Importance of a business plan for entrepreneurs
A business plan for entrepreneurs is a document that lists the objectives and goals of the business. It includes information on how the business will specifically achieve its goals, including sales, marketing and product development. It may outline each individual goal for the business, including where funds will come from, how employees will contribute to the goals and how the business can profit.
Starting a business can be risky, but also rewarding. By creating a business plan ahead of time, you can determine the steps you need to take, as well as the intended goals of the business. When you create a business plan, this is your opportunity to consider the requirements and potential of your business idea. A business plan can help you pinpoint specific goals and tasks.
Many consider a business plan to be a blueprint for a business.
There are many reasons why it is important for entrepreneurs to have a business plan. A few of these reasons include:
It puts a plan in place when starting a new business
A lot goes into starting a new business. In addition to coming up with a business idea, you also need to solidify the specifics of the business, like what services or products you will sell, where you will do business and who will work for the company. A business plan can help provide guidance in this process, which can also help avoid mistakes along the way. It can offer you insight into the steps you need to take to open your business, as well as the resources you will need to obtain.
To conduct the necessary research
You might create a business plan before even deciding to open a business.
Writing a business plan requires that you conduct the necessary research, which can be helpful in deciding if starting a business makes sense. You might also create a business plan if you intend to take your existing business in a new direction.
By writing out the details and finances of the new plan, you can determine if a shift will be profitable. This includes defining your market, pinpointing who your customers are and how you will reach them.
To evaluate competitors and find your audience
Another part of creating a business plan is researching the current companies in the industry in which you want to work. By identifying competitors and where they are not currently reaching customers, you can better predict how you will reach them. It can also help you choose your target audience.
Set objectives for employees and managers
Setting and measuring objectives will ensure that employees and managers are clear on their duties. This can also help you choose the right staff for your business by setting clear expectations and objectives. You might also use this information to help with training new employees and managers.
A business plan sets the expectations of the business from the beginning. If you change or update your goals, a business plan can help share these new objectives, providing structure and accountability.
Sets goals for you as an entrepreneur
Setting clear goals is also helpful for you as an entrepreneur. You can use a business plan to list specificgoals that you want to achieve, along with target dates. This can provide you with a guide to structure your daily responsibilities, while also providing you with accountability as an entrepreneur.
To determine when new employees are needed
As you expand your business and increase your revenue, you will need additional employees to assist with the daily tasks. But, hiring people before you’re ready to expand can reduce your profits.
A business plan can help you evaluate the right time to bring on additional staff. It can also help with setting clear duties and expectations for each position. You can also use your plan to determine what skills to look for when hiring.
Assists you in making important business decisions
Decision-making is an important task as an entrepreneur. Some decisions, like when to rent a new space or expand the business, are not always easy to make. With a clear business plan in place, you can determine the specific times or goals you must meet to make these important decisions.
To know when to sell your business
You may decide to sell your business and move onto other ideas. But, deciding when to sell can be a difficult decision. Setting clear guidelines for what goals and achievements you would like to reach with your business can help you set a timeline, knowing when it is the right time to sell.
The information in your business plan can also be helpful when selling, as it lays out the achievements, as well as the plans for the business, which can contribute to its value.
To determine how you will find funding
You may decide to take out a business loan or invite investors to be a part of your business. New businesses often require funds and a business plan can help you present your ideas to potential investors. If you apply for a business loan, you may need a thorough business plan to demonstrate your business idea to the bank lender too. A business plan can also help you decide how much money you will need to start, and operate, your business.
To understand when/how you will profit
Salary is not always clear as an entrepreneur. But, whether you are providing investors with an estimate of when they can expect a return on profit, or you want to know how long until you will profit, you will need a business plan.
A business plan lists the expected costs of the business, as well as the revenue. As long as you meet the financial goals listed in the business plan, you can predict when and how you will make a profit. — www.indeed.com
Tigere lists Zim’s first REIT on ZSE
Bribe-taking cops warned, related articles.
Striking the right chord
The zimbabwe question: is it time to let zimbabwe rejoin the commonwealth, enabling organisational performance, sadc not ready for trading under afcfta, privacy overview.
- Starting a Business
- Growing a Business
- Business News
- Science & Technology
- Money & Finance
- Green Entrepreneur
- United States
- Asia Pacific
- Middle East
- South Africa
Copyright © 2023 Entrepreneur Media, Inc. All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media Inc.
How to Write a Business Plan Learn the essential elements of writing a business plan, including advice and resources for how to write and conduct each section of your business plan.
Apr 25, 2023 Originally published Oct 17, 2017
No business can be successful without a solid business plan. In fact, a business plan could be the thing that makes or breaks your entrepreneurial enterprise, especially if you haven't started a successful business in the past.
Let's break down what a business plan is, why it's important, and a step-by-step guide on how to write one in detail.
What Is a Business Plan?
Put simply, a business plan is a detailed outline explaining what a business will be, how it will work, and how it will bring in money. Business plans can range heavily in terms of length and complexity, but they all include an explanation of what the business will do and how it will turn a profit, dealing with everything from financial statements and pricing to potential customer segments and business development.
Think of business plans as the guiding documents for for-profit organizations. A business plan guides business owners and employees or other executives at existing businesses and helps inspire investor confidence when seeking financing in the earliest days of a business's life. There are a few types of business plans, but they all do the same things.
Related: An Introduction to Business Plans
Why Is a Business Plan Important?
