Executive Summary
BUSINESS PLAN Assessment
Complete Evaluation of Each Component
- This is the most important section because it has to convince the reader that the business will succeed.
- In no more than three pages, you should summarize the highlights of the rest of the plan. This means that the key elements of the following components should be mentioned.
- The executive summary must be able to stand on its own. It is not simply an introduction to the rest of the business plan, but rather discusses who will purchase your product or service, what makes your business unique, and how you plan to grow in the future.
- Because this section summarizes the plan, it is often best to write it last.
2. Description of the Business
- This section should provide background information about your industry, a history of your company, a general description of your product or service, and your specific mission that you are trying to achieve.
- Your product or service should be described in terms of its unique qualities and value to the customer.
- Specific short-term and long-term objectives must be defined.
- You should clearly state what sales, market share, and profitability objectives you want your business to achieve.
Description of the Business
- Key Elements
a. What type of business will you have?
b. What products or services will you sell?
c. Why does it promise to be successful?
d. What is the growth potential?
e. How is it unique?
3. Marketing
- There are two major parts to the marketing section.
- The first part is research and analysis:
- Here, you should explain who buys the product or service-in other words, identify your target market.
- Measure your market size and trends, and estimate the market share you expect. Be sure to include support for your sales projections. For example, if your figures are based on published marketing research data, be sure to cite the source. Do your best to make realistic and credible projections.
- Describe your competitors in considerable detail, identifying their strengths and weaknesses. Finally, explain how you will be better than your competitors.
- The second part is your marketing plan:
- This critical section should include your market strategy, sales and distribution, pricing, advertising, promotion, and public awareness efforts.
- Demonstrate how your pricing strategy will result in a profit. Identify your advertising plans, and include cost estimates to validate your proposed strategy.
Marketing
- Key Elements
a. Who will be your customers? (target market)
b. How big is the market? (number of customers)
c. Who will be your competitors?
d. How are their businesses prospering?
e. How will you promote sales?
f. What market share will you want?
g. Do you have a pricing strategy?
h. What advertising and promotional strategy will you use?
4. Operations
- Key Elements
a. Have you identified a specific location?
b. Have you outlined the advantages of this location?
c. Any zoning regulations or tax considerations?
d. Will there be access to transportation?
e. Will your suppliers be conveniently located?
5. Management
- Start by describing the management team, their unique qualifications, and your plans to compensate them (including salaries, employment agreements, stock purchase plans, levels of ownership, and other considerations).
- Discuss how your organization is structured; consider including a diagram illustrating who reports to whom.
- Also include a discussion of the potential contribution of the board of directors, advisors, or consultants. Finally, carefully describe the legal structure of your venture (sole proprietorship, partnership, or corporation).
Management
- Key Elements
a. Who will manage the business?
b. What qualifications do you have?
c. How many employees will you have?
d. What will they do?
e. How much will you pay your employees and what type of benefits will you offer them?
f. What consultants or specialists will you use?
g. What legal form of ownership will you have?
h. What regulations will affect your business?
6. Financial
- Three key financial statements must be presented: a balance sheet, an income statement, and a cash-flow statement.
- These statements typically cover a one-year period. Be sure you state any assumptions and projections made when calculating the figures.
- Determine the stages where your business will require external financing and identify the expected financing sources (both debt and equity sources).
- Also, clearly show what return on investment these sources will achieve by investing in your business.
- The final item to include is a break-even analysis. This analysis should show what level of sales will be required to cover all costs.
- If the work is done well, the financial statements should represent the actual financial achievements expected from your business plan.
- They also provide a standard by which to measure the actual results of operating your business.
- They are a very valuable tool to help you manage and control your business.
Financial
- Key Elements
a. What is your total expected business income for the first year? Quarterly for the next two years? (forecast)
b. What is your expected monthly cash flow during the first year?
c. Have you included a method of paying yourself?
d. What sales volume will you need to make a profit during the three years?
e. What will be the break-even point?
f. What are your projected assets, liabilities, and net worth?
g. What are your total financial needs?
h. What are your funding sources?
7. Critical Risks
- Discuss potential risks before they happen. Here are some examples:
- price cutting by competitors,
- potentially unfavorable industry-wide trends;
- design or manufacturing costs that could exceed estimates;
- sales projections that are not achieved.
- The idea is to recognize risks and identify alternative courses of action.
- Your main objective is to show that you can anticipate and control (to a reasonable degree) your risks.
Critical Risks
- Key Elements
a. What potential problems have you identified?
b. Have you calculated the risks?
c. What alternative courses of action exist?
8. Harvest Strategy
- Ensuring the survival of a venture is hard work. A founder's protective feelings for an idea built from scratch make it tough to grapple with issues such as management succession and harvest strategies.
- With foresight, however, an entrepreneur can keep the dream alive, ensure the security of his or her venture, and usually strengthen the business in the process.
- Thus a written plan for succession of your business is essential.
Harvest Strategy
- Key Elements
a. Have you planned for the orderly transfer of the venture assets if ownership of the business is passed to this corporation?
b. Is there a continuity of business strategy for an orderly transition?
9. Milestone Schedule
- This section is an important segment of the business plan because it requires you to determine what tasks you need to accomplish to achieve your objectives.
- Milestones and deadlines should be established and monitored on an ongoing basis.
- Each milestone is related to all others, and together all of them provide a timely representation of how your objective is to be accomplished.
Milestone Schedule
- Key Elements
a. How have you set your objectives?
b. Have you set deadlines for each stage of your growth?
?if you see the attachment file it already contains all the details that needed for the slides. please follow the details accordingly. 15 slides should be okay ?one more thing, the business plan should be related with technology.