The Business Plan If you don’t know where you are going, how will you know when you are lost? - Rhonda Abrams, The Successful Business Plan

Why Write a Business Plan? Required or recommended by bank, investor, attorney, or accountant –Increases understanding of industry and market –Provides a resume for your business –Guides control of your business Marketing Operations Finances Long-term development –Provides a competitive edge –Provides a basis for measuring progress

What Is a Business Plan? A formal statement that summarizes the goals of a company and how the company plans to achieve those goals.

Components of a Business Plan Executive Summary The Industry Market Analysis Competitive Analysis Marketing Plan Management Plan Operating Plan Financial Plan

Executive Summary A clear, concise, engaging description of your planned business Should explain that –The business concept makes sense –A market exists –The business has been thoroughly planned –Significant competitive advantages exist –Investors have an excellent opportunity to make money Written after the rest of business plan is complete

The Industry An overview of the industry in which your product will compete Should include –Description of your industry –Trends in the industry –Where your business fits in the industry iStockphoto.com

Market Analysis Shows an understanding of your potential customers Includes –Description of the target market –Description of the needs of the target market –Available market size –Estimate of market share for your product iStockphoto.com

Competitive Analysis Shows an understanding of the competition Includes –Major competitors –How you compare –Potential future competitors –Barriers to entry into the market –Competitive Product Analysis Detailed description of competitive products and their strengths and weaknesses How you gain a competitive advantage

Image Resources Microsoft, Inc. (n.d.). Clip art. Retrieved from iStockphoto. Retrieved from