New Writing B-Plan
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Transcript of New Writing B-Plan
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Biz Acumen
VENTURE(the age of entrepreneurship)
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Co mp o nents of a g ood B-PlanExecutive Summary
The Concept
Market Analysis
Manufacturing and Operational PlansManagement and Ownership
The Economics Of Plan
Marketing Strategy
The Expansion Phase
Risk Analysis
Finance and Funding
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Executive Summary
Outline of the business concept
Target market and the projections
Strategy, economics, profitability and potential returns
The team and the offering
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Contents
The Mission Statement - The mission statement briefly explains the thrustof your business. It should be as direct and focused as possible, and itshould leave the reader with a clear picture of what your business is allabout.
Date business began
Names of founders and the functions they perform
Number of employees
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Location of business and any branches or subsidiaries
Description of plant or facilities
Products manufactured/services rendered
Banking relationships and information regarding current investors
Summary of company growth including financial or markethighlights
Summary of management's future plans - With the exception of the mission statement, all of the information in the ExecutiveSummary should be highlighted in a brief, even bulleted, fashion.
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T ipsThe executive summary should be the last section you write. After you'veworked out all the details of your plan, you'll be in a better position tosummarize it.
To assist the reader in locating specific sections in your business plan,include a table of contents directly following the executive summary. Makesure that the content titles are very broad; in other words, avoid detaileddescriptions in your table of contents.
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Company Summa
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The
ConceptThe nature of the industry
Concept of the company
This includes :Company descriptionLegal DescriptionHistory of The CompanyCurrent Status and future goals
Services provided/product produced
The strategy for entry and expansion
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Try t
oanswer
foll
owing
Does Your Business Have A HISTORY In The Business?
What's The Legal Form Of Business Ownership?
Where Can Your Business Be Found And What Kind Of Facilities Do YouHave?
Do You Have An Internet Web Site?
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Avo
id
able mistakesIncluding far too much detailed information about your business
Providing information that an investor would consider your "personalopinion"
Appearing as though you have no business history or business purpose
Leaving out important business and legal particulars
Writing the section in an unorganized or confusing manner
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Market Analysisindustry Description and Outlook
target market information
market test results
lead times
an evaluation of your competition
regulatory restrictions
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O rganizati o n & M anagement
Organizational Structure
Ownership Information which includes names of owners ,percentageownership, extent of involvement with the company, forms of ownership
Key managerial posts and their compensation
Board of Directors' Qualifications
Shareholders - their rights and restrictions
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Ec
on
omics
O f Plan
Gross and operating margins
Expected profit and sustenance
Operating costs
Expected Break even point and time to reach a positive cash flow
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Imp o rtant termsFi x e d c o sts: These are costs that are the same regardless of how many items you sell. Allstart-up costs, such as rent, insurance and computers, are considered fixed costs since youhave to make these outlays before you sell your first item.
V ariable c o sts: These are recurring costs that you absorb with each unit you sell.
BR E AK E V EN AN ALYS IS
Helps in determining how much sales volume your business needs to start making a profit
BREAK EVEN POINT(IN UNITS)
Breakeven Point = Fixed Costs/(Unit Selling Price - Variable Costs)
Above the breakeven point, every additional unit sold increases profit by the amount of theunit contribution margin, which is defined as the amount each unit contributes to coveringfixed costs and increasing profits.
Unit Contribution Margin = Sales Price - Variable Costs
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M E TH OD 1:
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M et h od 2:
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
quarter 1 q uarter 2 q uarter 3 q uarter 4
total revenue
fixed cost
variable cost
total cost
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BALA N C E S H EE T
The Balance Sheet is the financial statement that reports theassets, liabilities and net worth of a company at a specific point in time.
It must include:
Current assets
Noncurrent assets
Current liabilities
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M arketing & Sales Strategies
Marketing strategy outline
Pricing, sales tactics and publicity
Distribution Strategy
Customer satisfaction
sales force strategy and sales activities
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Expansi
on P
hase
Product improvisation
The difficulties and risks involved
Costs incurred
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Risk AnalysisCritical risks and problems
Assumptions
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Exit Strategy
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Finance an d Fun d ing
Desired financing
Use of funds
Investors and Returns expected
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QU ERIES