A small business plan is important for any new enterprise, regardless of industry or niche. Why?
By far, the most crucial thing a good business plan does is improve investor confidence. When an entrepreneur or startup executive needs to secure funding and business loans, they have to convince investors that their business is worth investing in. It's impossible to do that without a solid business plan explaining:
- What the business will provide or make
- How the business will make money (i.e., financial projections for a new business)
- Who the business will advertise to
- And similar forecasts or discussions lenders need to see
By looking through a business plan, investors (both individuals and large firms) can tell whether a business owner (or would-be entrepreneur) has a good idea or is merely flailing in the wind.
In addition, a business plan is important since it will help guide your actions as a business owner and executive. With a business plan to keep your head on straight, you'll know what to do, how to scale your business, and what objectives you need to meet in order to achieve the goals outlined in your business plan.
Elements of a Traditional Business Plan
Business plans are usually comprised of several key elements. These include:
- A title page , which breaks down a rough overview of the startup business and its name
- An executive summary, which essentially describes what you want the business to achieve as its owner
- The business description, which describes the business, its structure, what it sells or produces, and related information. It should also include the value proposition and any intellectual property you have for your business idea
- Market research and strategies, which will help convince potential investors that you know how you will market and sell your products to your target audience
- Management and personnel, which should outline your projections for the employees or labor force you'll need to achieve your business goals. If you plan to hire team members, don't worry about stating too much about them here
- Financial documents, including any capital you have already raised, the funding you need to get your business off the ground, and so on. This can include a balance sheet or cash flow statements if you already have a financial plan or have operated your business for some time
- A competitive analysis page , breaking down the status of your competitors in the same industry. This can include company descriptions or business models based on what you know
- A design and development plan, exploring how you will design and develop your business for ultimate success. Think of this as a roadmap or mission statement for how your brand will hit milestones and gain a competitive advantage over other brands
- An operations and management plan , which should explore and explain how you will run and operate your business as its owner or chief executive
With each section of your business plan, an investor or venture capitalist can determine the viability of your sole proprietorship, LLC, or other business.
Related: How to Write a Business Plan
Now that you understand why you need a business plan and you've spent some time doing your homework gathering the information you need to create one, it's time to roll up your sleeves and get everything down on paper. The following pages will describe in detail the seven essential sections of a business plan: what you should include, what you shouldn't include, how to work the numbers and additional resources you can turn to for help. With that in mind, jump right in.
Within the overall outline of the business plan, the executive summary will follow the title page. The summary should tell the reader what you want. This is very important. All too often, what the business owner desires is buried on page eight. Clearly state what you're asking for in the summary.
Related: How to Start a Business With (Almost) No Money
The business description usually begins with a short description of the industry. When describing the industry, discuss the present outlook as well as future possibilities. You should also provide information on all the various markets within the industry, including any new products or developments that will benefit or adversely affect your business.
Business Plan Guide "
Before writing your plan.
- How Long Should Your Plan Be?
- When Should You Write It?
- Who Needs A Business Plan?
- Why Should You Write A Business Plan?
- Determine Your Goals and Objectives
- Outline Your Financing Needs
- Plan What You'll Do With Your Plan
- Don't Forget About Marketing
Writing Your Business Plan
- How To Write A Business Plan
- The Ingredients of a Marketing Plan
- Updating Your Business Plan
- Enhancing Your Business Plan
Business Plan Tools
- Business Plan Software
- Books and How-to Manuals
Business Plan Templates
- Sample Business Plans
Market strategies are the result of a meticulous market analysis. A market analysis forces the entrepreneur to become familiar with all aspects of the market so that the target market can be defined and the company can be positioned in order to garner its share of sales.
The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle.
Design & Development Plan
The purpose of the design and development plan section is to provide investors with a description of the product's design, chart its development within the context of production, marketing and the company itself, and create a development budget that will enable the company to reach its goals.
Operations & Management Plan
The operations and management plan is designed to describe just how the business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the various responsibilities of the management team, the tasks assigned to each division within the company, and capital and expense requirements related to the operations of the business.
Financial data is always at the back of the business plan, but that doesn't mean it's any less important than up-front material such as the business concept and the management team.
Want to see some of these principles in action? You can check out business plan templates in this detailed guide . Feel free to use some of these templates when drawing up business plans for your organization in the future!
As you can see, business plans aren't as complex as you may have initially thought. Furthermore, they are important parts of any business enterprise. Don't forget to write a business plan for your upcoming endeavor before seeking funding!
For more guides, resources, and information, check out Entrepreneur !
Editor's Pick Red Arrow
Related topics red arrow, most popular red arrow, 'i am just floored': woman discovers she won $1 million lottery prize while checking her email at work.
Initially, she thought the email was a scam, but went to lottery headquarters and walked away with a six-figure check after taxes.
'I'm Not a Very Good Businessman': Kevin Costner Is Risking a Ton of His Own Money on New Project
The "Yellowstone" star discussed how he bankrolled his new epic movies — and his accountant isn't happy.
To Create an Enriching Work Environment, Leaders Need to Try This Approach
Let's explore the transformative power of fierce compassion: an approach that blends strength with empathy to foster a purpose-driven, trustful and caring workplace environment.
Daymond John Slams 'Shark Tank' Contestants With Restraining Order: 'It Is Unfortunate That It Has Come to This'
Bubba's Q boneless ribs first appeared on Season 5 of the hit ABC show.
