example of a business plan

example of a business plan

Developing a Business Plan for Success

1. Executive Summary

I will follow with a brief description of the business in its current state today and end with a conclusion discussing the decision-making process which has helped us come to the business plan in place today.

The executive summary will define the purpose of the business plan. I will discuss the nature of the business, the target market, the marketing and sales plan, the organizational plan, and the financial plan. Each topic will be discussed briefly, highlighting the most important information. This will then give potential investors enough information to determine whether they would like to see the full business plan and make an informed decision on whether to invest in the company or not.

I start off the report with the basics and a few key points. I introduce the company and give a brief history on the business. Then I talk about strengths and weaknesses of the company. I follow with the type of service and the research. I try to keep it simple because if they want to read more, that is why the rest of the report is in place. However, if that is the only section that they read, they will then have an idea of what product or service and what it did or will take to make it a reality. This will allow them to determine if they are interested in what you are selling or providing. The service is called ‘X-treme Fitness Kit’. This is a product that is offered by DeltaFitness.

2. Business Description

The business description usually begins with a short description of the industry. When describing the industry, discuss the present outlook as well as future possibilities. You should also give information on all the various markets within the industry. For example, if the restaurant industry is what you are entering, you should describe if it is a fast food chain, casual dining, gourmet food, catering, or nightlife restaurant. You should also write the purpose of your business, are you trying to provide a service, a product or both. The last part of the business description is the mission that should state the primary goals and vision of the company. You need to remember the mission is only for you and it should be something obtainable. With that said, your mission will probably change because it should remain in sync with your company’s goals and objectives.

3. Market Analysis

– Size of the market and its growth rate, which can be deduced from government statistics and trade associations. – Profit potential: one needs to identify where the market is in its life cycle. If there are high profits that can be earned from this market, many firms will enter it and, over time, it will lead to intense competition. This may then result in price wars and ultimately reduce profits. If the market is still in the development stage and has yet to attract more companies, it can be considered a good market to enter. The profit potential includes a projection of the amount of money the business expects to earn and how much the business has to risk to earn that money. A break-even analysis needs to be done at this stage. This is a financial plan which shows at what point and how the business expects to break even. – Competition level and trend: it is important to know who else is providing a similar product or service. A high level of competition means that it is difficult to differentiate one product from another. If the competition is tough, the business may not earn any profits and it may result in failure. It is important to identify the competition trend. Sometimes it may be too intense and may not pay off in the long term, and sometimes there may be no competition at all. – Customer needs: it is important to know the specific needs, wants, and preferences of the customers so that one can address them with the product. Failure to understand and satisfy customer needs will lead to the firm’s downfall.

Market analysis is defined as reviewing the target market. This refers to the potential customers of a product on which a business should direct its efforts. A thorough analysis of the market should consider the following factors:

4. Marketing and Sales Strategy

Product positioning is a major factor in purchasing decisions and affects brand image and loyalty. The main goal is to get the consumer to list your product as the best solution to their problem. The more specific the customer and product, the easier it is to make targeted an effective marketing plan. Pricing decisions are always difficult, but regardless of the pricing strategy, it is important to show the value of the product relative to the price. This may require a comparison of relative cost to the competition, or educating consumers on features that make the product superior. High price products may also require a longer-term stair step sales strategy.

The first step in the marketing strategy is to define a target customer. Once you have decided on the product to be sold you must then decide what type of personal will buy this product. Consider demographics and psychological factors to get inside the head of the potential consumer. Next is to consider the potential consumer size. This is different than market size because it gauges the number of consumers who would actually consider buying your product. With this info you can calculate the market potential by multiplying the potential consumer size by the market size of the product category. Now you must decide if the best strategy is to go after the potential consumers or the market itself. Usually the best strategy is to try and take away market share from the competition, but if the product is too radical and market is not yet existent, you may have to educate consumers on the new product category.

A business plan is not complete without a specific marketing and sales strategy. This strategy should include such things as the marketing plan on how you plan on selling the product and where, the pricing plan, the product position in which market, and the sales plan on who will be selling the product and how. It is important to develop a marketing and sales strategy that promotes a cooperative atmosphere between the sales, marketing, and product teams. Coming up with the best strategies and winning themes requires everyone to have a clear understanding of the product, customer, and competition. And by spelling out your sales strategy, you’ll be able to create an informed and intelligent sales force.

5. Financial Projections and Funding

Every business is established to provide services and products to society with the intention of making a certain profit from it. The following section will help you put all your business ideas into a plan on how to achieve the targets set. To fulfill your business potentials, it will definitely need excellent management from the business owner. A well-built business plan consists of the area the business owner wants to achieve, and the main central component is how the business resources are going to be used. This chapter provides steps in building financial projections for the business plan. Create your business model. A business model consists of how the company generates the products to be sold and, in the end, generates profit from it. Sometimes it is also described as a profit model. The business model can use existing methods or new and innovative methods that will distinguish you from the other competitors. The model selected should best suit the type of business you are planning, and according to the business owner, it will bring the business to positive returns in the early stage. If your business is involved in providing services at events, the best model to adopt is the cost-plus model. Describe how your business will generate cash and make steady income. Source of revenue and high return date. This section is to plan how your product will reach the customers’ hands. If it is a type of product that can be sold online or can be put in retail stores, it is best to find the cheapest way to do it and see how it will affect your cost. Next, find the break-even point; the point where total income from sales equals total expenses to make the product. Then, plan how to return the capital used to make the product and target how much profit you want to achieve. From here, the estimation of how successful your product will be is determined. Usually, for a start-up business, it will take between 1-2 years to make the product a success if sufficient income is generated and returned. Estimated cost and resources. This is the planning of how and the resources that will bring a product. For the costs incurred, try to price every cost item, find the best purchase deal, and the time range for the cost must be before the rate of inflation and future estimated costs. Step how it can bring a positive impact into the product. For resources, it is classified into sectors. Human resource planning is very varied because the cost of employment today is uncertain and rising. It is best to hire employees if there is already substantial income and return. Then plan the employee duties, type of pay, and anticipated increase in employment costs. The last is to plan the employment duration and time to release the employment if it’s not beneficial to the product. Next is to plan how every cost item will affect the product, and the best method is to make a specific plan and Gantt chart. To sum it up, it’s allocating time to products, and it affects the sequence and time to make the product. A new product development and resource must prove it can bring high long-term outcomes. So plan with detailed estimation how every newly developed product could replace existing cost items into better outcomes.