1. Business Plan Training II
Overview of Executive Summary and Business Concept Paper

2. Business Plan Training Learning Objectives
To Get an Overview of the Basic Components of a Business Plan
To Define practical steps to Starting a Business Plan
To Understand the Business Concept Paper

3. I. Business Plan Overview II. Getting Started
Table of Contents
I. Business Plan Overview
II. Getting Started
III. Writing the Business
Concept Paper

4. I. Business Plan Overview
I.1. The Executive Summary
I.2. Company Description
I.3. Industry Analysis and Trends
I.4. Target Market
I.5. Competition
I.6. Strategic Position and Risk Assessment
I.7. Marketing Plan and Sales Strategy
I.8. Operations
I.9. Technology Plan
I.10. Management and Organization
I.11. Community Involvement and Social Responsibility
I.12. Development, Milestones and Exit Plan
I.13. The Financials
I.14. The Plan’s Appendix

5. I.1. The Executive Summary
the most important part of the business plan
the first to be read
needs to transmit a positive feeling about the business
determines whether the reader will read the entire business plan or will abandon it
A) SYNOPSIS SUMMARY
B) NARRATIVE SUMMARY

6. I.2. Company Description 1. COMPANY’S NAME 2. STATEMENT OF MISSION
3. LEGAL ISSUES
4. PRODUCTS AND SERVICES
5. BUSINESS LOCATION
6. MANAGEMENT / LEADERSHIP
7. FINANCIAL STATUS
8. DEVELOPMENT STAGE AND MILESTONES ACHIEVED TO DATE

7. I.3. Industry Analysis and Trends
Size and growth rate
Sensitivity to economic cycles
Trends in your industry
Strategic opportunities that exist in your business
Seasonality
Technological change
Financial Characteristics
1. INDUSTRY ANALYSIS
Service
Manufacturing
Retail
Distribution
2. YOUR ECONOMIC SECTOR

8. I.4. Target Market Demography 1. DEFINE YOUR TARGET MARKET: Geography
2. LYFESYLE / BUSINESS-STYLE DESCRIPTION
Size
3. MARKET SIZE AND TRENDS
Trends

9. I.5. Competition 1. Who are your major competitors?
2. On what basis you compete?
3. How do you compare?
4. What are the potential future competitors?
5. What are the barriers to entry for new competitors?
6. What are your strategic opportunities?

10. I.6. Strategic Position and Risk Assessment
1. DISTINGUISHES YOU FROM YOUR COMPETITORS:
a) Customer perception
b) Market Segment
c) Market Share
d) Operational / Technological Advantages
e) Sales Channels
a) Market Risk
e) Execution Risk
b) Competitive Risk
2. RISK ASSESSMENT:
c) Technology Risk
f) Capitalization Risk
d) Product Risk

11. I.7. Marketing Plan and Sales Strategy
MARKETING is designed to increase the customer’s awareness and deliver a message
SALES represents the direct action taken to solicit and procure customer order
How am I going to make customers aware of my product or service?
How am I going to secure the actual sales?
What message am I conveying to my customers about my product, service or company?
How am I going to use the sales force?
What methods am I going to use to deliver and reinforce the message?
What kind of sales procedures am I going to employ?

12. I.8. Operations
What are the key characteristics of my operations system?
What competitive advantage do they give me?
Labor
Productivity
Capacity
Quality Control
Equipment and Furniture
Location
Lease
Improvements
Utilities/Maintenance
Key Factors
1. Facilities
2. Production
3. Supply and Distribution
4. Order fulfillment and Customer Service
5. Research and Development

13. I.9. Technology Plan 1. SOFTWARE 2. HARDWARE 3. TELECOMMUNICATIONS
Database
Inventory Management
Communication Software
Presentation Software
Human Resource Management
Computers
Storage Devices
Servers
Other
1. SOFTWARE
2. HARDWARE
3. TELECOMMUNICATIONS
4. PERSONNEL / CONSULTING
Telephones
Faxes
Mobile/Wireless Phones
Internet Access
Website / Design
Systems Design / Maintenance
Tech Support / Help Desk
Other

14. I.10. Management and Organization
KEY EMPLOYEES / PRINCIPALS
BOARD OF DIRECTORS
You have:
Your people determine your success!!!
ADVISORY COMMITTEE
CONSULTANTS AND OTHER SPECIALISTS
You might need:
Good to have:
KEY MANAGEMENT PERSONNEL TO BE ADDED
INDICATE THAT YOU HAVE THE BEST PEOPLE IN THE RIGHT POSITIONS FOR EFFICIENTLY RUNING YOUR BUSINESS.

15. I.11. Community Involvement and Social Responsibility
Corporate social responsibility is:
Good for business
Good for the community
Good for the economy
VISIBILITY
POSITIVE IMAGE
RECRUITMENT FACILITIES
STRONGER TEAM
EMPLOYEES’ SATISFACTION
CONTACTS WITH OTHER COMPANIES
It gives you

16. I.12. Development, Milestones, and Exit Plan
1. GOALS
Where do you want to go?
2. STRATEGIES
How do you want to get there?
3. MILESTONES ACHIEVED TO DATE
What have you accomplished so far?
4. FUTURE MILESTONES (OBJECTIVES)
What do you want to accomplish in the near future?
5. RISK EVALUATION
What are the risks?
6. EXIT PLAN
How to get the money back?

