bizplan template

8/4/2019 BizPlan Template

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The Business Plan

for a Start-Up

Title

Prepared by

Name:

Date:

Contact

Name

Address

Phone & Fax

Email



The Business Plan for a Start-Up

A good understanding of the market is the basis for an effective business plan

Before you start to plan for the business, you must clearly define business idea and have a goodunderstanding of what you are getting into (in terms of the opportunities and threats in the intendedmarket) and your capabilities (in terms of your strengths and weaknesses vis-à-vis potential competitors).

Your knowledge of the market and appreciation of your own capabilities are extremely important indevising an effective business plan to penetrate and succeed in the market.

Contecbiz BizPlan software is designed to help you plan for your business start-up with the aim tosuccessfully compete for and penetrate the market, and to grow your business. The software helps you byguiding you in the process of formulating business strategies that are compatible with your capabilitiesand capitalizes on the market opportunities, while overcoming the market threats.

Content

The Executive Summary

Business Plan Summary

Profitability

The Business Idea

Analysis of the Market and Internal Capabilities

Business Strategy

Target MarketPositioning StrategyCompetitive StrategyGrowth Strategy

Marketing Mix StrategiesProduct/ServicePricingDistributionPromotions

Projection of Resource Requirements

Human ResourcesGeneral ServicesCapital AssetsIntangible Assets

Profit & Loss Projection

Cash Flow Projection

Accounts ReceivableAccounts Payable Net Cash Flow & Capital

Business Start-Up Action Plan



The Executive Summary

Keep your executive summary to maximum 2 pages

Your executive summary summarizes the important features of your whole business proposal. The aim of the executive summary is to sufficiently interest parties who read it (e.g., potential partners and investors)so that they are willing to devote more time and effort to find out the details of your proposal and hence,

read the rest of your business plan proposal.

BUSINESS PLAN SUMMARY

Business Idea &

Uniqueness

ATTRACTIVENESS

Sizeable & Growing

Market Gap

Competitive

Advantages

&

Internal Capabilities

Favorable

Environment

CHALLENGES

Threats &

Weaknesses

BUSINESS STRATEGY

Competitive Strategy

Growth Strategy



PROFITABILITY Year

1 2 3

Revenue (RevT)

Gross Profit(GPT)

$

%

Operating Expenses

(OEX)

Asset Depreciation

(DCA + DIA)

Operating Profit (OP)

Breakeven Revenue(BER)

Breakeven Units

(BEU)

Operating Cash Flow

(OCF)

Capital Assets &

Intangible Assets

(CAT) + (IAT)

Service Deposits

(GSDT)

Capital Investment

(Cap)

Return on Investment

(ROIB)

Payback Period (PP)



The Business Idea

A promising business idea is one that is unique in some important aspects

For a start, describe “what is your core business idea?” More importantly, explain why your businessidea is special or unique. A business idea that is unique in some important aspects is generally more promising.

THE BUSINESS IDEA

Core Idea

Uniqueness



Analysis of the Market and Internal Capabilities

Knowing the market and your capabilities is critical for planning business strategies

This section guides you in performing the analysis of the potential market segments for your products/services to identify the opportunities for your business idea and also the threats that you mayface, and to assess your capabilities to capitalize on the market opportunities or overcome the threats, in

order to succeed in the business. If you have identified more/less than 3 potential market segments,simply add/delete another column accordingly.

MARKET &

CAPABILITIES

Potential Market Segments

1 2 3

ATTRACTIVENESS OF SEGMENT

Size & Growth

Market Gap

CompetitiveAdvantages

Human Capital,

Specific Assets, &

Resources

Opportunities:

Environmental,

Supply, and Industry

Factors

CHALLENGES OF SEGMENTCompetitive Reactions

Weaknesses

Threats:

Environmental,

Supply, and Industry

Factors



Business Strategy – Target Market

Choose your target market(s) to focus your resources and efforts

From the potential market segments identified and evaluated above, you can now proceed to choose thetarget market segment(s) that you want to sell to.

TARGET &

RATIONALE

Target Markets

1 2 3

Target Market

Rationale



Business Strategy - Positioning Strategy

Formulate positioning strategy in terms of product/service and price positions

After selecting your target market(s), you should now decide on the positioning strategy in terms of the product/service position and the price level in each of these markets. The question here is how do youwant your customers to perceive your products/services and hence, how do you create the desired

customer perceptions of your products/services through the marketing mix strategies in products/services, pricing, promotions, and distribution strategies. Effective positioning leads to a higher perceived value of your product offerings.

