The Finer Points of a Business Plan
My web site contains a page addressing the value of writing a business plan and gives a detailed outline. In addition to my web site, there are many other practical references for preparing a business plan. The following is a brief summary from How to Really Create a Successful Business Plan October 2000 By: David E. Gumpert
Keep in mind that after the first two items, the titles of the subsequent sections can vary. But every business plan should cover the subjects addressed in this overview:
Cover Page
On the cover page goes the name of your company, its address and phone number, and the chief executive's name.
The Company
The business plan must provide basic information about your company: its past, present, and future. If it's a start-up, about the evolution of the market. Information is necessary as well about your company's current status. And what is it's future strategy? What are its goals and what actions are required to achieve its goals?
The Market
This is your assessment of the customer groups you've targeted, other customer groups you might pursue, the competition, and marketing efforts thus far. Is the market growing, how fast is it growing, and what evidence do you have that it is interested in your product or service?
The Product/Service
Here is where you describe your product and/or service and what makes it special and attractive. What are the components of the product/service? How much do you charge? What services don't you provide? What kind of warranties or guaranties do you provide and what are its particular provisions?
Sales and Promotion
This is your assessment of how you intend to carry out your marketing plan--how you'll reach your customers and sell to them. Do you have an in-house sales force or will you use direct mail, or contracted telemarketers to sell your product/service? What kind of public relations do you have planned? Will it be done internally or will you hire a public relations firm?
Finances
Here is where you detail your past results, if there are any, and your expectations for the future. This section should include cash flow projections, profit-and-loss statements, and balance sheets. All the figures should be cast in traditional accounting format.
Keep in mind. . . The order of the subjects listed here is not random; they are given in order of importance. It is no accident hat information about markets comes before information about products/services
As I've indicated, there's more than one way to write a business plan. Indeed, there are infinite variations on the theme. The only thing that really counts is if the plan does what it's supposed to do: sell you and others whose support you need.
Keep in mind that after the first two items, the titles of the subsequent sections can vary. But every business plan should cover the subjects addressed in this overview:
Cover Page
On the cover page goes the name of your company, its address and phone number, and the chief executive's name.
Table of Contents
This should include a logical arrangement of the sections of your business plan, with page numbers.
Executive Summary
The Company
The business plan must provide basic information about your company: its past, present, and future. If it's a start-up, about the evolution of the market. Information is necessary as well about your company's current status. And what is it's future strategy? What are its goals and what actions are required to achieve its goals?
The Market
This is your assessment of the customer groups you've targeted, other customer groups you might pursue, the competition, and marketing efforts thus far. Is the market growing, how fast is it growing, and what evidence do you have that it is interested in your product or service?
The Product/Service
Here is where you describe your product and/or service and what makes it special and attractive. What are the components of the product/service? How much do you charge? What services don't you provide? What kind of warranties or guaranties do you provide and what are its particular provisions?
Sales and Promotion
This is your assessment of how you intend to carry out your marketing plan--how you'll reach your customers and sell to them. Do you have an in-house sales force or will you use direct mail, or contracted telemarketers to sell your product/service? What kind of public relations do you have planned? Will it be done internally or will you hire a public relations firm?
Finances
Here is where you detail your past results, if there are any, and your expectations for the future. This section should include cash flow projections, profit-and-loss statements, and balance sheets. All the figures should be cast in traditional accounting format.
Keep in mind. . . The order of the subjects listed here is not random; they are given in order of importance. It is no accident hat information about markets comes before information about products/services
As I've indicated, there's more than one way to write a business plan. Indeed, there are infinite variations on the theme. The only thing that really counts is if the plan does what it's supposed to do: sell you and others whose support you need.
posted by AlpacaBanker @ 6:44 PM
0 comments