A Father Decided to Change When He Was in Prison on His Son's Birthday. Now His Nonprofit Helps Formerly Incarcerated Applicants Land 6-Figure Jobs.
Sean Hosman, founder of the nonprofit Persevere, sees technology as "the great equalizer" — and is harnessing its power to lower recidivism rates.
Dam Destruction in Ukraine Sends Global Prices of 2 Common Food Crops Back Up
The flooding threatened hundreds of thousands of residents and a large nuclear power plant.
Successfully copied link
- Customer Reviews
- Net 30 Account
- Wise Services
- Steps & Timeline
- Work at a Glance
- Market Research at a Glance
- Business Plan Writing Services
- Bank Business Plan
- Investor Business Plan
- Franchise Business Plan
- Cannabis Business Plan
- Strategic Business Plan
- Corporate Business Plan
- Merge and Acquisition Business Plan (M&A)
- Private Placement Memorandums (PPM)
- Sample Business Plans
- Professional Feasibility Study
- PowerPoint Presentations
- Pitch Deck Presentation Services
- Business Plan Printing
- Market Research
- L-1 Business Plan
- E-2 Business Plan
- EB-5 Business Plan
- EB-5 Regional Centers
- Immigration Attorneys
- Nonprofit Business Plan
- Exit Business Planning
- Business Planning
- Business Formation
- Business License
- Business Website
- Business Branding
- Business Bank Account
- Digital Marketing
- Business Funding Resources
- Small Business Loans
- Venture Capital
- Business Credit Cards
- Net 30 Apply
Coffee Shop Business Plan Sample
Fill the form to download coffee shop business plan example.
The coffee shop business plan is an essential tool for coffee shop owners and those who want to open a coffee shop.
A coffee shop business plan will give you an idea of how much a coffee shop will cost, how those costs will be funded, and how much money you expect to make from it.
When it’s ready, you can show it to investors, banks, partners, and anyone else who can help you open a cafe. Getting this document right is worth your time and effort, so make sure you do it right.
After helping entrepreneurs in the USA launch more than 400 independent coffee shops , we know that a business plan is vital for success.
We are here to help you write a coffee shop business plan.
Here’s a business plan sample pdf and a template that will give you some inspiration for what should be included in your coffee shop business plan.
Coffee Shop Business Plan Template
A coffee shop business plan template should include the following sections. Let’s look at a coffee shop business plan template and discuss what each section should include.
- Executive Summary
- Competitor Analysis
- SWOT Analysis
- Marketing Plan
- Funding Request
- Management Summary
1. business plan title page.
Start with the legal name of your business. Provide the address of a likely location or website if you already have one. Include your company logo at the top or bottom of the title page. On the title page, there should also be a table of contents listing each section and its page number.
What makes a great cover page for a business plan?
Visit our page on business plan cover page examples to download our free business plan cover page templates and create a beautiful cover page yourself.
2. Executive Summary
The Coffee Shoppe will be a business service provider based in Miami, Florida. Founded by Mrs. Nancy Harrigan. The Coffee Shoppe will offer a menu of services which include coffee, lattes, capacinos, expressos, deli sandwiches and baked goods.
While these services will comprise the initial market entry core, long-term plans call for the integration of storage and relocation capabilities to the business mix.
The local area has been in dire need of a service of this type for some time and The Coffee Shoppe plans to adequately serve them through the consistent delivery of real-time hospitality.
The market is definitely filled with opportunities but in order to capitalize on them, a strong infusion of working capital must be acquiesced.
The founder projects needing 100K for their business venture with repayment being made out of the profits that are driven annually. Funding that is secured will be used in a variety of areas including marketing, logistics, management, site procurement as well as the day to day operations of the organization.
The marketing for The Coffee Shoppe will be done through a variety of mediums including the Internet, mass media, print and networking. Internet efforts will center on the creation of a user-friendly website that clearly list all of the core services that will be offered.
To read the full executive summary, click here to download the PDF
Useful Resource: How to write an executive summary for a business plan
3. Market Overview
The Company is entering the market at a time when the industry in which it operates is experiencing substantial growth. According to market research firm IBIS World, the Coffee & Snack Shops Industry has seen an average annual growth rate of 5.8% over the last five years, positioning industry revenue to be around $47.7 billion in
2018. The Coffee & Snack Shops industry is projected to see an average annual growth rate of 1.4% over the next five years, placing industry revenue at $51 billion in 2022.
4. Competitive Analysis
The following is a listing of the primary competitive advantages of the Companv upon entering the market
- Congenial customer service
- A central location wit greater foot traffic Parking facility available for customers
- Soothing ambiance for calm eating
- Excellent visibility from the road
- Aggressive marketing campaian
- Understanding visitors food choices and integrating the same in the menu
- Inviting feedback from customers
- Key understanding of trends and flavor
- The company will hire experienced management and staff
5. Swot Analysis
The following is an analysis of the SWOT analysis of the coffee shop business as well as the opportunities and threats present in the market.
- Location. The location is one of the primary strengths of the The Coffee Shoppe business model as there are currently no other organizations that have the capabilities to offer the types of services that will be introduced to the market.
- The founder. Founder Nancy Harrigan is a seasoned, strategic business professional with an eye towards success, profit and achievement. These qualities will form the basis of the The Coffee Shoppe brand and be a catalyst that propels the success of the operation.
- Servicing of a need. The services that will be brought to the local residents of Miami are one that is truly needed. The fact that The Coffee Shoppe will be satisfying this need will endear the organization to the customer base and allow for consistently strong growth.
