Business 357: Business Aspects for Engineers
Business Plan Format
Although each company's business plan will be unique, reflecting an entrepreneur's
individual circumstances, the following outline may be used.
Key:
Aldo
Se Ge
Caleb
Emily
Due Dates:
October 30th
November 23th
December 4th
I.
Executive Summary (not to exceed two pages)
A. Company name
B. Brief description of the business, its products and services, and the customer
problems they solve
C. Brief overview of the market for the company's products and services
D. Brief overview of the strategies that will make the firm a success
E. Brief description of the managerial and technical experience of key people
F. Brief statement of the financial request and how the money will be used
II.
Vision and Mission Statement
A. Entrepreneur's vision for the company
B. Values and principles on which the business stands
III.
Industry Profile and Overview
A.
Industry background and overview
B.
Major customer groups
C.
Regulatory restrictions
D.
Significant trends
E.
Growth rate
F.
Barriers to entry and exit
G.
Key success factors in the industry
H.
Outlook for the future
IV. Business Strategy
A. Desired image and position in market
B. Company goals and objectives
1. Operational
2. Financial
3. Other
C. SWOT analysis
1. Internal Strengths
2. Internal Weaknesses
3. External Opportunities
4. External Threats
D. Competitive strategy
1. Cost leadership
2. Differentiation
3. Response
V. Company Products and Services
A. Description
1. Product or service features; uniqueness
2. Customer benefits
3. Warranties and guarantees
B. Patent or trademark protection (if any)
C. Future product or service offerings
VI. Marketing Strategy
A. Target market
1. Problem to be solved or benefit to be offered
2. Demographic profile
3. Other significant customer characteristics
B. Customers' motivation to buy
C. Market size and trends
1. How large is the market?
2. Is it growing or shrinking? How fast?
D. Advertising and promotion
1. Message
2. Media
3. Budget
4. Plans for generating publicity
E. Pricing
1. Desired image in market
2. Comparison against competitors' prices
3. Discount policy
4. Gross profit margin % anticipated
F. Distribution strategy - Channels of distribution
G Test market results (if any)
VII. Competitive Analysis
A. Existing competitors
1. Who they are
2. Strengths
3. Weaknesses
B. Potential competitors: companies that might enter the market
1. Who they are
2. Impact on the business if they enter
VIII. Description of Management Team
A. Key managers and employees
1. Their backgrounds
2. Experience, skills, and know‑ how they bring to the company
B. Resumes of key managers and employees (suitable for an appendix)
C. Future additions to management team
D. Board of directors or advisers
IX. Operations
A. Legal form of ownership chosen and rationale
B. Company structure (organization chart)
C. Decision making authority
D. Significant compensation and benefits packages
E. Description of production or process (if applicable)
1. Raw materials
2. Costs
3. Key supply chain components
F. Facilities:
1. Location: where and rationale
2. Layout: type and rationale
3. Possible setup constraints
G. Capacity issues and/or constraints
X. Financial Forecasts (suitable for an appendix)
A. Key assumptions
B. Financial statements
1. Income statement (Annual, 3 years)
2. Balance sheet (Annual, 3 years)
3. Cash flow statement (Quarterly, 3 years)
C. Break‑ even analysis
D. Ratio analysis
XI. Loan or Investment Proposal
A. Amount requested – Equity and/or Debt
B. Purpose and uses of funds
C. Repayment or "cash out" schedule (exit strategy)
D. Timetable for implementing plan and launching the business
XII. Appendices (supporting documentation, including market research (if applicable),
financial statements, organization charts, resumes, and other pertinent items)