BUSINESS PLAN OUTLINE

BUSINESS PLAN OUTLINE
Executive Summary: 2-6 page summary that precedes the completed Business Plan.

I. Company Description
II. Product or service
III. Industry Analysis
IV. Market Analysis
V. The Competition
VI. Management & Organization
VII. Marketing Strategy
VIII. Operations
IX. Financial Plan
X. Expansion/Exit Strategy
XI. Appendix: Supporting documents and contingency plan


1. COMPANY DESCRIPTION
This can best be described under:
 Vision Statement
 Mission Statement
 Values
 Detailed Business Concept

THE VISION STATEMENT
A succinct and inspiring statement of what the company intends to become and achieve in the future.
 What do you want to see in the future?
 Draw on the beliefs, mission, and environment of the organization.
 Is it positive and inspiring?
 Be open to dramatic modifications to current organization, methodology, teaching techniques, facilities, etc.


THE MISSION STATEMENT
A precise description of what your organization does. It should sum up your business objectives in a few sentences.
 What is the nature of your business?
 What is your philosophy (what principles guide your work)?
 What is your corporate culture?
 What are your financial goals?
 How do you want your company viewed in the market place?
Mission and values go hand in hand. A lofty mission statement means nothing if it is not in congruence with the values practiced by the organization. A good example of this is Enron.

VALUES AND VALUE STATEMENTS
 Effective organizations identify and develop a clear, concise and shared meaning of values/beliefs, priorities and direction so that everyone understands and can contribute.
 Once defined, values impact every aspect of your organization.
 An effective leader with support and nurture this impact or the process of identifying values will have been a wasted effort. People will feel fooled and misled unless they see the impact of the exercise within your organization.

DETAILED BUSINESS CONCEPT
A more thorough description of the business idea
 Product or service description.
 The primary customer.
 Benefits of the product or service.
 Distribution.
 Possible spin-offs.
 Environmental impact (if necessary).
 For existing businesses, company’s past achievements and strengths, problems and weaknesses.
 Also company details (when formed, legal structure, principal investors).

2. THE PRODUCT OR SERVICE
Easy to understand description of your product or service offering
 Timeline of reproduction or offering of product.
 Is product in the market or in Research and Development stage
 If it’s a new offering, describe the need for it.
 Barriers you face in bringing the product to the market (e.g. government regulations, competing products, development costs, material needs).
 The advantage that your product has over your competitors (competitive advantage)-patents, copyrights, etc
 How will you be able to price competitively and still maintain a healthy profit margin?
Avoid technical or industry jargon.

3. THE INDUSTRY ANALYSIS
Clearly explain why your product/service will give your company a sustainable competitive advantage
 The size, maturity and competitive nature of the industry.
 The barriers to entry and growth.
 How changes in the economy affect the industry.
 The industry’s financial position and performance.
 The role of innovation and technological change.
 How the industry is affected by government regulation.
Collect supporting documentation for the appendix

4. THE MARKET ANALYSIS
Demonstrate that you have a thorough knowledge of your target market through a complete analysis.
 A general description of your target market
 The market niche you plan on capitalizing on and why
 The size of the niche market
 The need for your product or offering by this market
 The percentage of the market you project to capture
 The growth potential of the market and whether your share will increase or decrease as the market grows
 How you will satisfy market growth
 How you will price your goods in the growing competitive market
Understand the drivers of purchasing decisions
 The specific characteristics that influence purchasing behavior
 The criteria customers use to assess product or service quality
 Problems that customers have with current suppliers
Collect supporting documentation for the appendix

5. THE COMPETITION
Show that you know who the other players are and fully understand how you fit into the competitive landscape
 Your closest competitors, where they are located, and their target markets
 Percentage of the market that each competitor has
 How long they have been in business and their revenues
 What they do well and where they could improve
 How you are better than your competitors
 How your operations differ from those of your competitors
 How you will compensate for areas where competitors are better than you
Analyzing competitors is an on-going process

MAKING THE CRITICAL DECISION
Use the feasibility study to help you make a date-driven decision about the viability of your business concept.
Revise or abandon the business concept if your data shows it’s not a viable business concept.