Business Plan Page 218 Analysis of environmental factors

Business Plan Page 218

Analysis of environmental factors P Political E E Economic Environmental Business S Social, cultural L Legislative (institutional) T Technological PESTLE

Business Plan Layout 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Cover Page Index Executive summary Description of the business SWOT analysis Marketing Plan Operations plan Management Plan Financial Plan Additional Documents

1. Cover Page � Name of the entrepreneur � Name of the business � Business logo � Address of business � Contact details of business

2. Index � Allows reader to find information in the document � List of all the sections of the business plan � Page numbers for each section INDEX Executive summary 1 Description of the Business 2 SWOT analysis 3 Marketing Plan 4 Operations Plan 6 Management Plan 8 Financial Plan 9 Additional Documents 10 Contingency plan 10 Diagrams 11 Schedule 12 Legal Registration 13 CV of Management 14

3. Executive Summary � Summary of the entire business plan � Uniqueness of the business � Market information � Summary of financial projections � Info about management and owners � Most important aspect � Should be written last � Narrative format � Simple and to the point

4. Description of Business � Describes the product or service � Unique features � Discusses ◦ Vision ◦ Mission ◦ Goals � Outline legal requirements

Vision, Mission, Goals and Objectives � Vision Statement ◦ Long-term goal of how you see your business in the future ◦ How you want it to grow ◦ Often addresses profit, growth, purpose or stability � Mission Statement ◦ Addresses how you hope to achieve your vision ◦ Addresses what your business actually does ◦ How you hope to do it

Vision, Mission, Goals and Objectives Cont. . � Goals and Objective ◦ Long-term objective is to provide direction for the company ◦ Specific and measurable ◦ Short-term objectives are more specific ◦ Achieving short-term goals helps reach long term goals

5. SWOT Analysis � Identifies strengths and weaknesses of the business � List opportunities and threats

6. Marketing Plan � Description of the market analysis ◦ Target market, customers, competition � Explains the marketing mix � Marketing strategy

Marketing Mix

The 4 Ps Place Price • Production costs • Marketing of competitors products/services • Budgets of consumers • Profit percentage Promotion • Advertising • Special orders • Trial products • Free gifts • Direct mailing • Online marketing • Social media • PR and brand awareness 4 Ps • How the product is distributed • Mail order • Internet • Direct sales • Wholesale • Multi-channel • Peer-to-peer Product • Design • Value and cost • Branding • Usefulness • Convenience • Technology and production

7. Operations plan � Where the business will be located � How manufacturing process will take place � Provides details of equipment and suppliers

8. Management Plan � Discusses ◦ The hierarchy of employees ◦ Roles of employees

� Cash flow ◦ Ensure money is coming in so that expenses can be paid � Balance Sheet ◦ Summarises how much your business is worth. It indicates you assets an liabilities � Record Keeping ◦ Usually electronically ◦ Businesses need to indicate how they will process and store admin and finance records

9. Financial Plan � Detailed plan of entrepreneur’s financial contribution � Funding requirements � Projected budgets � Cash flow statements � For three year period

� Profit/Loss � Breakeven � Assets = Revenue – Expenses point = sales income = expenses = liabilities + owners equity

Additional Documents � Such as… � Contingency plan � diagrams of machinery or product process layout � Time schedule � Legal registration document � Curriculum Vitae (CV) of Management