POSITIONING

STRATEGY

Target Market(s)

1 2 3

Positioning Attributes

Benefits to Customer

Price Positioning

Superior Value

Delivery

Competitive

Advantages

Sustainable

Competitive

Advantages

Unique Sales

Proposition (USP)



Business Strategy – Competitive Strategy

Formulate your competitive strategy to penetrate and hold the target market

This section helps you design strategies to enter and penetrate your target market and outsmart your competitors. The key questions you should think of while answering this section are:- How to compete successfully for the market that you target?

- How to protect and hold on to your position against competition?

STRATEGIC

OBJECTIVES

COMPETITIVE STRATEGY

Target Market (1) Target Market (2) Target Market (3)

Market Entry and

Penetration

Preemptive and

Deterrence



Business Strategy – Growth Strategy

Plan to grow your business

Your growth strategy guides you in increasing and expanding your business over the next 3 to 5 years.This section helps you identify potential strategies to grow your business. You can explore increasingmarket share in your targeted markets, developing new products for your targeted markets, introducing

your products to new markets, or diversifying your business to venture into new markets with new products.

GROWTH

STRATEGY

Year 1 Year 2 Year 3-5

Market Penetration

Product Development

Market Development

Diversification



Marketing Mix Strategies – Product/Service

Formulate marketing strategy to be consistent with your business strategy

You can now design your marketing mix strategy in terms of the product/service, price, distribution, and promotions strategies. It is extremely important that your marketing mix strategies are inline with your business strategy that you have formulated earlier in terms of target market(s), positioning, competitive

and long term growth strategies.

Design product/service offerings to meet the demand of each of the target markets

This section guides you in designing your product/service offerings. For each of your target markets, youshould identify and describe explicitly your core products/services, consider different product/servicevariations that maybe offered, and explore bundling different products together to sell as a package. If you have identified more/less than 5 product/service offerings or bundles for each target market,add/delete rows accordingly.

PRODUCT/

SERVICE

Target Markets

1 2 3

Core

Products/Services

Product/Service

Presentation

Product/Service Line

Product/Service 1

Product/Service 2

Product/Service 3

Product/Service 4

Product/Service 5

Product/Service Bundle

Bundle 1

Bundle 2

Bundle 3

Bundle 4

Bundle 5



Marketing Mix Strategies – Pricing

The pricing for your products/services must be consistent with your business strategy

This section guides you in setting the prices for your product/service offerings that you have decidedearlier. It is important that your pricing is consistency with your business strategy (i.e., product and price positioning, competitive, and growth, strategies), and acceptable by your target market(s). If you have

more/less than 5 product/service offerings or bundles, add/delete rows accordingly.

PRICING Unit List

Price (P/ut)

Unit Cost

(COGS/ut)

Unit Profit Margin (GP/ut)

Var.(VC/ut)

Fix(FC/ut)

(a) % (b) %

Product/Service Offerings

1

2

3

4

5

Product/Service Bundle

1

2

3

4

5

End-User

Discounts

(UD%)

End-User

Payment

Terms



Marketing Mix Strategies – Distribution

Formulate channel strategy taking into account appropriation risks and/or agency costs

Your distribution strategy should look at the best ways to reach your customers effectively andefficiently. This section guides you in deciding on the different distribution channels that you may use.

DISTRIBUTION Target Markets

1 2 3

Channel Strategy

Rationale

Trade Discounts (TD%) & Payment Terms



Marketing Mix Strategies – Promotions

Plan for a cost effective and affordable promotions strategy

This section guides you in planning how best to promote your products/services to your target market.Different communications objectives and target markets require different ways to promote. Thechallenge for a start-up, usually with limited resources, is to design the most cost effective and affordable

way to promote to achieve the desired communication objectives, given the target market. Hence, always be mindful if you can afford the resources for any of the promotions activity considered.

Specify the promotions mode for each communication objective and target market

For each of the communication objectives and target market, describe which one or a combination of thefollowing promotions mode you will use to achieve the stated communication objective.o Advertising: State explicitly the type of advertising media that you will use.

o Publicity: Describe how you can create newsworthiness to generate publicity.

o Personal Selling: Consider whether this is cost effective and feasible for your business.

o Sales promotions: Describe what forms of sales promotions that you will use.

o Others – e.g., new media, internet, etc.

