Introduction to Business Plan Session 1-3 J0704-Business Plan

Introduction to Business Plan
Session 1-3
J0704-Business Plan
Why using Business Plan ?
By Failing to prepare, you are
preparing to fail – Benjamin Franklin
J0704-Business Plan
Why using Business Plan ?
A comprehensive business plan has become
a valuable internal management tool as well as
document to respond to external request.
In current usage, business plans are used for :
•Defining a new business
•Setting goals, defining objective and programs
for achieving them
J0704-Business Plan
Why using Business Plan ?
•Collecting and analyzing the financial specifics of
the business
•Supporting a loan application
•Providing vehicle for regular business review
•Collecting essential industry and marketing data
•Evaluating a new product, service or promotion
•Evaluating expansion
•Assigning a value on a business for sale or othe
legal purpose
J0704-Business Plan
Business Plan Preliminaries
Business Plan = Game plan in Sport
In surveying many successful business
plans, you will find that no one format fits
for them.
Depending upon the nature of business,
certain topics take precedence over
J0704-Business Plan
Business Plan Preliminaries
Some typical business plan outlines used by
successful business over the years are shown in the
table below.
Business Plan A
Business Plan B
•Business Summary
•Company History
•Industry Analysis
•Manufacturing plan
•Production & personnel Plan
•Products or services
•Marketing & Sales
•Management Team
•Financial Analysis
•Executive Summary
•Company Review
•Market Analysis
•Marketing plan
•Production Plan
•Management Team
•Financial History & Pro forma
•Risk & potential problem
J0704-Business Plan
Business Plan Preliminaries
Business Plan C
Business Plan D
Business Plan E
•Company Overview
•Founders and Directors
•Products and services
•Market Analysis
•Financial Information
•Executive Summary
•Investment Proposal
•Business Objective
•Products and services
•Company & Management
•Management Team
•Financial Pro forma
•Advantage to the investor
•Executive Summary
•Company Description
•Strategy & goals
•Products or services
•Marketing & Sales
•Management &
•Financial Pro Forma
•Financial Requirement
Currently, the most popular is Plan E or minor variations of it
J0704-Business Plan
Your outline determines the organization of your
business plan. It is essential for you to
consider the purpose for the structure :
1. To organize the business plan in sections in order
of their importance to your company
2. To organize the business plan in sections in order
of the importance to the reviewer, when the
reviewer is defined
3. To organize the sections of the business plan in a
logical order of development, not for the business
plan, but for the logical
development of your
J0704-Business Plan
A winning First Impression
The saying, “There’s
no second chance to
make a good first
impression,” is highly
appropriate when it
comes to the opening
sections of your
business plan and its
overall appearance.
J0704-Business Plan
• Format
– As to format, the norm is to bind your business plan in
booklet with high-quality materials
• Page layout
– Balanced and artistically pleasing
• Tabs and Titles
– Each subject, with title heading, should have its own
section and be separated with indexed partitions
keyed to the table of contents
• Color and Charts
– Charts, graphs, and illustrations are commonly
acceptable if appropriate to the text. Color is often
better than black and white
J0704-Business Plan
• Printing
– Use laser or ink-jet printers to print on paper or
stationary quality. Paper should be the brightest white
you can find
• Proofreading and copyediting
– An accurate, easy-to-read, and well-organized text
will convey professionalism and credibility
• Title page
– As the cover is opened, the reviewer should see a
professional laid on the title page. Avoid cipart and
decorative treatments.
• Table of contents
– The table of contents page usually follows the title
J0704-Business Plan
J0704-Business Plan
•Read chapter 1 on the reference book
•Search for one example of Business
J0704-Business Plan