Business Plan
Business Plan is a formal document created by the entrepreneur describing the strategy & operations of the proposed ventures. Typical structure for a business plan for a startup venture
- Cover page and table of contents
- Executive summary
- Description of Venture
- The Marketing Plan
- The Operating Plan
- Research Design &Development Plan
- Organizational & Management Plan
- Financial plan
- Contingency Plan
- Appendix
Executive Summary
It is a brief summary of the entire plan, highlighting all the important aspects of the plan in a concise but compelling manner. It should be not more than 3 or 4 pages & should provide the technical, marketing, managerial & financial details in detail.
Description of Venture
This sections contains the following
- A description of the business opportunity
- Details of the strategy to capture this opportunity
- Type of Businesses
- Products or services
- Growth potential
- Uniqueness
The Marketing Plan
It should provide an analysis of market potential: target market, the market size, the market growth trends & the likely market share. After detailing the market potential, the strategy of achieving it has to be proposed. It can have the following elements:
- Product Plan
- Distribution Plan
- Pricing Strategy
- Promotional Plan
The Operating Plan
It consists of description of the way day to day activity of business will be organized. For manufacturing Firms the plan must consider supply of raw materials, availability of transportation, cost & supply of labour, proximity of suppliers etc. For service industries the plan should provide an analysis of the business transaction, the core activities as well as support activities, necessary for capturing maximum value & methods for maintaining service quality. Also it's advisable to add location, advantages, access etc.
Research, Designing & Development Plan
It should contain the following:
- Legal form of ownership
- Management team, their qualification & experience
- Organization structure
- Roles & Responsibilities
- Employment conditions & benefits
Financial Plan
It includes forecasted sales, cost of goods sold, general & administrative expenses. Details to be provided will include:
- Expected Business Income
- Expected monthly cash flow
- Break event point
- Projected assets, liabilities & net worth
- Total financial needs
- Funding sources
Contingency Plan
This plan looks at the changes & potential problems & risks the venture could face as result of these changes .It also suggest the alternative course of action which may be considered in case of problems
Appendix
It contains the reference materials that have been pointed to the main report. These could include research data, copies of contracts, agreements, competitive information's, documents, letter of approvals, business relationships etc.