Writing a Winning Business Plan

A business plan is a strategy for creating, launching and managing a new venture. It answers the questions of A business plan is a strategy for creating, launching and managing a new venture. It answers the questions of What, Why, Who, When and Where. Most important, it answers the question of How.

Success begins with a great opportunity. A viable opportunity exists when:  You have intimate knowledge of the industry (products, services, competitors, customers’ needs, missing pieces)  You meet an important need or want that currently is not being met in the market  You can execute a viable business in the industry (robust market, healthy margins, early cash flow, high profit potential, a strong team, customer ready to buy)

Components of the Plan  Cover Page  Table of Contents  Executive Summary  Business Description  Products and Services  Market and Marketing Strategy  Management/Organizational Plan  Financial Summary  Implementation Plan

Cover Page  Name of new business  Name of founders  Contact information  Date of plan

Table of Contents  Includes major sections and page numbers  Includes sub-sections and page numbers

Executive Summary  2 to 3 pages in length in full plan  Brief description of business, products and services, competitive advantage  Brief overview of marketing strategy  Brief overview of management plan  Brief overview of financial summary including sales and profit projections

Business Description  Purpose of business venture  Mission, vision and values  Long-term goals/objectives  Legal structure and ownership

Products and Services  Products, services and features  Positioning, pricing and margins  Unique competitive advantages  Intellectual property (trademarks, patents, copyrights if any)  Critical technology required  Government/environmental issues

Market and Marketing Plan  Detailed assessment of industry  Evaluation of major competitors  Market size for products/services  Market segments/customer profiles  Target customers and/or companies  Channels for product distribution  Sales and marketing strategies

Management Plan  Members of the management team  Structure of organization and roles  Acquisition/sourcing of materials  Production/assembly of products  Packaging and distribution  Customer service strategy

Financial Summary  Financing required for venture  Timing of financing stages  Financial projections (3 to 5 years)  Cash flow analysis  Break-even analysis  Expectations for ROI

Implementation Plan  Major objectives for the first year of operation  Specific action plans for achieving each objective

Sample business plans can be viewed on the following websites: www. bplans.com