The Business Plan

The Biz plan is a written document prepared by the entrepreneur that describes all the relevant internal and external elements involved in starting a new venture

The Biz plan includes various functional plans like;MarketingFinanceManufacturingHuman resource

It is a game plan or a road map and should answer the following questions ..Where am I nowWhere am I goingHow will I get there?

Potential investorsSuppliersCustomersGovernment

YOU of course But in consultation with LawyersAccountantsConsultantsEngineers etc. etc.

Introductory PageName, address of company.The name and contact information of the entrepreneur.Company and business description briefly.Amount of financing needed.Can include a package deal offered by the entrepreneur such as stock options.Statement of confidentiality.

Executive SummaryThis will be of 3-4 pages in length and should stimulate the interest of the potential investor.It includes The business concept or model.How this business concept is unique?Who are the individuals starting this business. Their prior experience and expertise?How will they make money and how much?The exit strategy.

The industry analysisThis is an assessment of external uncontrollable variables that may impact the business plan.Key pointsEconomy (inflation GDP etc)Culture (baluchistan)Technology (cell phones)Legal concerns (Iso certificatons)

Description of VentureProvides complete overview of the product(s), services and operations of new venture.Mission statementReasons for the ventureWhy will you be successful in the venture?What development work has been completed to date?What are your products/services?Where is your office?Is the building new/old? Renovations needed? And costs involved.Building leased or owned. Terms of lease.Why this premises?Office equipment needed? Purchased or leased?Experience that will help you in successful implementation of the business.

Production PlanDetails how product/services will be manufactured or provided.Manufacturing supervisorSubcontractors if anyBasis of selection of the aboveCosts of subcontractLayout of the production processRaw materials and Equipment neededSuppliersTotal costsFuture capital requirements.

Organizational planDescribes form of ownership and lines of authority and responsibility of members.Form of organization? Partnership/incorporated etc.Share/stake distributionBoard membersCheck signing authorityManagement team-roles/responsibilitiesSalaries/bonuses etc.

Assessment of Risk

This part identifies potential risks/hazards and alternative strategies to meet business plan goals and objectives.

Marketing PlanDescribes market conditions and strategy related to how products and services will be distributed, priced and promoted. Financial PlanProjections of key financial data that determine economic feasibility and necessary financial investment commitments

Measuring parameters.

Inventory controlProduction controlQuality controlSales controlDisbursement controlCash/liquidity controlBenchmarks/milestones

Unreasonable goalsGoals not measuredLack of total Commitment.No experienceNo sense of potential threats and weaknessesCustomer needs not established