1. How to write a business plan?
Jianfeng Wu
Guanghua School of Management
Peking University

2. What is a business plan?
A document that describes a new venture’s internal and external environment, and its strategies.
Marketing plan;
Financial plan;
Manufacturing plan;
Human resource plan;
Etc.

3. Who writes a business plan?
The entrepreneur (yourself).
Consultant.
Excellent
Good
Average
Poor
Accounting and tax
Marketing research
Human resources
Product design
Legal issues
Sales

4. Who will read a business plan?
Potential employees
Investors
Banks
Venture capitals
Suppliers
Customers

5. Three perspectives Entrepreneur: - What I am going to do step by step?
2. Customer:
- Is this product/service worth buying?
3. Investors:
- Is this business worth investing?

6. Outline of a business plan
Cover page
Executive summary
Environment & industry analysis
Company summary
Production plan
Marketing plan
Organizational plan
Risk evaluation
Financial plan
Supporting documents

7. Cover Page Name and address of the new venture
Name, phone, fax, , website, and mail address of the entrepreneur
Summary of the business
Investment required
Secrecy issue

8. Executive summary Last step in writing a plan
Motivate investor’s interest
2-3 pages
Key issues:
Business description
All useful data to support this business idea

9. Environment and industry analysis
Key questions:
Major trends in the economic, technological, legal, and public policy areas;
Sales per year in the target industry (5-year data);
The growth potential of the target industry;
No. of new ventures in the target industry in the past 3 years;
New products in the target industry;
Who are your direct competitors?
How to compete with your competitors?
How are your competitors doing in terms of performance?
What are the (dis)advantages of your competitors?
How about the future trend in your target niche market?
How about your potential customers?
Any differences between your customers and your rivals’?

10. Company summary Mission Why do you want to enter this industry?
Why do you think you will succeed?
What are your products and services?
Where is your company located?
How to find your office building?
Is the location effective for your business?
What kind of equipments do you need? Buy or rent?
What kind of experiences do you have?

11. Production plan Marketing plan (4Ps) Organizational plan
Target customers
Organizational plan
Organizational form (China-specific)
Ownership structure
Organizational structure
Top management team and compensation

12. Risk evaluation What are the potential risks?
If happen, what kind of negative outcomes?
How to cope with these risks?

13. Financial plan
Sales and expenses forecasting in the first three years;
Cash flow
For the first year, use monthly data;
Income statement, balance sheet