. Give a summary of the target market and its demographics. Summarize the industry competition and how the company will capture a share of the available market. Give a summary of the operational plan, such as inventory, office and labor, and equipment requirements. 3. Industry Overview
Describe the company’s position in the industry.
Describe the existing competition and the major players in the industry. Provide information about the industry that the business will operate in, estimated revenues, industry trends, government influences, as well as the demographics of the target market. 4. Market Analysis and Competition
Define your target market, their needs, and their geographical location. Describe the size of the market, the units of the company’s products that potential customers may buy, and the market changes that may occur due to overall economic changes. Give an overview of the estimated sales volume vis-à-vis what competitors sell. Give a plan on how the company plans to combat the existing competition to gain and retain market share. 5. Sales and Marketing Plan
Describe the products that the company will offer for sale and its unique selling proposition. List the different advertising platforms that the business will use to get its message to customers. Describe how the business plans to price its products in a way that allows it to make a profit. Give details on how the company’s products will be distributed to the target market and the shipping method. 6. Management Plan
Describe the organizational structure of the company.
List the owners of the company and their ownership percentages. List the key executives, their roles, and remuneration. List any internal and external professionals that the company plans to hire, and write their names, position, responsibilities, qualifications and salary.
7. Financial Plan The financial plan is an important section that will often determine whether the business will obtain required financing from financial institutions, investors, or venture capitalists. It should demonstrate that the proposed business is viable and will return enough revenues to be able to meet its financial obligations. Include the following in this section:
Sources of funding The capital and equipment needed Income Projection ( Provide details by month for the first year) 8. Appendices and Exhibits Resume of the Owner/s Business Store or Shop
