BUSINESS PLANBUSINESS PLAN

8.1 DEVELOP A BUSINESS 8.1 DEVELOP A BUSINESS PLANPLAN

8.1.1 8.1.1 The The Meaning of B.PMeaning of B.P

8.1.2 8.1.2 The The Purpose and Purpose and The Importance The Importance of B.Pof B.P

8.1.3 8.1.3 The The Characteristics Characteristics of a good B.Pof a good B.P

8.1.4 8.1.4 BusinessBusiness Plan FormatPlan Format

8.1.1 8.1.1 THE MEANING OF A THE MEANING OF A BUSINESS PLANBUSINESS PLAN

business plan business plan -is now very general -is now very general and flexible term, applicable to and flexible term, applicable to the the planned activities and aims of any planned activities and aims of any entity, individual group or entity, individual group or organization where effort is being organization where effort is being converted into resultsconverted into results, ,

for example: a small company; a large for example: a small company; a large company; a corner shop; a local company; a corner shop; a local window-cleaning business; a window-cleaning business; a regional business; a multi-million regional business; a multi-million pound multi-national corporation.pound multi-national corporation.

8.1.2 8.1.2 The Purpose and The The Purpose and The Importance of B.PImportance of B.P

A good business plan is A good business plan is essential for securing outside essential for securing outside funding.funding.

Creating a goodCreating a good business business plan  plan is often is often the first step in starting a the first step in starting a new businessnew business. .

Importance and Purpose of Finance Importance and Purpose of Finance SectionSection

Lenders may not even consider Lenders may not even consider working with you if you do not have a working with you if you do not have a thorough business plan. thorough business plan.

Importance and Purpose of Importance and Purpose of Executive OverviewExecutive Overview

The introductory sections of your The introductory sections of your business plan should include a business plan should include a description of your products and description of your products and services and an overview of your services and an overview of your company goalscompany goals

Importance and Purpose of Marketing Importance and Purpose of Marketing SectionSection

The business plan must include a market The business plan must include a market analysis and marketing plan. This section analysis and marketing plan. This section is important to show you have researched is important to show you have researched local competition to determine a need in local competition to determine a need in the area. the area.

Legal AspectsLegal Aspects The written business plan will help shape The written business plan will help shape

your ideas and goals as well as force you your ideas and goals as well as force you to complete research on insurance to complete research on insurance requirements, licensing requirements and requirements, licensing requirements and state and federal regulationstate and federal regulation

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8.1.3 8.1.3 The Characteristics of a The Characteristics of a good B.Pgood B.P A business plan should be detailed.A business plan should be detailed.

In listing your products and services In listing your products and services for example, for example, you should not really you should not really stop by just enumerating them.stop by just enumerating them. You You also should also should write down the write down the descriptions and scope of your descriptions and scope of your products and servicesproducts and services, touch base , touch base on production and identify means on on production and identify means on how you can market your "brain - how you can market your "brain - child" to your targeted niche. child" to your targeted niche.

. It should . It should include a market include a market research that identifies your research that identifies your competitorscompetitors, their , their share of the share of the market and the range of the market and the range of the products they produceproducts they produce. By . By learning how they conduct their learning how they conduct their operationsoperations, you may , you may learn tricks learn tricks of the trade in the businessof the trade in the business you you want to enter and you also get to want to enter and you also get to have a basic on what you can do have a basic on what you can do to excel.to excel.

. It needs to have . It needs to have a list of everything a list of everything you need.you need. Note that the word Note that the word everything here comprises of the everything here comprises of the equipment, technology, raw equipment, technology, raw materials, financial and other materials, financial and other resources that you may need when resources that you may need when starting and running your business starting and running your business ventureventure. Having all these listed will . Having all these listed will give you an ideagive you an idea on on how much how much capital you need beforecapital you need before you start and you start and how much money should you make how much money should you make in a day to make your business in a day to make your business survive.survive.

It also needs to be It also needs to be written in written in formal format and styleformal format and style. You . You have to remember that a have to remember that a business plan is something that business plan is something that you may have to present to your you may have to present to your business partners, financial business partners, financial firms and banks. So if you can, firms and banks. So if you can, refrain from using slang in any refrain from using slang in any part of your plan. part of your plan.

Finally, a business plan should Finally, a business plan should be be error - free.error - free. This is important This is important because your business plan because your business plan defines who you are as a defines who you are as a business personbusiness person. If it turned out . If it turned out sloppy, then that does not speak sloppy, then that does not speak too highly of you.too highly of you.

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8.1.4 8.1.4 BusinessBusiness Plan FormatPlan Format

All plans should include at least the All plans should include at least the elements listed below, and perhaps elements listed below, and perhaps

additional sections depending on the additional sections depending on the type of industry.type of industry.

Executive SummaryExecutive Summary Company BackgroundCompany Background Products or Service OverviewProducts or Service Overview Unique Selling Proposition and Unique Selling Proposition and

competitive advantagescompetitive advantages The MarketplaceThe Marketplace OperationsOperations

Leadership and management Leadership and management profiles including professional profiles including professional competenciescompetencies

Professional SupportProfessional Support

Risks and Threats assessmentRisks and Threats assessment

Financial forecasts including key Financial forecasts including key assumptionsassumptions

Relevant appendicesRelevant appendices

Table of contents.Table of contents. Executive summary or your Executive summary or your

business plan synopsisbusiness plan synopsis IntroductionIntroduction Purpose of preparing B.PPurpose of preparing B.P Company backgroundCompany background Background of ownerBackground of owner Organization of the company Organization of the company Finally, marketing plan.Finally, marketing plan.

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marketingmarketing - believed by many to  - believed by many to mean the same mean the same as advertising or as advertising or sales promotion, marketing actually sales promotion, marketing actually means and covers everythingmeans and covers everything. .

Marketing is Marketing is the process by which the process by which a business decides what it will a business decides what it will sell, to whom, when and how, and sell, to whom, when and how, and then does it.then does it.

marketing planmarketing plan - logically  - logically a plan a plan which details what a business will which details what a business will sell, to whom, when and how, sell, to whom, when and how, implicitly including the implicitly including the business/marketing strategy.business/marketing strategy.

salessales - the  - the transactions transactions between the business and its between the business and its customerscustomers whereby services whereby services and/or products are and/or products are provided in provided in return for payment. return for payment.

sales plansales plan - a plan describing,  - a plan describing, quantifying and phased over quantifying and phased over time, time, how the sales will be made how the sales will be made and to whomand to whom. .

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