Building Blocks of an Effective Business Plan

So, you have a brilliant idea for a new business venture.

What is the first thing you need to do?

Dissect & Explore Your Idea

“An idea is great, but you need to be able to give it legs.”

Sujan Patel - Entrepreneur

Areas to Dissect & Explore

• What is the purpose of the business/product/service?

• Do you see opportunities for future expansion? If, so where?

• Who is the target market?

• What pain points will your product/service solve?

• Where will initial funding come from? What resources are currently available and which will you need?

• What are the problems that could – and will – arise? How will you solve these problems?

• What will make your business successful in the long run?

Business Plan Framework

“Good business planning is 9 parts execution for every 1 part strategy.”

Tim Berry

Keep your proposal to 1 page.

Seriously, just 1 page.

Stop after 1 page. Don’t write anymore.

Put the pen down.

Don’t be George RR Martin. Be concise.

The Mini Pitch

Once you have the proposal drafted, pitch the idea to a trusted colleague first. You want them to POKE HOLES in your business plan and proposal. You two aren’t trying to solve every problem of the business at this point, just answering is there really a need, can we do this, etc.

The Mini Pitch

Sample Business Plan

Table of Contents

I. Executive Summary

II. General Company Description

III. Products and Services

IV. Marketing Plan & Sales

V. Pricing

VI. Management and Organization

VII.Expenses

VIII.Appendix

I. Executive Summary Summarizes the entire proposal so readers can rapidly become acquainted with a large body of material without reading it all.

- Problem/proposal - Background information - Brief market Analysis - Conclusion CEOs are busy, they may only read this one page, the others could just supplement. That doesn’t mean you don’t fill out the other pages.

II. General Company Description

Be able to define these - Mission Company Goals and Objectives Business Philosophy Customer Market Industry Core Strengths

III. Products and Services

What do they look like? What is the structure? Competitive advantages/disadvantages?

IV. Marketing Plan & Sales

Sales Forecast/Pricing Brand building strategy with: - Product - Customers - Competition

VI. Management and Organization

VII. Expenses

How much is this going to cost? - Wages? - Commissions? - Technology? - Website? - Marketing? - Rent/Utilities?