- Lack of funding. Funding is the sole weakness of the The Coffee Shoppe business venture. While funding is a weakness it should be noted that the founder is confident that if adequate funding is secured, she will be able to develop a viable business.
- Limited competition. The limited amount of local competition is the primary opportunity for The Coffee Shoppe as it will give the organization the opportunity to develop a loyal customer base while erecting barriers to entry.
- Small business growth. The projected growth of small businesses will provide another opportunity and will feed opportunities directly into the The Coffee Shoppe pipeline.
- Larger organizations. Larger organizations could possibly realize the opportunities that can be found in the local region and begin entering the market. While this is a threat, the founder believes that with strategic marketing, community efforts and customer service, this threat can for the most part be mitigated.
6. Marketing Plan
Marketing for The Coffee Shoppe will be done through a variety of mediums with television, print and the Internet being the primary drivers. The website will have SEO capabilities and will be developed using all of the latest in web and graphics technologies.
In addition to the home website, plans also call for the creation of a strong social media presence using Facebook.com and Twitter.com with regular updates occurring on each of the aforementioned pages.
Commercial time has already been purchased through ABC and commercial production will begin immediately following funding acquisition. Print marketing will consist of advertisements being placed in publications that are typically read by members of the targeted audience including small business owners and corporate types.
Networking will round out the The Coffee Shoppe marketing mix with the founder joining various networking groups that give her the ability to champion the brand that she has created.
7. Funding Request
8. Management Summary
9. Financial Highlights
To learn more about financial indicators, click here to download the pdf
Break even analysis
Profit and Loss Statement
Projected Cash Flow
Projected Balance Sheet
Our free real sample business plans will show you how to write a plan that looks as polished and professional as this one.
Click to view the coffee shop business plan sample. Our experienced business plan writers professionally write each business plan and work with you to develop a winning plan.
Coffee Shop Business Plan PowerPoint Presentation
Download coffee shop business plan example pdf.
We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.
- Investor Business Plans
- M&A Business Plan
- Private Placement
- Feasibility Study
- Hire a Business Plan Writer
- Business Valuation Calculator
- Business Plan Examples
- Real Estate Business Plan
- Business Plan Template
- Business Plan Pricing Guide
- Business Plan Makeover
- SBA Loans, Bank Funding & Business Credit
- Finding & Qualifying for Business Grants
- Leadership for the New Manager
- Content Marketing for Beginners
- All About Crowdfunding
- A Comprehensive Guide to Venture Capitalists
- EB-5 Regional Centers, A Step-By-Step Guide
- Logo Designer
- Landing Page
- PPC Advertising
- Business Entity
- Business Licensing
- Virtual Assistant
- Business Phone
- Business Address
- E-1 Visa Business Plan
- EB1-A Visa Business Plan
- EB1-C Visa Business Plan
- EB2-NIW Business Plan
- H1B Visa Business Plan
- O1 Visa Business Plan
- Business Brokers
- Merger & Acquisition Advisors
Proud Sponsor of
- (613) 800-0227
- +44 (1549) 409190
- +61 (2) 72510077
- Most Popular
- Explore all categories
business plan template - teen entrepreneur · small to medium business plan template business plan...
- Business Plan Template - Teen Entrepreneur · Small to Medium Business Plan Template Business Plan Overview ... questionnaire. Collate the answers into a table and represent them
Post on 23-Aug-2018
Embed Size (px) 344 x 292 429 x 357 514 x 422 599 x 487
Small to Medium Business Plan Template
This pack includes:
Business plan templateFunding pitch presentation templateTips on presenting
Business Plan Overview
The purpose of a business plan is not just for the banks but to help clarify what you and your business will look like in the future. This is a long and often tedious process but when it is done you will appreciate the advantage of having put in the time and effort.This document is a template of the best of breed content for a typical business plan focused on the small to medium startup business sector. If your business does not fit this profile then please feel free not to use this template. As you work through this document please add, delete and modify it as required by your business. This is not my plan for your business but your plan for your business and your future.
If you are completing this document in order to secure funding then please also add your personal financial documents to this that should prepare assets and liability statement, banking details and copies of account statements together with any form of liquid or investment profiles that could be used as collateral to secure your required finances.
Good luck and welcome to your future.
Business Plan Layout
1. Header page2. Index3. Personal Declaration4. Executive Summary5. General Overview6. Business Analysis
6.1 Environmental Analysis (PESTE Analysis)6.2 Benchmarking Analysis (5 Forces Analysis)6.3 Product Position Analysis6.4 Evaluate the resources (SWOT)6.5 Market Research
7. Business Strategy7.1 Product or Service Description
7.1.1 Product Features7.1.2 Product Benefits
7.2 Procurement and Manufacturing7.3 Distribution7.4 Customer Care7.5 Product Analysis 7.6 Pricing
8. Financial Plan8.1 Capital Costs8. 2 Expenditure Budget8.3 Income Budget8.4 Cash Flow Forecast
9. Marketing Plan9.1 Demographics9.2 Possible Marketing Channels9.3 Proposed Marketing Campaigns9.4 Feedback and Management9.5 Marketing Budget
10. Management and Staff Resources10.1 Management10.2 Staff10.3 Professional and Advisory Support10.4 Labour Legislation Requirements
1. Header page
Create a professional looking header page with the name of the business and logo. Add the month and year that you wrote the plan for future reference.
