business plan outline - wordpress.com · 2011-10-11 · business plan outline entrepreneurship...
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Business Plan Outline ENTREPRENEURSHIP CLASS Plesanton High School, Pleasanton, NE
Developed by Mr. Bednar to assist students in becoming successful business
owners in the future
Business Plan Outline Content:
1) Executive Summary
2) Mission, Vision, Culture
3) Company Description
4) Opportunity Analysis and Research
A) Industry Analysis
B) Environmental Analysis
C) Competitive Analysis
5) Marketing Strategy and Plan
A) Products / Services
B) Pricing
C) Promotion
D) Place / Location
6) Management and Operations
A) Management Team; B) Research and Development; C) Physical Location; D) Facilities; E) Inventory, Production, and Quality Assurance; F) Inventory Needed
7) Financial Analysis and Projections
A) Sources and uses of capital; B) cash Tlow projections; C) Balance Sheet Projections; D) Income Statement Projections; E) Breakeven Analysis; F) Ratio Analysis; G) Risks and Assumptions; H) Tables, Graphs, Trends
8) Funding Request and Exit Strategy
A) Amount of Type of Funds requested; B) Exit Plan C) Milestones
Appendices:
Resumes;
Sample Promotional Materials;
Product Illustrations and Diagrams;
Detailed Financial Projections
Your Business Plan should include all eight items on the right.
Business Plan Tips / Directions: Your Plan should be documented in a Keynote Presentation, later to be converted to a written paper presentation.
Write for your audience (loan ofTicers, real estate agents, investors)
Demonstrate your personal interest (passion, enthusiasm, experience, emotional investment)
Be Clear and Concise – simple direct language without too many adjectives and unnecessary words
Use current data, pictures, tables, graphs and reports to back up your plan
Choose a voice and stick with it – use a third person voice, not Tirst person
Use a consistent, easy to read format
Key Terms to Include in A Business Plan
Feasibility analysis – a study to assist in making a go / no go decision based upon a close examination of product / service, market, industry, and Tinancial data
Potter’s Five Forces Analysis – Tive industry forces that impact businesses: A) bargaining power of supplier (supplier power); B) threat of new entrants (barriers to entry); C) Competitive Rivalry among Existing Firms; D) Threat of substitute products; E) Bargaining Power of Customers (Buyer Power)
Competitor Rivalry – number of Tirms competing; size of Tirms; industry size; differentiation
Barriers to Entry – capital requirements; cost advantage, economies of scale or scope; brand loyalty; distribution; public policies
Threat of Substitutes – convenience; substitute pricing; supply of substitutes; switching costs; public policies
Supplier Power – Brand reputation; substitutes of supplies; switching costs; impact of individual supplier on costs
Buyer Power – buyer size; number of buyers; product importance; delivery demands; switching costs; product differentiations; information availability
Financial feasibility – cost factors evaluated, helping to product proTit projections
Business Plan – a document that thoroughly explains a business idea and how it will be carried out; proving to investors, bankers, loan ofTicers, real estate agents, that your business idea will be proTitable
Two purposes for Developing a Business Plan – the key to raising capital; a guide to operations at the business
Mission – a concise communication strategy including a business deTinition and explanation of competitive advantage
Mission Statement – a brief written statement that informs customers and employees what an organization’s goal is, and describes the strategy and tactics to meet it
Vision – a broader and more comprehensive perspective on an organization than its mission, built on the core values and belief systems of the organization
Business Culture – the beliefs, values, and behavioral norms of an organization
Industry analysis -‐ a critical view of industry deTinition, industry size and growth (or decline) product and industry life cycle, and any current or anticipated legal or regulatory concerns
Environmental analysis -‐ a review that addresses the roles of the community, region, nation, and the rest of the world, as they relate to a business
Proof of Market – an investigation that provides evidence of a market opportunity
Target Market – the groups that are deTined by common factors such as demographics, psychographics, age, or geography are of primary interest in business
Target Audience – the proTile of customers that your business will market to
Crowdsourcing – analyzing the current market conditions of what people are interested in
Competitive Analysis – research that compares an organization with several direct and indirect competitors by name in a manner that is meaningful to targeted customers
Competitive Analysis – research that compares an organization with several direct and indirect competitors by name in a manner that is meaningful to targeted customers
Marketing Plan – a statement of the marketing goals and objectives for a business and the intended strategies and tactics to attain them
Advertising – paid promotion through media outlets
Public Relations – community activities designed to enhance an organization’s image
Direct Marketing – a method that includes telemarketing, direct mail, in person selling, and other personalized marketing to the target audience
Cash Flow Statement – a Tinancial statement showing cash receipts less cash disbursements for a business over a period of time
Balance Sheet – a Tinancial statement summarizing the assets, liabilities and net worth of a business
Asset – any item of value
Liability – a business debt
Net worth – the difference between assets and liabilities
Owner’s equity – net worth
Income statement – a Tinancial document that summarizes income and expense activity over a speciTied period and shows net proTit or loss
ProTit and loss statement – an income statement
Breakeven Point – when the volume of sales exactly covers the Tixed costs
Ratio Analysis – compare your business projections from one month to another, from one period of time to another, according to industry norms (http://www.rmahq.org)
Risks and Assumptions – an evaluation of the risks and the projections to overcome those risks, based on current assumptions about your assets and liabilities
Initial Public Offering (IPO) – Tirst offering of corporate stock to investors on the open public market
Elevator Pitch – a 15 to 30 second presentation that conveys in an engaging way what a business is proposing and why the listener should be interested