Business Plan Guide

Posted by B2B on: 2006-07-25 10:28:26



Assaf Katzir

Preparing a business plan is essential and complicated task. Essential for:
  • Determination whether a business/project/venture is feasible.
  • Capital raise.
Business plan preparation is complicated since it requires knowledge and experience in:
  • Strategic planning.
  • Marketing.
  • Finance.


Executive Summary

Summary of all the beneath chapters' content.




The Product/Service

Include in this chapter:
  • Detailed description of the offered product/service.
  • The reason for having a relative advantage over competitors.
  • Business profitability such as: gross profit, profit margins.



The Market and the Marketing Plan

This chapter contains the future plan and concept of marketing the offered products/services. For any elaboration, please refer to our stand alone Marketi
ng Plan - Guide
.
  • Current market analysis, using formal publications of statistical details.

  • Figures
    of the required market in order to show the business potential and market size.
  • Detailed description of each factor involved in the business opportunity.
  • Competitors and competition - Details of competitors (names, market share, products/services etc'), overlapping areas with the competitors.
  • Customers' characterization - Customers' identification (institutional customers, reoccurring customers
    etc') and their potential of buying products/services.

  • Business environments analysis - Definition and description of all the issues that can influence the business activity.

  • Strategic marketing targets and goals - set of strategic measurable marketing targets and goals such as:
    • Building wide and loyal customers circle for the long term.
    • Standing in sales program plan, presented in this business plan.
    • Positioning the business as high standard quality and service.
  • SWOT analysis - Strengths, Weaknesses, Opportunities and Threats. Specify for each element, several relevant point.

  • Marketing plan - Include
    several means that promote the business within the potential customers.
    • Possible marketing activities: direct mailing, advertisement in local and professional newspapers, agents etc'.
    • Specify the marketing activities for each customer type.
  • Pricing policy - Specify the pricing policy of products/services.
  • Marketing and sales cost estimation -
    • Specify all expected costs of the marketing and sales activities.
    • A forecast period of 3-5 years.
    • All assumptions taken in this plan should be specified.
  • Sales income estimation -

    • Specify all expected sales income.
    • A forecast period
      of 3-5 years.
    • All assumptions taken in this plan should
      be specified.



Human Resources and Operating Plan

  • Key persons -
    • Specify all key persons
      required for the business to succeed.
    • Specify the costs
      of hiring each key person.


  • General and administrative -
    • All assumptions
      taken regarding personnel should be specified.


    • Specify all expected costs of personnel.
    • Specify all
      expected fixed cost (rent, phone, electricity, insurance, maintenance etc').
    • Specify all expected adjustable costs.
    • A forecast period of 3-5 years.


  • Operation costs -
    • All assumptions taken
      regarding operation should be specified.
    • Specify all
      expected fixed cost (rent, phone, electricity, insurance, maintenance etc').
    • Specify all expected adjustable costs.
    • A forecast period of 3-5 years.



Investment Plan

Detail of the investment in the business.
  • Specify the resources.

  • Specify the uses.
    • Equipment and machinery.

    • Working capital.


Finance Plan

Specify a forecast of business outcomes.
  • For a period of 3-5 years.
  • According to all assumptions mentioned above.
  • Profit/loss report.
  • Cash flow report.

  • Break Even Point - Provide the business break even point. Provide several success' levels scenarios.


About the author:
Assaf Katzir is owner and CEO of Katzir Soze Investments Ltd

Additional useful and quality information for managers, start-ups and small businesses is available at http://www.business-starte
r.com



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