Compose a good, easy to read index of the document with page numbers and point references that correspond to the actual contents. The index on the previous page is an typical example of what it should look like.
3. Personal Declaration
List your personal details including full name, id and contact details.Include your business name and registration details if you have already got this far.Sign and date this page when you are finished.
4. Executive Summary
Write a one-page summary of your business. This should include a description of the problem, what could be done, and what you are planning to do to solve the problem. Always write this section last once your business plan is almost complete. Remember that most people will only read this section so make sure it conveys your passion, business concept and why you need funding.
5. General Overview
Write a short summary of what your business will do. This should include product, people and process descriptions. The easiest way to do this section is to rewrite each section in just one or two sentences. Use their headings as they are in the business plan, with in this section. Once again if someone had to read just this section, they should get a comprehensive overview of what the business is all about and what it plans to achieve.
6. Business Analysis
This section uses various analytical tools to assess the business in relationship to the various factors that will determine the success or failure of the venture. This section will require some research in the form of technical, business and customer interviews. This section is used to identify as many of the factors and issues you can find, do not try to solve each problem in this section, this will be addressed later in the plan.
When writing this section remember it is not designed to analyse your business, so position yourself outside your business looking out at the playing field that you will be operating in and use the tools to assess that environment. Any issues or opportunities that are identified in this section should not be answered yet. Use the following section to do this. Do not be afraid to identify issues that you do not have answers for or that you were previously unaware of. It is a good and bold business owner is able to complete the section with confidence.
Even though they may be overlaps and duplicate points identified within each subsection, remember the tools have been designed to do a very specific task. If you come across problems with access to information, or just unable to complete any assessments then make the appropriate notes under each heading.
6.1 Environmental Analysis (PESTE Analysis)
This tool is used to assess the influences that pertain to your business that need to be taken into consideration when building your business. You do not need to offer any solutions to these in this section. List as many as you can think of using short sentences under each of the five headings:
1. Political InfluenceWhat political issues including politicians, laws, elections and by-laws or civil laws could have an influence on your business?
2. Economical InfluenceWhat economic issues will have an influence on your business? Think about the wealth of the community or access to fund to the affordability of your product.
3. Social InfluenceWhat social issues will have an influence on your business? Consider the local social issues in the community of both your business and customer base.
4. Technological InfluenceWhat technological issues will have an influence on your business? These could range from local infrastructure, technological progress to support issues.
5. Environmental InfluenceWhat environmental issues will have an influence on your business? Consider any issues in and around the local community, access roads, transport, weather patterns and location.
6.2 Benchmarking Analysis (5 Forces Analysis)
Assess any outside forces or factors that may affect the development of your business. These are factors that originate from outside both your business and your control but need to be identified so you can manage their affect and lower the risk to your business. Identify both positive and negative forces for each heading.
1. Threats of new entrants in the marketHow hard will it be to for others to gain access to the market with a similar or new product or service?
2. Determinants of supplier powerWhat factors will you need to consider around your suppliers to your business? This could include import suppliers, lead-time, exclusive contracts, supplier rivalry, price changes or loss of key suppliers to your business.
3. Determinants of buyer powerWhat factors influence your business from your buyers or customers side? This will include brand loyalty, education, awareness of your product or service, needs analysis and affordability.
4. Threat of substitute productsWhat other products already exist or could exist that will lower your share of the pie in this market. Think also of other products outside your scope that could be substituted for your product. (Share of wallet)
5. Rivalry among existing marketWhat existing product or service already exists that directly oppose your planned business? Consider other expanding chains or franchises and any new retail or office developments in your area.
6.3 Product Position Analysis
Define the product or service in the context of product positioning in relations to target market and competitive advantage.
1. Define the LSM (Living Standard Measure 1 - 10) of your target customer
2. Define what your customer base would ideally be. (broad or narrow)
3. Define your product cost structure (low cost or high cost)4. Use the diagram below to position your business.
6.4 Evaluate the resources (SWOT Analysis)
This evaluation identifies both internal and external forces that affect the business. All items identified here will need to be addresses later in this document.
Value Chain (External)
1. OpportunitiesWhat external opportunities exist that need to be realized within the next 3 years to maximize the effectiveness of your business?
2. ThreatsWhat external threats exist that could cause possible damage to your business that need to be watched, managed or eliminated?
Core Competencies (Internal)
1. StrengthsWhat internal strengths do you and your business have that need to be leveraged to gain an advantage in the market?
2. WeaknessesWhat internal weaknesses exist within your business that need to be managed or eliminated to avoid possible future issues?
6.5 Market Research
Market research is an important part of any business plan. Most business owners just assume that their idea is important and of use to the community. This is often the wrong assumption.
Develop a set of both open and closed questions that cover all aspects of your product or service and interview as many people as you can. Develop your questions around some of the issues identified in the above analysis to help determine the strength of each statement. Be prepared for a lot of abuse and shut doors for this exercise. If your venture is large enough you can outsource this to a
research company or use email of Internet to compile an online questionnaire. Collate the answers into a table and represent them with a brief learning description in graphical format such as line or pie charts.This information may be replicated in the marketing plan section but should be used here to represent the factors of risk and implementation.
7. Business Strategy
This section includes all the strategies and plans to get from where you are now to your planned future for your business. This section gives you the chance to explain or counteract any issues or opportunities identified in the previous section. This should include as much detail as possible without becoming too technical or specific. Use the Appendix section to add any long or technical document to support your strategy.
