Business plan 2
Instructions
The Business Plan project requires you to choose a business idea that will be a home-based online business. This is because the fastest growing business segment is home-based online businesses. Your business idea can be either a product or a service. Your project can also be based on an existing business idea or it can be an original idea. You should put a great deal of effort into this assignment and prepare a professional report with appropriate exhibits and supporting information, as if they were presenting it to a group of investors. The Business Plan should be in the following format:
Prepare the Final Paper using the following guidelines:
Should I include an approximate # of pages or words?
I. Title Page and Table of Contents
‒ The title page should include the company’s name and names of the
owner(s). The table of contents should include page numbers for each section of the business plan.
II. Executive Summary (not to exceed two pages)
‒ An executive summary should be written to summarize the important
components of the business plan. Even though this is the first section of the business plan, it should be written last. Its purpose is to convey to the potential financial lender or investor, in two pages or less, the relevant points of the business venture. Therefore, it is written after the entire business plan has been prepared.
A. B.
C. D.
E. F.
Company name, address, and phone number
Brief description of the owner(s) and key people, including names, addresses, phone numbers, and managerial/technical experience Brief description of the business and the products/services to be sold by the business
Brief description of your target market/overall market for the products/services
Brief description of your strategy to make the business a success Brief analysis/statement of the financial needs of the business, including the planned use of any borrowed/invested funds
III. The Industry,
‒ The purpose of this section is to assist you in describing your business
venture in a detailed but concise manner. You must clearly present the nature of the industry, the business you are in, the vision for the company, and the product or service you will offer.
A. The Industry – present a brief description of the background of the industry, the current status and the outlook for the future in which the business will operate.
1. Industry background and overview
2. Significant trends
3. Growth rate
4. Key success factors in the industry
B. The Company and Its Vision – briefly describe the business area your company is in or intends to enter, and your company’s overall mission (mission statement), and the company’s goals and objectives.
1. Describe the business you are in
2. Describe what makes the business unique
3. Describe the vision for the company
4. Company goals and objectives
C. The Products or Services – describe the products or services to be sold including all features. This section should also describe how customers will use your product or service, as well as what benefit it will provide or need it will fulfill. Emphasize any unique features of your product or service and highlight differences
The Company, Its Vision, and Its Products
between what is currently on the market and what you will offer. 1. Product or service features
2. How the product or service will be used 3. Customer benefits
4. Uniqueness
IV. Business Analysis/Strategy – the purpose of this section is to guide you through the process of analyzing your business as compared to the competition
A. SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)
B. Competitive strategy – This section describes how a business will
gain a competitive edge in the marketplace, and what distinguishes the business from the competition. In other words, determine what will make you unique according to your potential customers.
V. Marketing Strategy – the purpose of this section is to present enough facts to determine if your product or service has a substantial market in a growing industry and can achieve sales in a competitive market. Market research defines the need for the product or service, aids in predicting market share, identifies competition, provides direction for efficient use of advertising, identifies problems and opportunities, and establishes benchmarks by which to measure progress and success.
A. Target market (the group of customers whom the company plans to market its product to.)
B. Market size, makeup, and trends
1. How large is the market?
2. Is the market growing or shrinking? How fast? C. Advertising and promotion – Describe approaches the company
will use to bring its product or service to the attention of prospective buyers.
1. Media avenues used
2. Media costs
3. General publicity
D. Pricing – The pricing policy is one of the most important decisions. The price must be right to penetrate the market, maintain market position, and produce profits.
1. Costs (fixed and variable)
2. Desired profit percentage
3. Desired image (low end, high end, or somewhere in
the middle)
4. Competitors’ prices as compared to yours
E. Sales Tactics/Distribution Strategy – Describe the methods that will be used to make sales and distribute the product or service.
1. Sales techniques
2. Channels of distribution
VI. Competitor Analysis – the purpose of this section is to describe who your current competitors are, and why customers buy from them. Compare your own product or service to that of your competition on the basis of price, performance, service, and other pertinent features.
A. Existingcompetitors
1. Who are they?
2. Strengths and weaknesses
B. Potential competitors
1. Who are they?
2. What impact will they have on your business?
VII. Operating Plan – the purpose of this section is to describe the form of ownership, company structure, and compensation for any employees
A. Form of ownership (sole proprietorship, partnership, corporation, or LLC?) Include reason for choosing the specific form
B. Company structure (organization chart if have employees)
C. Compensation and benefits package (if have employees)
VIII. The Management Team – the management team is the key to turning a good idea into a successful business. Bankers and investors look for a committed
management The proposal management if applicable
A. B. C.
D.
team with a balance of technical, managerial, and business skills. should include a description of the organizational structure, key
personnel and their primary duties, as well as the board of directors,
Key personnel – describe their background, experience, and skills, as well as their exact duties and responsibilities.
Organization – in a table present the key management roles in the company and the individual who will fill each position. Management compensation and ownership – state the salary that is to be paid to each member. Set forth stock ownership planned for key personnel, as well as the amount of their equity investment. Board of directors (if applicable) – discuss the company’s philosophy as to the size and composition of a board of directors. Identify proposed board members and include a short statement about each member’s background.
IX. The Financial Plan/Forecasts – developing financial pro-formas or projections/forecasts is a vital aspect of the business plan. It is important that you take the time to thoroughly research your projections so that they will be as realistic as possible.
A. Financial statements
1. Income statement
2. Balance sheet
3. Cash flow statement
X. Loan or Investment Proposal – after identifying the financial needs of the business, address where the funds must come from. Also identify what the funds will be used for and how they will be repaid.
A. Amount requested
B. Where will the funds come from? (Lender or investor?)
C. Purpose/use of the funds
D. How will the funds be repaid? (schedule)
XI. Appendix – include any supporting documentation, resumes, etc.
XII. Reference page(s) – Please include 5 – 7 scholarly references.
