Business Plans Ross

What is a Business Plan? A business plan is a series of documents that serves as a blueprint for building a business. A business plan includes: Information about the business The industry it competes in The products and services Its customers and competitors Its finances A business plan helps break down the process of opening a business into small pieces.

A business plan indicates: The current status of the business: What stage the business is in The vision of the business: What are the future goals and objectives of the business A plan to achieve that business

The primary functions of a business plan To set goals and objectives for the business to follow To attract potential investors To acquire financing To attract quality employees To attract potential new customers

Components of a Business Plan Cover Page Executive Summary Company Description Description of Products and Services Market Analysis Marketing Plan Operating Plan Funds Required and Expected Uses Financial Statements Owner’s Qualifications Supplemental Attachments

Breakdown of Each Component Cover Page Includes company name and address information, The author of the business plan, The date the business plan was created. Executive Summary Summarizes all sections of the business plan. First section of the business plan Must capture the reader immediately

Breakdown of Each Component Company Description Gives details about the business including its age, history, legal form of ownership, industry classification, structure, location, the number of employees, and its primary functions. Description of Products and Services Provides detailed information about the products and/or services offered to customers. Market Analysis Provides detailed analysis of the conditions and trends in an industry

Breakdown of Each Component Marketing Plan Plans for maintaining and building the customer base, Benefits to the customer of choosing this business over competitors, Pricing information, Promotion and advertising plans. Operating Plan Details the operations of the business from getting materials and supplies to selling products and services.

Breakdown of Each Component Funds Required and Expected Uses Necessary when looking for investors or bank loans. Shows detailed plans for the use of any funds and plans for repayment Financial Statements Includes: Statement of Profit/Loss A Balance Sheet Statement of Cash Flow 3 years of cash projections

Breakdown of Each Component Owner’s Credentials Includes resume of the owner. Supplemental Attachments Additional Documents Marketing Materials Pictures, etc.

Characteristics of a Good Business Plan Although most business plans are not identical, they all must be: Neat Organized Professional Well-written and well-designed Highlight important parts of the business pages in length

Study Guide Components of a business plan (matching) Definition of a business plan Characteristics of a good business plan