Writing a Business Plan

Writing a Business Plan

• A business plan tells a story, starting with the value proposition, how it will be implemented, and why it's needed in the market.
• It should include an introduction, a description of the market, the resources needed to service the market, and the eventual goal.

Content of a Business Plan

• A business plan is not just for investors, but for the entrepreneur to refine and clarify their vision.
• Investors read the plan to gauge the level of sincerity and seriousness of the entrepreneur and their team.

Key Parts of a Business Plan

• The plan should include:
  • The solution itself
  • A business model
  • Market analysis
  • Financials that align with the rest of the plan

Salient Points of a Business Plan

• Objectives of the plan should be:
  • To obtain funding
  • To provide a plan for early corporate development
  • To guide the organization towards meeting its objectives
  • To explain how the company's business will evolve
• The plan should be:
  • Easy to read
  • Market-driven
  • Descriptive of the competition
  • Detailing the marketing and distribution plan
  • Highlighting the company's uniqueness
  • Emphasizing the management's strengths
  • Showcasing attractive, realistic projections

Elements of a Business Plan

Cover Sheet

• Includes contact details, disclaimers, and date of representation
• Clearly states confidentiality and proprietary rights
• Disallows distribution of information without prior written permission

Executive Summary

• Includes:
  • Introduction (elevator pitch, management team, opportunity, and objective)
  • Mission statement (larger plan and vision)
  • Key considerations (resources, challenges, and market dynamics)
  • Objectives (business objectives)
  • Expected accomplishments (achievements in three years)
  • Required capital (amount needed for product development and launch)

Operations

• Includes information on:
  • Management team (names, roles, responsibilities, and experience)
  • Company ownership (breakdown of shares held by each party)