COMMUNICATIONS

OBJECTIVES

Promotions Mode for Target Market

1 2 3

Create Awareness

Inform & Educate

Persuade

Remind

Generate Leads

Assist Personal Sales

Effort

Build Brand Image

and Loyalty



Projection of Resource Requirements – Human Resources

Identify the human resources that you require to run the business

This section guides you in determining the human resources required for running the business and the projected wages. If you have more/less than 3 positions for each type of personnel, add/delete rowsaccordingly.

Human Resource & Wage Projection (HRW)

Year XXX Months

1 2 3 4 5 6 7 8 9 10 11 12

Management Personnel

Positions Number and Amount $

1 No.

$

2 No.

$

3 No.

$

Total No.

$

Technical Personnel


1 No.

$

2 No. $

3 No.

$

Total No.

$

Sales and Marketing Personnel


1 No.

$

2 No.

$

3 No.

$

Total No.

$



Accounting and Finance Personnel


1 No.

$

2 No.

$

3 No.

$

Total No.

$

Production Personnel


1 No.

$

2 No.

$

3 No.

$

Total No.

$

Other Personnel

Positions Amount $

1 No.

$

2 No.

$

3 No.

$

Total No.

$

Total HR &

Wages

(HRWT)



Projection of Resource Requirements – General Services

Identify the general services that you require to run the business

This section guides you on determining the general services required for running the business and the projected expenses on such services. If you have more/less items, add/delete rows accordingly.

General Service Projection

Year XXXMonths

1 2 3 4 5 6 7 8 9 10 11 12

General Service Expenses (GSE)

Items Number and Amount $

1 Ut.

$

2 Ut.

$

3 Ut.

$

4 Ut.

$

5 Ut.

$

6 Ut.

$

Total GSE

(GSET)

$

General Service Deposits (GSD)

Items Amount $

1 Ut.

$

2 Ut.

$

3 Ut.

$

4 Ut.

$

Total GSD

(GSDT)

$



Projection of Resource Requirements – Capital Assets

Identify the capital assets that you require to run the business

This section guides you on determining the capital assets required for running the business and the projected expenditures on such assets. If you have more/less than 3 items for each type of capital assets,add/delete rows accordingly.

Capital Asset Projection (CA)

Year XXX Months

1 2 3 4 5 6 7 8 9 10 11 12

Office Assets


1 Ut.

$

2Ut.

$

3 Ut.

$

Total $

Service Center Assets


1 Ut.

$

2 Ut.

$

3 Ut.

$

Total $

Factory Assets


1 Ut.

$

2 Ut.

$

3 Ut.

$

Total $

Retail Outlet Assets


1 Ut.



$

2 Ut.

$

3 Ut.

$

Total $

Warehouse Assets


1 Ut.

$

2 Ut.

$

3 Ut.

$

TotalUt.

$

Other Capital Assets

Items Amount $

1 Ut.

$

2 Ut.

$

3 Ut.

$

Total $

Total Capital

Assets

(CAT)

$



Projection of Resource Requirements – Intangible Assets

Identify the intangible assets that you require to run the business

This section guides you on determining the intangible assets required for running the business and the projected expenditures on such assets. If you have more/less items, add/delete rows accordingly.

Intangible Asset Projection (IA)

Year XXX Months

1 2 3 4 5 6 7 8 9 10 11 12

Intangible Asset

Items

Number and Amount $

1 Ut.

$

2 Ut.

$

3 Ut. $

4 Ut.

$

5 Ut.

$

6 Ut.

$

7 Ut.

$

8 Ut.

$

9 Ut.

$

Ut.

$

Ut.

$

Total

Intangible

Assets

(IAT)

$



Profit & Loss Projection

The profit and loss statement is a forecast of the financial returns and viability of your business. It canalso identify areas that you can improve and/or refine in your business. Your projections should be basedon the analyses and strategy decisions that you have detailed in all the previous sections, and notdetermined independently and/or arbitrarily. This means that, if there are questions raised about the

validity of your profit and loss projections, you must be able to substantiate them with the analyses andstrategy decisions that you have made earlier. If you have more/less items for your profit and loss projection, add/delete rows accordingly.

