Monday, August 03, 2009

How to Write Business Plan

1) Executive Summary
2) Business Description
3) Business Environment Analysis
4) Industry Background
5) Competitive Analysis
6) Market Analysis
7) Marketing Plan
8) Operations Plan
9) Management Summary
10) Financial Plan
11) Milestones

2) Business Description
- History of Concept
- What Kind of Business is it?
- What Product / Service is it?
- Why people will use it?
- What the financial status is?
- Who manages the business?
- Structure of business?
- Where is it located?

3) Business Environment Analysis
- What is the industry?
- Who are the competitors in the industry
- What is the market?
- Who are the customers in the market?

4) Industry Background
- Range of products / services encompassed by this industry
- What is this industry production capacity, unit sales, overall profitability?
- Industry spread out geographically, or concentrated near source of raw materials?
- Trends
- What is the predicted growth rate?
- New patterns of growth?
- What factors might contribute to future growth?
- Industry fragmented?
- Major competitors controlling the industry?
- Quick to adopt technology, or tradition industry?
Barriers to Entry
- What resources, knowledge or skills does it take to enter this business?
- Regulations?

5) Competitive Analysis
- Who are the competitors, i.e. who solves the same problems?
- Major competitors products & services, strengths & weaknesses
- Market share? Marketing Strategies?
- Key success factors?
- What distinguishes products / business from rivals?

6) Market Analysis
- Define target market
- Who are the target customers?
- Characteristics?
- Articulate Value Proposition
- Why will they buy?
- Our solutions to their problems?
- What pains will it ease?
- Benefits? Differentiating factors?

7) Marketing Plan
- Concentrate on Opportunity - what the product / service is solving
- When is breakeven point?
- Customers' buying behaviour?
- What is each customer's value to business?
- 1-time service / annuity business?
- frequency of purchase?
- brand loyalty?
- How to sell the product?
- Product / Price / Place / Promotion (Word-of-mouth/sales promotion/ direct sales/ advertising

8) Operations Plan
- Breakeven point
- Key success factors
- Sourcing materials
- Technology innovation in manufacturing / distribution process
- Geographical location
- Labour
- Pricing Strategy

9) Management Summary
- Experience, accomplishments, reputation, skills /knowledge, commitment level, motivation
- Team's strengths
- Acknowledge & address team weaknesses
- Management portfolio

10) Financial Plan
- Breakeven Point
- Risk / Return Graph

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