new writing b-plan

8/8/2019 New Writing B-Plan

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Biz Acumen

VENTURE(the age of entrepreneurship)


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Co mp o nents of a g ood B-PlanExecutive Summary

The Concept

Market Analysis

Manufacturing and Operational PlansManagement and Ownership

The Economics Of Plan

Marketing Strategy

The Expansion Phase

Risk Analysis

Finance and Funding


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Executive Summary

Outline of the business concept

Target market and the projections

Strategy, economics, profitability and potential returns

The team and the offering


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Contents

The Mission Statement - The mission statement briefly explains the thrustof your business. It should be as direct and focused as possible, and itshould leave the reader with a clear picture of what your business is allabout.

Date business began

Names of founders and the functions they perform

Number of employees


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Location of business and any branches or subsidiaries

Description of plant or facilities

Products manufactured/services rendered

Banking relationships and information regarding current investors

Summary of company growth including financial or markethighlights

Summary of management's future plans - With the exception of the mission statement, all of the information in the ExecutiveSummary should be highlighted in a brief, even bulleted, fashion.


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T ipsThe executive summary should be the last section you write. After you'veworked out all the details of your plan, you'll be in a better position tosummarize it.

To assist the reader in locating specific sections in your business plan,include a table of contents directly following the executive summary. Makesure that the content titles are very broad; in other words, avoid detaileddescriptions in your table of contents.


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Company Summa


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The

ConceptThe nature of the industry

Concept of the company

This includes :Company descriptionLegal DescriptionHistory of The CompanyCurrent Status and future goals

Services provided/product produced

The strategy for entry and expansion


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Try t

oanswer

foll

owing

Does Your Business Have A HISTORY In The Business?

What's The Legal Form Of Business Ownership?

Where Can Your Business Be Found And What Kind Of Facilities Do YouHave?

Do You Have An Internet Web Site?


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Avo

id

able mistakesIncluding far too much detailed information about your business

Providing information that an investor would consider your "personalopinion"

Appearing as though you have no business history or business purpose

Leaving out important business and legal particulars

Writing the section in an unorganized or confusing manner


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Market Analysisindustry Description and Outlook

target market information

market test results

lead times

an evaluation of your competition

regulatory restrictions


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O rganizati o n & M anagement

Organizational Structure

Ownership Information which includes names of owners ,percentageownership, extent of involvement with the company, forms of ownership

Key managerial posts and their compensation

Board of Directors' Qualifications

Shareholders - their rights and restrictions


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Ec

on

omics

O f Plan

Gross and operating margins

Expected profit and sustenance

Operating costs

Expected Break even point and time to reach a positive cash flow


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Imp o rtant termsFi x e d c o sts: These are costs that are the same regardless of how many items you sell. Allstart-up costs, such as rent, insurance and computers, are considered fixed costs since youhave to make these outlays before you sell your first item.

V ariable c o sts: These are recurring costs that you absorb with each unit you sell.

BR E AK E V EN AN ALYS IS

Helps in determining how much sales volume your business needs to start making a profit

BREAK EVEN POINT(IN UNITS)

Breakeven Point = Fixed Costs/(Unit Selling Price - Variable Costs)

Above the breakeven point, every additional unit sold increases profit by the amount of theunit contribution margin, which is defined as the amount each unit contributes to coveringfixed costs and increasing profits.

Unit Contribution Margin = Sales Price - Variable Costs


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M E TH OD 1:


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M et h od 2:

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

quarter 1 q uarter 2 q uarter 3 q uarter 4

total revenue

fixed cost

variable cost

total cost


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BALA N C E S H EE T

The Balance Sheet is the financial statement that reports theassets, liabilities and net worth of a company at a specific point in time.

It must include:

Current assets

Noncurrent assets

Current liabilities


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M arketing & Sales Strategies

Marketing strategy outline

Pricing, sales tactics and publicity

Distribution Strategy

Customer satisfaction

sales force strategy and sales activities


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Expansi

on P

hase

Product improvisation

The difficulties and risks involved

Costs incurred


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Risk AnalysisCritical risks and problems

Assumptions


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Exit Strategy


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Finance an d Fun d ing

Desired financing

Use of funds

Investors and Returns expected


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QU ERIES

new writing b-plan

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