Year XXX Months

1 2 3 4 5 6 7 8 9 10 11 12

Revenue (Rev)

Sources Amount $

1

2

3

4

5

Total Rev (RevT)

Gross Profits (GP)

Sources % Amount $

1

23

4

5

Total GP$

(GPT)

Marketing Expenses (ME)

Items Amount $

1 Selling

2 Advertising

3 Promotions4 Publicity

5 Sponsorship

6

7

Total ME (MET)

Wages (HRWT) and General Services (GSET)



Items Amount $

1 Wages (HRWT)

2 General Services

(GSET )

Usage Fees for Intangible Assets (FIA)

Items Amount $

1 Franchising

2 Licensing

3

4

5

Total FIA (FIAT)

Other Expenses (EX)

Items Amount $

12

3

4

5

Total EX (EXT)

Total Operating

Expenses (OEX)

Asset Depreciation

Capital Assets (DCA)

Intangible Assets(DIA)

Earnings

Operating Profit

(OP)

Non-Operating

Income (NOI)

Non-Operating

Charges (NOC)

Earnings before Tax

(EBIT)



Cash Flow Projection – Accounts Receivable

The cash flow projection details your expected cash transactions over a period of time and hence, helpsyou plan your cash requirements over the period and your working capital requirements at different stagesof your business. This is important so as to avoid any disruptions to your business due to inadequate cashavailability. The accounts receivable refers to the income that you expect to receive from your main

business activities.

The faster you get paid by your clients, the better – cash is king!

When you sell and/or license your products/services, what is important is when you will receive payment – always remember, a sale is not a sale until payment is collected! Your cash flow will be criticallyaffected by the payment terms that you extend to your clients, whether it is on the basis of "cash ondelivery", "X-Days credit term", and/or "consignment". If you have more/less items for the accountsreceivables projection, simply add/delete rows accordingly.

Accounts Receivable (AR)

Year XXX Months

1 2 3 4 5 6 7 8 9 10 11 12

Sales (RS) Amount $

1 Cash Sale

2 Credit Sale

X Days

3 Consign Sale

X Days

Total Sales

Receivable (RST)

Others (RO) Amount $

1 Royalties

2 Licensing Fees

3

4

5

Total Other

Receivables

(ROT)Total Accounts

Receivable (AR T)



Cash Flow Projection – Accounts Payable

The longer the credit terms that you get from suppliers, the better!

Your cash flow will also be critically affected by the payment terms that your suppliers extend to you,whether it is on the basis of "cash on delivery", "Y-Days credit term", and/or "consignment". However,in contrast to accounts receivables, for accounts payable, the longer the credit terms that your suppliers

extend you, the better. If you have more/less items for the accounts payable projection, simply add/deleterows accordingly.

Accounts Payable (AP)

Year XXX Months

1 2 3 4 5 6 7 8 9 10 11 12

Supplies (PS) Amount $

1 Cash

2 Credit

X Days

3 Consign

X Days

Total Supplies

Payable (PST )

Operating Expenses

(OEX)

Others (PO) Amount $

1

2

3

4

5

Total Other Payables

(POT)

Total Accounts

Payable (APT)



Cash Flow Projection – Net Cash Flow & Capital

Based on your financial projections computed earlier, the net cash flow and capital requirement can now be readily derived.

Net Cash Flow

Year XXX Months1 2 3 4 5 6 7 8 9 10 11 12

Operating Cash Flow (OCF)

Total Accounts

Receivable (AR T)

Total Accounts

Payable (APT)

Operating Cash Flow

(OCF)

Investment on Assets

Capital Assets

(CAT)

Intangible Assets

(IAT)

Service Deposits

(GSDT)

Total Assets

(TA)

Business Funding

Sources Amount $

1 Equity

2 Loans

3 Grants

4

5

Total Capital (Cap)

Net Cash Flow (NCF)



Business Start-Up Action Plan

Set the schedule to achieve key milestones and the activities to be undertaken

The business action plan is a schedule of the activities to be undertaken to implement your business idea.Based on your business plan, identify the key milestones for your business, and set a deadline for theachievement of these milestones. For each key milestone, determine the activities to be undertaken to

achieve the milestone, the time by which you should complete each activity, and the person responsiblefor achieving the milestone and completing the activity. If you have more/less items for action,add/delete rows accordingly.

Year XXX Months Person

1 2 3 4 5 6 7 8 9 1

0

11 12

Complete Business Registration

Complete R&D

Complete Product/Service Development and Trials

Secure Suppliers of Products/Services

Complete Production Set-Up

Begin Product/Service Launch and Marketing

Other Milestones and Activities

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