Business Plan Guide  

Preparing a business plan is essential and complicated task. Essential for:

• Determination whether a business/project/venture is feasible.
  
  
• Capital raise.

• Strategic planning.
  
• Marketing.
  
• Finance.

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 Marketing 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.
    

Detail of the investment in the business.

• Specify the resources.
  
  • Equity.
    
  • Loans and mortgages.
    
  • Credit line.
    
  • Other resources.
    

• Specify the uses.
  
  • Equipment and machinery.
    
  • Working capital.
    

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-starter.com