Writing a Business Plan Engineering Design and Development

At the conclusion of your research justifying your project you will be asked to prepare; 1) A Project Proposal or 2) A Business Plan

An Engineering Design Process - Research 1. Define and Justify a Problem • Brainstorm possible project problems. • Research and select a valid problem. • Become an expert on the problem. • Justify the problem through research. • Academic • Market • Write a problem statement. • Document and analyze prior solutions. • Identify design requirements. • Create a Project Proposal or Business Plan

Writing a Business Plan What is a Business Plan A formal statement that summarizes the goals of a company and how the company plans to achieve those goals. If you don’t know where you are going, how will you know when you are lost? - Rhonda Abrams, The Successful Business Plan

Writing a Business Plan Why Write a Business Plan • Required or recommended by bank, investor, attorney, or accountant – Increases understanding of industry and market – Provides a resume for your business – Guides control of your business • Marketing • Operations • Finances • Long-term development – Provides a competitive edge – Provides a basis for measuring progress

Writing a Business Plan Components of a Business Plan • • Executive Summary The Industry Market Analysis Competitive Analysis • • Marketing Plan Management Plan Operating Plan Financial Plan Although business plans may take different forms, most business plans will include these sections. At this point in the design process, we will discuss the first four sections listed: the executive summary, the industry, market analysis, and competitive analysis.

Writing a Business Plan Executive Summary • A clear, concise, engaging description of your planned business • Should explain that – The business concept makes sense – A market exists – The business has been thoroughly planned – Significant competitive advantages exist – Investors have an excellent opportunity to make money • Written after the rest of business plan is complete

Writing a Business Plan The Industry • An overview of the industry in which your product will compete • Should include – Description of your industry – Trends in the industry – Where your business fits in the industry

Writing a Business Plan Market Analysis • Shows an understanding of your potential customers • Includes – Description of the target market – Description of the needs of the target market – Available market size – Estimate of market share for your product

Writing a Business Plan Competitive Analysis • Shows an understanding of the competition • Includes – Major competitors – How you compare – Potential future competitors – Barriers to entry into the market – Competitive Product Analysis • Detailed description of competitive products and their strengths and weaknesses • How you gain a competitive advantage

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