The Business Plan.

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Presentation transcript:

The Business Plan

What is it? It is a study which identifies the business, the product, the market, the business feasibility and it financial requirements.

What does it need to confirm? Can the product be produced? Is there a market for the product? Will the investors make a return on their investment?

Applications of the Business Plan Raise Finance Forces an objective view of the business Outlines a plan of action Provides a framework for future decisions Instils confidence in team of small business Identifies the market Facilitates communication about the business to stakeholders

Business Plan Structure Executive Summary Overview of the new business Outlines the type of business Identifies the market Outlines the business potential and sales forecast Estimates a profit forecast Estimates how much money needs to be raised Calculates the return on investment Assess the risk

Business Plan Structure Business Description Describes the product or service Identifies the unique selling points Provides a summary of competitor analysis Outlines the life of the product Application for patents etc.

Business Plan Structure Organisational Structure Present the structure of the organisation Identifies the employees experience Include employee CVs and profiles Identifies the Strengths and weaknesses Identifies stockholders

Business Plan Structure Sales and Marketing Outlines the customers profiles Estimates the size of the market Identifies market opportunities Identifies and examines the competitors Details the marketing mix – product, price, place, promotion, physical evidence, process and people.

Business Plan Structure Manufacturing and Distribution Describes location Lists equipment and manufacturing facilities Outlines build-method and feasibility study List suppliers Describes warehousing and stock control Outlines logistics system- transportation etc.

Business Plan Structure Financial Statement Estimates the set up costs Estimates the operational costs Forecast sales Determines the breakeven point Determines the payback period Produces a cash flow statement Estimates the return on investment Identifies sources of finance

Business Plan Structure Risk Management Describes risk analysis Discusses risk response Discuss disaster recovery

Business Plan Structure Executive Summary Introduction and background Project Outline Ownership, Management and Employment Market and Marketing Strategy Production Financial Funding Proposal Detailed Projections

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