17. I.13. The Financials Refer to the actual financial projections.
Include:
1. INCOME STATEMENT
2. SOURCES AND USE OF FUNDS
3. CASH-FLOW ANALYSIS
4. ASSUMPTION SHEET
5. BALANCE SHEET
6. STARTUP COSTS (for new businesses)

18. I.14. The Plan’s Appendix Letters of intent Recommendations
Market Research Results
Photos (products, locations, etc.)
List of locations
Manufacturing Information
Marketing Material
Resumes of Key Managers
Competitive Analysis
Marketing Budget
Technical Information (e.g. detailed description of your technology)

19. II. Getting Started

20. How do I get Started? Research Concept as thoroughly as possible
Form an Advisory Group
Write a Business Plan Concept Paper
Get Feedback from your Advisory Group
Know your Resources and involve all key stakeholders along the way

21. What to Expect Be ready for and prepared for Set backs
Re writing certain sections of the plan several times
Spending at least 2 weeks on your financials
Discovering new information along the way that will be discouraging and encouraging
Discovering new information that will change your concept or sections of the plan

22. What to Expect (cont…)
To discover new partners and people who will help your business grow
To continually improve your original business concept
To see ideas grow and expand
To find better ways of doing things
To learn a lot along the way.

23. Business Concept Paper
Review Questions
Answer as many questions as possible in an organized format
Use key information resources for each section

24. Getting Started For next week write a 3-5 page business concept paper
Identify an Advisory Group
Brainstorm available resources; write a list of 20 available resources that can help your business idea/ concept grow.

25. Questions & Answers

27. III. COMPANY DESCRIPTION
“The reason most businesses fail is because they don’t understand the business they are in.”
(Ronda Abrahams, 2000)

28. III.1.Contents INTRODUCTION 1. The Company’s Name
5. Management / Leadership
2. The Company’s Objectives and the Statement of Mission
6. Business Location
7. Development Stage and Milestones Achieved to Date
3. Legal Issues
4. Products and Services
8. Financial Status

29. Introduction What is the company’s name?
Who are the current investors and what is their share of the ownership?
What is the genesis of your business?
How did the management team evolve?
Current and future facilities?
How have you been funded up to this point?
What are the possible exit strategies?
Have you invested your own money in the business and how much?
How is the company legally structured?

30. their number depends on the nature of your business
III.1.1. The Company’s Name
Indicate all names associated to your business:
Your own name
The legal corporate or company name
A “doing business as”
Brand name
Model name
Subsidiary company name
Domain name
their number depends on the nature of your business

31. III.1.2. Mission Statement
Mission statement = sums up the fundamental principles, philosophy and objectives that guide your business;
= represents the defining concept of your business (at least for the next few years);
= its length can vary from one sentence to a paragraph;
= gives you and your partners a clear idea about you want to do and about the path you follow.

32. 4. Proprietary business assets:
III.1.3. Legal Issues
Sole proprietorship / partnership
1. Which type of legal entity will you chose for your business?
Incorporated
Type of your company (s.a, s.r.l., etc.)
2. Licensing procedures
3. Distribution agreements
Trademarks
4. Proprietary business assets:
Patents
Copyrights

33. III.1.4. Products and Services
Identify and describe the nature of the products
Indicate the general categories of products offered
Indicate future products or services
Do not disclose sensitive information – for innovative products
1. Short description of your products and services:
For very technical, complicated and/or innovative products
2. Different section of the Business Plan
If you are seeking funding for a new product or service

34. III.1.5. Management / Leadership
Include the names of:
1. Key members of management - The Chairperson of the Board of Directors / President / Chief Executive Officer
2. Board of directors / advisory board / other governing entity: how many people and how often they meet
Add their names only if they are well known people

35. III.1.6. Business Location List the locations of your:
Describe the geographical area your company serves
1. Headquarters
2. Main place of business
3. Branches
If you do not have the location yet, indicate the general whereabouts of your operations.

36. III.1.7. Development Stage and Milestones Achieved to Date
EXISTENT COMPANY
Show the progress you have made so far
START-UP COMPANY
Contents:
a) Seed company – business concept but no finalized product or service;
1. When was the company founded
b) Startup – early stages of operations;
2. Your phase of development
c) Expansion – adding new products, services, or branches;
d) Retrenchment – consolidating product lines;
e) Established – maintaining market and product positioning.
3. What is your plans’ progression?

37. III.1.8. Financial Status
Gives a brief idea of the status of your company in financial and personnel terms:
1. Loans and investments received and their terms
2. How much money you seek (if your are looking for funding) and for what purpose;

38. Conclusions
The Company Description section should convey a brief and clear idea about your business:
what the company is about;
what is its legal status;
how far along you have developed;
what are you planning to do further on.
It also articulates your Statement of Mission which helps you and your partners get a clear idea on what your philosophy is.

39. Homework Time
Write a 2-3 pages executive summary for a company of your choice and develop a little more the company description section.