Unit-4-Format of a Business Plan-Done

Unit-4-Format of a Business Plan

Before you begin writing your business plan, following points to be kept in mind

• What service or product does your business provide and what needs does it fill?

• Who are the potential customers for your product or service and why will they purchase it from you?

• How will you reach your potential customers?

• Where will you get the financial resources to start your business?

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Typical Business Plan format

• Executive Summary

• Description of the business

• Product/Service

• Management

• Financial requirements

• Organization Description

• The product, Service or Product Line

Format of a business plan

• Description of the industry

• Description of Major Customers

• Description of your overall marketing strategy

• Production Plan

• Ownership Pattern

• Key personnel

Format of a business plan

• Accounting and Record keeping

• Financial Backup Information

• Appendices

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Executive Summary

The executive summary appears at the beginning of the business plan and gives the reader a quick, but informative overview of who you are as a person, what your business is all about

Executive summary should not be longer than two pages. One page is preferable.

Description of the business

Name of business,Location,Facility Description

Three or four top goals

Atleast one strategy to go with each goal

Product/Service

• Briefly describe what you will offer and why it is unique

• Target market

• Customer demand situation

• Competitive situation

• Sales and marketing

Management

• Who are the people in charge?

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Financial requirements

• For what purpose is external financing required

• Financial history of the business

Organization Description

• Division of responsibility,authority of each person.

• Organization chart

• Historical development

• General description of the business

The product,Service or Product Line

• Relevant importance of various products

• Comparison of competitor’s products

• Current demand situation and the factors that affect demand

• Product life cycle analysis

• Plan for new products or services in future

Description of the industry

• Industry outlook overall

• Major factors that affect this industry

• Market share analysis

• Where and to whom products will be sold

• Customer requirements and how you plan to meet those requirements

• Buying habits of customers and how will you meet them

• Description of the competition

• What do you do better?

• How do you win customers?

• What are your major competitive plans?

• Chart showing competitor strength and weaknesses

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Description of Major Customers

• Duration and terms of major contracts

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Description of your overall marketing strategy

• Pricing policy

• Method of selling,distributing and servicing your products

• Advertising,Promotion,Public Relations

• Any technology advantages your product has over competitors

• Patent ,Trademarks,Copyrights,Trade Secrets

Production Plan

• Explain how will you produce,process and deliver your product or services

• Physical facilities-own or lease? Is expansion possible?

• Key suppliers

• Manufacturing process

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Ownership Pattern

• Forms of ownership chosen

• Authority, Responsibility & decision making power

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Key personnel

• Responsibilities

• Brief job description

• Planned staff additions

Accounting and Record keeping

Preparation of income & balance sheet

Cash & Fund flow statement

Record Keeping system and who is responsible

Financial Backup Information

Historical-balance sheet, income statements of cash flow, including balance sheet and cash flow history.

Future projections-sales plan, break even analysis

Capital investment plan

Source and uses of funds

Appendices

Background financial information

Resumes of principal

Sales brochures,

Newspaper article about your business

Current customers list if any

Market research data

Photographs of your facilities

Customer feedback