Business Plan Guide Pt 1

Have you ever been asked to do a business plan?  Most business plans are downloaded from the internet with very technical words that most first time entrepreneurs do not understand.

HER business has done a 3 part segment or writing a simple and practical business plan, should you require one fro your business.

For each section, write a short description that addresses all of the included points and questions that apply to your business. Here we go:

Statement of Purpose:

Describe the business, its product and the market it will serve. It should point out:

  • what will be sold
  • to whom
  • why the business has a competitive advantage

Highlight the important financial points of the business:

  • sales and marketing
  • profits
  • cash flows
  • return on investment

Clearly state the capital needed to start the business and to expand. It should detail:

  • how the capital will be used
  • the equity, if any, that will be provided for funding

Furnishes relevant information about the company:

  • its legal form of operation
  • when it was formed
  • the principal owners
  • key personnel

Details any developments within the company that are essential to the success of the business:

  • patents
  • prototypes
  • any contracts that need to be in place for product development
  • results from any test marketing that has been conducted
Business Description:

Describe the industry: discuss the present and future outlook. Provide information on the various markets within the industry:

  • new products or developments that will benefit or adversely affect your business

Describe your structure:

  • What is your structure?
  • Is the business new or pushing in a new direction?
Customer overview:
  • Who?
  • How reached?
  • Business operation support?
Product overview:
  • What are the distinct features?
  • What is the value proposition?
Describe your projections of profitability:
  • What factors will make your business profitable?
  • If applicable, how will equity or debt impact profitability?
  • How will you grow your business utilising this expected profit?
  • How will your team composition impact profitability?
  • What external opinions impact your expectation of profitability?

Part 2 will cover Market, Pricing and Positioning

Source:TEEP