7.1 Product or Service Description
Describe your product or service as you see them as well as how your customer may see them under each of the following headings.
7.1.1 Product Features
Describe the most important features; what the product does, list the attributes and explain why is it so special. If technical specs are required add them to the appendix and refer to them in the notes here.
7.1.2 Product Benefits
Describe the benefits; what will your product does for the customer, how will they benefit from using it. If required refer to any features in the previous section and then explain the benefits to the customer created by that feature.
7.2 Procurement and Manufacturing
Describe the process that will be required for any purchasing and manufacturing of your product or service. Do not list any financials in this section but refer to your financial plan if required.
This section is a narrative of the process. Include all import, carrier, storage, assembly, warehousing and packaging procedures. If any technical machines or processes are used add them to the appendix and refer to them in the text. Include the direct and indirect processes separately.
Describe the process of delivery of your product or service to your customers. This could be a simple delivery by car or a national network of courier transport. Include any agreed payment plans as far as COD, credit or consignment terms and refer to specific numbers in your financial plan.
7.4 Customer Care
Describe the process of delivery of the service to the customer in terms of service that relates to your product. This may include presales, consultation, quoting, installation, training and any after sales service. Include any outsourced associated service that may be required to fully support your product. Refer to any costs involved to the financial plan.
7.5 Product Analysis
Using the information from section 6.3 Product Position Analysis as a base, add other businesses to the diagram in a comparative analysis to your own. Add an additional note for each business son the diagram explaining how you see its position in relation to your own.
Detail your product pricing with a complete breakdown of all aspects of the product to include all raw materials, processes, packaging and delivery fees. Identify any expected increases in these costs over the next 3 years. Clearly identify your anticipated markup and margin for each stage or as a whole.
8. Financial Plan
The financial plan should be as comprehensive as possible and include all figures referred to in the above strategy. Use the preferred financial table format with either 6 or 12 month projections. Separate tables can be used for each section but should all refer to each other and balance. Be sure of your values, if estimates have been used refer to a notes section to explain how you derived at the figure.
Add any notes to values that may appear inflated or out of the ordinary. Remember that it is always better to explain a value than have someone else assume their own story.
If your business has traded for more than a financial year then include the latest financial reports in the appendix.
8.1 Capital Costs
Identify all the initial costs required for the setup of the business. This will include building, vehicle, machinery and licensing costs. See example in appendix A.
8. 2 Expenditure Budget
This will include all costs involved in running the business for 12 to 36 months. Include all fixed costs: loan repayment, rentals and salaries, as well as variable costs for the business. List costs related to the Cost of Sales separately. See example in appendix B.
8.3 Income Budget
List all income from sales and related income anticipated over the next 12 to 36 months. Be realistic and make sure the values link back to the purchases and expenditure section. Make any notes if required to identify seasonal variation or lull periods in the sales cycle. See example in appendix B.
8.4 Cash Flow Forecast
Create a cash flow forecast for 12 to 36 months detailing the liquidity of the business each month. Show the use of any overdraft or bridging finances required to keep the business afloat. This section may look bad when you do it but it needs to an honest reflection of your business situation. If the cash flow shows any serious decline then make notes of how you plan to survive through this period. See example in appendix C.
9. Marketing Plan
Any good business will require a solid marketing plan that can be managed and measured on a regular basis. The sales cycle of any product includes: Awareness, Education and Sales. Use the following sections to identify how you plan to market your product with an initial push followed by a sustainable brand campaign.
Define your customer in as much detail as you can. Use the information from section 6.3 to expand on who, what, why, when and where your customer is or will be. Include all aspects of demographics from race, gender, hobbies, income, children, sport, shopping habits, entertainment and employment factors. If your product spans over more than one type of customer profile then list them separately with reasons why. You can go as far as creating names for each profile to be used later in your marketing plan. For example: Susan a 32 year old single mom with 2 kids, she lives in a leafy suburb, works part time, drives a 1.4l car and plays tennis or gym twice a week. She earns between R 8 000 and R 10 000 per month. She attends a book club and social event each week. Her hobbies include sewing, pottery and school fund raising events. She shops at Shoprite and has an Edgars account and one credit card.
9.2 Possible Marketing Channels
List as many different marketing methods or channels that will be applicable to your business. Separate these under the headings Awareness, Education and Selling. Each campaign will use a selection of these to achieve the desired result. Be as specific as you can when it comes to print media by listing the magazine or newspaper together with the current circulation and target group.
9.3 Proposed Marketing Campaigns
For each campaign you will use, select the defined customer profile, the required marketing material and the delivery method. Describe your desired result together with the volumes of material and length of each campaign. List at least two campaigns under each heading, Awareness, Educate and Sell.
9.4 Feedback and Management
Describe how each campaign will be measured using feedback methods from customers of marketing codes. It is important to utilize some form of measurement for you can analyse the effectiveness and return on investment. A lot of businesses spend money that is never accounted for or managed resulting in huge losses on ineffective marketing. Just because others are doing it, it does not mean you need to do the same.
9.5 Marketing Budget
The marketing expense budget should be detailed for each campaign and should include all anticipated expenses. These numbers should be reflected in a summary format in your financial plan.
10. Management and Staff Resources
This section is dedicated to all the human relationship and employment issues related to your business. The three sections relate to the different groups of people you will need to work with within your business.
Start off with a simple organisation chart detailing the positions and names of each team player. Add the people mentioned in 10.3 as unlinked blocks down one side.
