business plan example

business plan example

Developing a Successful Business Plan

1. Executive Summary

A common executive summary consists of around 3 pages. Below is an outline of a typical executive summary. High-Tech Marketing’s purpose has been to promote the visibility of the business, so the fact that the reader reads the actual plan is good progress and this sample will also serve as a yardstick to measure our plans.

Though being at the start of the plan, the executive summary is better written in the final stages of the plan, when the entrepreneur actually has a clear understanding of the business and what is to be achieved. In any case, the format should follow a logical structure, making reference to other parts of the plan rather than being disjointed facts. The summary should set a happy medium avoiding repetition and also not be too concise. According to Pearce and Robinson, “it should contain enough detail to whet the readers’ appetite, but not so much detail that the reader could forego reading the actual plan”.

It is often said that the first impression is the last impression. This greatly pertains to a business plan. Potential investors are busy individuals, always inundated with competing demands for their time. A well-prepared executive summary is the first opportunity to grab their attention significantly and engage that the plan will be worth a further review.

This section should not exceed 5-6 pages. In its essence, it is the preface to the business plan. It must be persuasive and interesting, and it should capture the reader’s initial attention and encourage a thorough reading of the plan. Traditionally, the effective executive summary is thought to be a précis of the whole business plan, suitable to be read by the potential investors and decision makers. They should then have an in-depth knowledge of the whole venture. This will suffice in most cases, but it must be recognized that some decision makers may only be interested in one sector of the plan, e.g. banks concerned with financing, which an effective executive summary should be able to suffice their needs, though gives the essence of the whole plan.

The executive summary includes a “To whom it may concern” letter, names of promoters and their signature, address, name of the enterprise, the product it will offer, the location of the business and, in concise, the nature of the business.

A business plan is a written summary of an entrepreneur’s proposed business venture, its environment, and how it will succeed. It provides a systematic way of looking at things and methodically analyzing the elements which led to the will to become an entrepreneur, thus simplifying the complex matter. Business planning is an essential precursor to action. Also, for a venture to be successful, the entrepreneur must in order to plan his work and work his plan. This is very vital as it is often quoted that “A journey of a thousand miles must start with a single step” (Mao Tse-Tung) and a plan is that stepping stone which will assure his reaching the final destination and even help in achieving many more milestones. A well-formulated plan will not only provide clarity but also instill confidence that the task can be accomplished. Yet in comprehensive terms, planning will enable a person to see more of the activities with some logic, as well as reduce the element of chance.

2. Company Overview

The location and facilities section is simply a description of the company’s location and the physical facilities used. Include information on any facility expansion plans.

The management section should include a profile of the management team. This should include the organizational structure of the company and biographical information on key employees. Again, this can be done in general terms if there are confidential matters that you would prefer to withhold.

The company history will give the reader a good idea of the background of the company. This should start from the inception of the business to the present. It should include the founders and their backgrounds and motivations for starting the business. Also, include the history of the products and services and a profile of their development. Discuss the size and growth of the company. Where this information is sensitive, it can be discussed in general terms rather than being too specific.

1.1 Company History 1.2 Management 1.3 Location and Facilities

3. Market Analysis

Customer needs and desires What persons in your market want is an crucial piece of data to enable you. Desires will often be easy to set up. If your market is travellers a want they have is to journey from location to location so the target will be on transport solutions. A will need is something that a particular group of prospects is ready to spend for. If the parents of an affluent family members are planning a weekend break they may possibly require an individual to search just after their pets. This is an successful way to figure out a want, offering the pet sitting service to the mentioned households can be your ticket to a very well paid job.

One of the most essential stages in your market planning is finding out as much as you can about your market so as to be able to target it effectively. Failure to do this really is harmful to your chances of accomplishment. For a great deal of well-established firms who have determined prosperity through failing to totally take into account what their buyers want. “If I had asked persons what they wanted, they would have said more rapid horses” – Henry Ford. Post-it notes are somewhat successful! but this is because 3M did not just publish and hope for the ideal, they asked persons if it was a great concept before building it. A common misinterpretation is that market research is only essential when launching a new solution or service. It is crucial to fully grasp your recent prospects and the good reasons they are currently your customers. This helps make certain that you sustain the current success or develop solutions to adjust any negatives.

4. Marketing and Sales Strategy

Evaluate and modify overall production process. Will the customer be able to conveniently purchase and receive the product? We must evaluate how the client can obtain the finished product, for example, mail order, personal delivery, retail outlets, etc. There is a range of possibilities available. When evaluating and selecting the various methods, it is important to consider the effects it will have on the consumer and our company. Keep in mind the time and resources available for the delivery of the product. Each method will affect the cost of the product and the convenience for the consumer. It is essential that we identify our target customer segment and consider their wants and needs. Although retail outlets may be a convenient way for local consumers to purchase our product, if our target segment is price-sensitive teenagers, this may not be a viable option. Make decisions based on our target segment and the effects it will have on our competitive advantage and positioning in the market.

5. Financial Projections

After a sales forecast has been made, a business will need to think about the cost of sales, i.e. how much it costs in direct costs to make a sale, and then its gross margin before fixed costs. This analytical way of thinking will help the business think about its cost structure and how much volume it needs to break even. Volume targets are helpful to clearly quantify the sales forecast.

The heart of any financial projection is the sales forecast. The sales forecast is an estimate of the sales the business will be making over the coming years. This is normally based on a mixture of qualitative and quantitative information and will be a work in progress, often changing when the business plan is finished. It is important that a clear rationale for the sales forecast is given. A start-up business may have to base its sales forecast on market research data about the size of the market, then estimating its market share and converting that into sales volume.

Financial projections are a key part of the business plan. They are an educated guess on how much money will be coming into the business and how much and when the business will be spending money. For a start-up business, the business plan is based on some very basic and clear assumptions and is forward-looking. The aim is to show the inner logic of the business, thinking through the strategy and the practical operational aspects.