Parts of A Business Plan

PARTS OF A
BUSINESS PLAN
EXECUTIVE
SUMMARY
This is where you identify your business and the product or service it will
be offering. This needs to be short, preferably not more than half a page,
in order to attract and retain the attention of people.
MAIN ELEMENTS INCLUDED IN AN EXECUTIVE
SUMMARY:
 Business Concept - Describes the company, the commodity and the market it
represents. Exactly what will be offered, to whom and why the company will
have a competitive advantage, it should point out.
 Financial Characteristics - Highlights the company's significant financial points
including revenue, earnings, cash flows and investment returns.
Financial Requirements - Clearly state the capital required for starting and expanding the
business. It should explain how the capital is to be used, and if any, the equity to be used for
financing. If the initial capital loan is based on securities rather than equity, you should also
state the source of the collateral.
Current Business Position - Provides detailed information about the company, its legal
mode of operation, the principal owners and key staff when it was created.
Significant accomplishments - Details any innovations that are important to business
success within the group. Significant milestones include things such as patents, inventions,
location of a factory, any important contracts that need to be in place for product creation or
the outcomes of any test marketing that has been carried out.
BUSINESS
DESCRIPTION
The next section that should appear in your business plan is an
overview of your organization. It's best to provide important business
details, your priorities and the customers you’re aiming to serve. Your
company overview should also explain how your business will stand
out from those in the industry and how it will benefit your target
audience with the goods and services you are delivering.
Business description builds the business
structure which includes the following:
What is the name of the business?

Where is it located?
What is the business structure: Corporation, Proprietorship or
Limited Liability Company?
Why is this business unique?
Why will it succeed?
What factors will cause the business to grow?
MARKET ANALYSIS
• Start your market research by identifying the market in terms of scale, structure,
opportunities for growth, trends and potential sales.
• Proof that you know the ins and outs of the particular sector in which you want
to participate
• Need to use data figures, to speak about where the market has been, where it's
going to go and how your business will fit in.
• You will also need to include information about the customers you'll be selling
to, such as their level of income.
COMPETITIVE ANALYSIS
 Who are your strongest competitors?
 What are their strengths and weaknesses?
 How do they attract customers?
 Why do customers buy from them?
 Are your products price-competitive?
 Are your competitors' businesses increasing or decreasing?
 What will make your company different and better than your competition?”
DESCRIPTION OF
MANAGEMENT AND
ORGANIZATION
 Who will manage the company and each of its departments?
 What are the managers' experience and qualifications?
 How many employees are needed for full-time and part-time positions?
 What are the jobs and responsibilities of each employee?
 Will the company pay competitive wages and benefits?
 How will employees get training?”
ORGANIZATION AND BREAKDOWN OF
THE PRODUCT AND SERVICES
 What are the products or services you plan to offer?
 What are their features?
 What are their benefits?
 What makes these products and services unique?
 How do they meet the needs of your customers?
 How do they add value to the customers?”
MARKETING PLAN
• Pricing – how will you price the end product?
• Positioning – how does your product or service fit into
the market?
• Promotion – what channels will you use to attract and
communicate with customers?
• Profit – how much do you expect to make per item sold?
• Place – what are your sales outlets?”
 Advertising. Includes the advertising budget, creative message(s),
and at least the first quarter's media schedule.
Packaging. Provides a description of the packaging strategy. If
available, mock-ups of any labels, trademarks or service marks
should be included.
Public relations. A complete account of the publicity strategy
including a list of media that will be approached as well as a
schedule of planned events.
Sales promotions. Establishes the strategies used to support the
Sales promotions. Establishes the strategies used to support the sales
message. This includes a description of collateral marketing material as
well as a schedule of planned promotional activities such as special
sales, coupons, contests and premium awards.
Personal sales. An outline of the sales strategy including pricing
procedures, returns and adjustment rules, sales presentation methods,
lead generation, customer service policies, salesperson compensation,
and salesperson market responsibilities.
SALES
STRATEGY
REQUEST FOR FUNDING
Material. All raw materials used in the development of the product.
Direct labour. All labour costs associated with the development of
the product.
Overhead. All overhead expenses required to operate the business
during the development phase such as taxes, rent, phone, utilities,
office supplies, etc.
G&A costs. The salaries of executive and administrative personnel
along with any other office support functions.
Marketing & sales. The salaries of marketing personnel required to
develop pre-promotional materials and plan the marketing campaign that
should begin prior to delivery of the product.
Professional services. Those costs associated with the consultation of
outside experts such as accountants, lawyers, and business consultants.
Miscellaneous Costs. Costs that are related to product development.
Capital equipment. To determine the capital requirements for the
development budget, you first have to establish what type of equipment you
will need, whether you will acquire the equipment or use outside
contractors, and finally, if you decide to acquire the equipment, whether you
will lease or purchase it.”
FINANCIAL
PROJECTIONS
What are the projections of sales and cash flow for the first year?
What are the initial operating costs?
How much do you need for personal expenses, and where will these funds come
from?
How will you finance the start-up and growth of the business?
Do you have a bank loan or line of credit?
How long will it take to break even and have a positive cash flow?
THANK YOU

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PARTS OF A

What is the name of the business?

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