4 PICS 1 WORD
B U S I N E S S
P L A N
BUSINESS PLAN
OBJECTIVES:
DEFINITION,
CHARACTERISTICS,
PURPOSE, ELEMENTS,
TYPES OF BUSINESS PLAN
DEFINITION
DEFINITION
It is a written document describing
in detail how a business — usually a
new one — is going to achieve its
objectives.
The business plan sets out a written
plan from a marketing, financial and
operational point of view. (Kenton,
2019)
DEFINITION
A business plan is a written outline
of the future of your company.
It's just a guide that details what
you're trying to do and how you're
going to do it.
It is also a road map that offers
guidance so that a company can
prepare its future and help avoid
road bumps.
Road Map
CHARACTERISTICS
BUSINESS PLAN
CHARACTERISTICS
01.
Simple/Specific
Use short sentences instead
of long complicated ones.
Use simple and
straightforward language.
Avoid using shortcuts,
jargons, and acronyms.
Use bullet points for lists.
02.
Measurable
Describe the goal clearly.
Contains concrete and
measurable objectives.
Include specific actions and
activities.
BUSINESS PLAN
CHARACTERISTICS
03.
Achievable/Attainable
Should list out attainable
goals
Should specify the goals to
achieve
Suggested number of pages
is from 20 to 30pages of text
and another 10 pages of
appendices.
04.
Realistic/Relevant
Summarize other data by
using simple business
charts or summary tables
such as bar charts, two
dimensional bars, pie
charts and Gantt charts.
Contains the company's
vision and mission.
BUSINESS PLAN
CHARACTERISTICS
05.
Time-Bound
Achieve goals within the time bound.
Setting an end date helps keep team
members on track and gives them
something to aim for.
When the completion deadline rolls
around, you can assess and
determine if the goal has been met or
if more work is needed.
PURPOSE
A business plan is an
essential roadmap for
business success. It
describes the direction the
company is taking, what its
goals are, where it wants to
be, and how it is going to
get there (Dillon and
Schmiester, 2020).
Apart from these, the value of
creating a business plan before
continuing with the actual
implementation is set out
below.
1.It defines the business.
2.It sets the goals.
3.It shows investors the
viability of the business.
4.It is used to attract business
partners.
5.It shows the organizational
structure.
6.It prepares the business
for uncertainties.
7.It outlines all the costs and
the downfalls of each
decision a company makes.
8.It presents the overview of
the industry of which the
business will be a part, and
how it will distinguish itself
from its potential
competitors.
ELEMENTS
THE EXECUTIVE SUMMARY
While appearing first in the business plan, the executive
summary is a section that is usually written last as it is a
summary of the entire business plan. It offers an overview of your
brand, including your mission statement, and specifics of what
you are offering. It is critical that your executive summary is
excellent, particularly if you're looking for funding.
THE BUSINESS DESCRIPTION
Provide information about the company you are starting up, like
what kind of problem your product or service would solve and who
the most likely customer is. This will also provide a summary of
the industry that your company will be part of, including trends,
key players in the industry and projected sales to the industry.
MARKET ANALYSIS
Business research is a vital aspect of the marketing strategy
because it helps you find the best customers or clients. Research
the primary target market for your product or service in the
market research, including geographical area, demographics, the
needs of your target audience and how these needs are being
met.
COMPETITIVE ANALYSIS
In the competitive analysis section, you will learn how successful
your direct and indirect competitors are in the marketplace, with
an assessment of their competitive advantage and how you will
set yourself apart from them. It also provides an overview of how
you can resolve any obstacles to entry into your chosen market.
SALES AND MARKETING PLAN
The sales and marketing section offers a comprehensive
description of your promotional strategy, pricing plan, planned
advertisement and promotion activities, and the advantages of
your product or service. This is where you outline your business's
unique selling proposition, describe how you are going to get your
goods and/or services to market, and how you are going to
persuade people to buy them
OWNERSHIP AND MANAGEMENT PLAN
Each section details the legal framework and management
resources of your company, including your internal management
team, external management resources and human resources
needs. Include the expertise or special skills that each person in
your management team brings to your company.
OPERATING PLAN
The operating plan offers information about how the company is
going to operate. It provides a summary of the physical location
of your company, the facilities and equipment, the types of
workers required, the inventory specifications, the suppliers and
any other relevant operational information, such as a summary of
the manufacturing process.
FINANCIAL PLAN
A summary of your funding criteria, your detailed financial
statements and an overview of your financial statements must be
summarized in a financial section. As part of the tax report is
where you show the three key financial statements in every
company; the balance sheet, the income statement and the cash
flow statement; or, in the case of a new tax, the cash flow
forecast.
APPENDICES AND EXHIBITS
At the end of your business plan, provide any additional details
that will help to build the legitimacy of your business concept,
such as feasibility reports, photos of your company, licenses, and
intellectual property rights such as patents, credit records,
resumes, marketing materials and/or contracts or other legal
agreements related to your business plan.
TYPES
01.
SUMMARY BUSINESS PLAN
10 TO 15 pages
Works best for new
ventures in the early stage
of development that wants
to test the “waters” to see
if inventors are interested
in their idea.
02.
FULL BUSINESS PLAN
25 TO 35 pages
Works best for new
ventures who are at a point
need funding for financing;
serves as a “blueprint” for
company’s operations.
03.
OPERATIONAL BUSINESS PLAN
40 TO 100 pages
It is meant primarily for an
internal audience; works
best as a tool for creating a
blueprint for a new
ventures operations and
providing guidance to
operational managers.
THANK YOU