Management includes the business owners and those who will initially run the business. This will only include a small number to begin with but should grow as the business grows. List the names, qualifications and functions of each person on your team.If equity is hared amongst them, then indicate the percentage for each.
List the required job function and number of staff for each department within your business. Include the required qualifications, experience, cost to company and planned growth for each level. Make sure that all financial match up to the summary value in your business plan.
10.3 Professional and Advisory Support
List the external or outsourced tasks that will be required to successfully run your business. This will include all legal, financial, Mentoring, Coaching, Labour and other services you will require.For each service list the already allocated persons details or a brief description of the person you will still need to find.
10.4 Labour Legislation Requirements
List any legal requirements that will need to complied to in regard to labour, health and safety or trade unions within your business. It may be wise to consult a specialist in this field if you do not have any experience with these issues. Any non-compliance in this area is frowned upon by the authorities and could lead to hefty fines or penalties.
List each Appendix on a separate page. Make sure that all references within the document point to the correct appendix.
If you are inserting glossy specification sheets or copies of your advertising campaigns then create a header page before each one with the appropriate heading and explanation.
Remember that your business plan may be photocopied and distributed to other people within the funder organisation so make sure your appendix attachments are not stapled together or unable to be copied without loosing their clarity.
Appendixes are numbered alphabetically.
Appendix A – Capital Costs
ACME IndustriesCapital Cost Budget
Months 1 2 3 Total Capital Expense 800 800 800 2,400 Motor Vehicle 1 100 100 100 300 Motor Vehicle 2 100 100 100 300 Printing press 100 100 100 300 Computers 100 100 100 300 Network and accessories 100 100 100 300 Office Furniture 100 100 100 300 Rental Deposit 100 100 100 300 Telephone 100 100 100 300
Appendix B – Income and Expenditure BudgetACME Industries
BUDGETED Income Statement for the year ended 31 December 2008 Months 1 2 3 4 5 6 7 8 9 10 11 12 Total Sales / Turnover Product 1 100 100 100 100 100 100 100 100 100 100 100 100 1,200 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Cost of Sales 50 50 50 50 50 50 50 50 50 50 50 50 600 Opening Stock - 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 - (Add:) Purchases 1,050 50 50 50 50 50 50 50 50 50 50 50 1,600 (Less:) Closing Stock 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Gross Profit 50 50 50 50 50 50 50 50 50 50 50 50 600 Operating expenses 800 800 800 800 800 800 800 800 800 800 800 800 9,600 Advertising 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Bad debts 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Depreciation 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Discount allowed 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Insurance 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Salaries and wages 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Stationery 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Telephone 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Operating Profit (EBIT) -750 -750 -750 -750 -750 -750 -750 -750 -750 -750 -750 -750 -9,000 Interest expense 100 100 100 100 100 100 100 100 100 100 100 100 1,200 Other income - - - - - - - - - - - - - Net income before tax -650 -650 -650 -650 -650 -650 -650 -650 -650 -650 -650 -650 -7,800 Income tax -195 -195 -195 -195 -195 -195 -195 -195 -195 -195 -195 -195 Net income for the year -845 -845 -845 -845 -845 -845 -845 -845 -845 -845 -845 -845 -10,140
Appendix C – Cash Flow Forecast Months 1 2 3 4 5 6 7 8 9 10 11 12A CASH ON HAND 100 -700 -1,500 -2,300 -3,100 -3,900 -4,800 -5,600 -6,400 -7,200 -8,000 -8,800 B CASH INFLOW Sales/Turnover Product 1 Cash Sales 100 100 100 100 100 100 100 100 100 100 100 100 Credit Sales 100 100 100 100 100 100 100 100 100 100 100 100 TOTAL CASH RECEIVED 400 400 400 400 400 400 400 400 400 400 400 400 C CASH OUTFLOW Cost of Sales 200 200 200 200 200 200 200 200 200 200 200 200 Purchases Cash Purchase 100 100 100 100 100 100 100 100 100 100 100 100 Credit Purchases 100 100 100 100 100 100 100 100 100 100 100 100 Operating expenses 800 800 800 800 800 800 800 800 800 800 800 800 Advertising 100 100 100 100 100 100 100 100 100 100 100 100 Bad debts 100 100 100 100 100 100 100 100 100 100 100 100 Depreciation 100 100 100 100 100 100 100 100 100 100 100 100 Discount allowed 100 100 100 100 100 100 100 100 100 100 100 100 Insurance 100 100 100 100 100 100 100 100 100 100 100 100 Salaries and wages 100 100 100 100 100 100 100 100 100 100 100 100 Stationery 100 100 100 100 100 100 100 100 100 100 100 100 Telephone 100 100 100 100 100 100 100 100 100 100 100 100
Cash outflow from loan repayments 200 200 200 200 200 200 200 200 200 200 200 200
Interest expense 100 100 100 100 100 100 100 100 100 100 100 100 Loan principle repayments 100 100 100 100 100 100 100 100 100 100 100 100 Tax payments - - - - - 100 - - - - - 100 TOTAL CASH PAID OUT 1,200 1,200 1,200 1,200 1,200 1,300 1,200 1,200 1,200 1,200 1,200 1,300 CASH AVAILABLE / (DEFICIT) -700 -1,500 -2,300 -3,100 -3,900 -4,800 -5,600 -6,400 -7,200 -8,000 -8,800 -9,700
Presentation Pitch Template
When pitching to a Funder, make sure you are well prepared and have taken the following into consideration:
1. You know what your product and business is all about2. You have done your research and are sure of your details within
your business plan3. You have prepared and read through your business plan4. You are confident in yourself and your business5. You are pitching to the right type of funding company6. You are sure of what you need from the funder7. You are confident that you can pay your loan back8. You have prepared a good presentation and practiced until you
can do it in your sleep
Defining your Funding Pitch
When pitching to a funder whether a banker, Angel of VC, your pitch needs to follow a certain formula to cover all the required aspects. It follows a similar process flow to your business plan.
