Business plan
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A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.
Business plans may target changes in perception and branding by the customer, client, taxpayer, or larger community. When the existing business is to assume a major change or when planning a new venture, a 3 to 5 year business plan is required, since investors will look for their investment return in that timeframe.
Typical structure for a business plan for a start up venture:
- cover page and table of contents
- executive summary
- mission statement
- business description
- business environment analysis
- SWOT analysis
- industry background
- competitor analysis
- market analysis
- marketing plan
- operations plan
- management summary
- financial plan
- attachments and milestones
Typical questions addressed by a business plan for a start up venture:
- What problem does the company’s product or service solve? What niche will it fill?
- What is the company’s solution to the problem?
- Who are the company’s customers, and how will the company market and sell its products to them?
- What is the size of the market for this solution?
- What is the business model for the business (how will it make money)?
- Who are the competitors and how will the company maintain a competitive advantage?
- How does the company plan to manage its operations as it grows?
- Who will run the company and what makes them qualified to do so?
- What are the risks and threats confronting the business, and what can be done to mitigate them?
- What are the company’s capital and resource requirements?
- What are the company’s historical and projected financial statements?
See also
Market segmentation, Business Intelligence, Business models
Material
Books
- Pinson, Linda. (2004). Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. 6th Edition, Dearborn Trade: Chicago, USA.
- Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993), The Ernst & Young Business Plan Guide. New York: John Wiley and Sons.