BP – Project Planning (C) Lim Sei cK

Writing a Business Plan Business Plan is a document that outline the basic concept underlying a business and describes how that concept will be realized. ▫ The writing process is just as important as—if not more so than—the finished product. ▫ The plan represents what is has been anticipated; a good entrepreneur adapts the plan to fit the unexpected.

Users of Business Plans

Business Plan Outline Section Heading Cover Page Table of Contents Executive Summary Industry, Target Customer, and Competitor Analysis Company Description Product/Service Plan Marketing Plan Operations and Development Plan Management Team Critical Risks Offering Financial Plan Appendix of Supporting Documents

The Content of a Business Plan Cover Page ▫ Company name, address, phone number, fax number, and website ▫ Tagline and company logo ▫ Name and contact information of contact person ▫ Date on which the business plan was prepared ▫ Confidentiality disclaimer

The Content of a Business Plan Table of Contents ▫ Provides a sequential listing of the sections of the plan, with page numbers

The Content of a Business Plan Executive Summary/Synopsis/Narrative What is the business? What is the market? What is the potential for the business? Forecast profit figures Funding requirements Prospects for the investor/ lender

The Content of a Business Plan Industry Description ▫ Size and expected growth of the market ▫ Industry size, growth rate, trends, and competitors ▫ Analysis of market by segments ▫ Identification of target segments

The Content of a Business Plan Target Customers ▫ Demographics and psychological variables— values, attitudes ▫ Customers (existing & potential) - who they are, how they buy, why they buy

The Content of a Business Plan Competitor Analysis ▫ Product or service attributes that are or are not provided by competitors ▫ Competitors - who they are, ownership, size, market share, likely response to the challenge

Suggestions for Writing a Business Plan Provide table of contents and section tabs. Use visual aids—graphs, exhibits, and tabular summaries. Indicate that all information is confidential. Ask other entrepreneurs to review the plan.

What Not to Do! Mistakes to avoid in preparing a business plan: ▫ Failing to provide solid data. ▫ Failing to describe the product in lay terms. ▫ Failing to thoroughly analyze the market. ▫ Including financial statements that are overly detailed or incomplete. ▫ Using bad grammar. ▫ Making the overall plan too long.

We will be discussing about your project’s: Company Description Product/Service Plan Marketing Plan Operations and Development Plan Management Team Critical Risks Offering Financial Plan Appendix of Supporting Documents For the following weeks…

For today: try to describe A) What industry are you in? B) Who are your target customers? C) Any competitors in the same area?