This pitch should be no longer than 20 minutes or 10 slides.Before we begin on the presentation format a few notes on the slides.
PowerPoint Slide Rules
• Less is more – do not clutter your slides with graphics and colours• Use a simple colour background with a contrasting font colour• Design a good cover slide• Display your logo on every page• Use no more than 6 points per slide• Have no more than 6 words per point• Your slides are a visual aid, not a text to read from• Do not use sound effects of fancy transitions• Do not use automatic timing on the slides• Keep any animation to a minimum • Remember simple is good
When presenting, you will get better with practice as you get more confident. Here are some pointers to begin with.
• Stand on both feet, do not shift around• Use your hands or let them hang at your side• Maintain eye contact with the room• Do not look back at your slide show or talk to the screen• Speak slowly and clearly• Pause for effect to allow complex issues to sink in• Point with an open hand• Speak with conviction and confidence
Your presentation should be compiled from the eight sections detailed below, each related back to your business plan. You need to assume that the people listening to you have not yet read the plan and do not know about who you are or what you do, so start from the basic beginnings and work up to the climax at the end.
Please write out your speech by answering all the questions below, then create your slides. Doing this in reverse will always result in a poor presentation. Your slides need to complement you and your speech, not lead them.
Header slide• Create a good looking header slide with your logo in your corporate
1. Tell them why they are here and what to expect • Who are you?• What do you do?• Why should they care?
2. What is it that your business does?• What is the problem you have identified and hope to address?• What is the opportunity or advantage in having this problem fixed?
3. Does anyone care about what you do? (how viable is your business)• How many people need what you are offering?• Why do they need what you are offering?
• How do you deliver your service or product?
4. How do they know you are not just making this stuff up?• Who has used you before?• Why did they choose your solution?
5. Describe your product or service• Show a brief overview of the product• You need to make this brief (2 minutes) this pitch is more about the
business than your product• Try to avoid any live demo unless you can guarantee that it will work
6. Explain your sales cash flow cycle• How do you make money in the business
o Procuremento Manufacturingo Packagingo Deliveryo Saleso After sales
7. Why should they believe that you can do this?• Talk about yourself and your team• Give brief overviews of surety members• Touch on staff expertise• Touch on contractors and consultants• Remember to emphasis the passion together with the expertise and
experience• Do not highlight your inadequacies
8. What do you want or need?• How much money do you need?• What are you gong to use it for?• How do you plan to pay it back?
Each section should be on a different slide with points easily identified back to what you are saying.
• Prepare your speech then your slides.• Practice, practice, practice• Update your slides as you practice so they compliment your speech• Make a set of queue cards or highlight key points on your written
speech to use as speaker notes• Make a printout of your slides to use as handouts if required (you
never know when technology or electricity will fail you)• If you are going to do a live demo of your product make sure it will
work and it is ready to use. Do not waste time in setting things up while the panel is waiting
• Make a copy of your presentation in the final format onto a memory stick or CD or both
• Confirm the required Audio Visual equipment is available or bring your own
• Always be ready to stop and answer questions from the panel and then be able to continue with your presentation.
Good luck, remember that this is just a process in the development of you business. Embrace it, learn from it and enjoy it.
TijuanaTacos Business Plan-sample business plan template
Business plan template - business gateway | business gateway, business plan - template, business plan template: business plan play place€¦ · web viewbusiness plan template by savetz publishing, inc. download a business plan template, open it in microsoft word, enter, business plan template pizzeria, national betting authority business plan template … · national betting authority business plan template template guide rationale behind the business plan requirement ... 8 swot, business plan template - young entrepreneurship …yes.gov.fj/.../01/yes-business-plan-template-sample.docx · web viewyes.gov.fj business plan template if you need further information,, business plan template, business plan template - anz.co.nz · business plan template this business plan template will help you create your own business plan from scratch. the secret is to keep your plan, business plan template : professional business plan, template business plan, business plan template: business plan cleaning service · web viewbusiness plan template by savetz publishing, inc. download a business plan template, open it in microsoft word, enter, business plan-template.
A business plan for entrepreneurs is a document that lists the objectives and goals of the business. It includes information on how the business will specifically achieve its goals
00 MakBus prels.qxd22/01/200915:04Page ivPublisher's note Every possible effort has been made to ensure that
1 Article 22 Outline for a Business Plan A proven approach for entrepreneurs only a written representation of where a company is going, how it will get there, and what it will look like once it arrives Ernst
Let's review the Coffee shop business plan sample in PDF to find out how cloud-based software can make your day-to-day work more efficient
Without a business plan, no bank, venture capital house, or corporate parent will consider finance for start-up, expansion or venture funding. The Business Plan Workbook is an essential guide to all aspects of business planning for entrepreneurs
Small to Medium Business Plan Template This pack includes: Business plan template Funding pitch presentation template Tips on presenting Small to Medium Business Plan Template…