logo image

Chapter. 4: The Business Plan

Why Make a Business Plan?
Good Planning Improves Results
Increase Probability of Successful Financing
Helps Prevent MistakesI wish we hadn’t !
Who is the Plan for?
Yourself… essentials may be enough.

Partners… more extensive

Investors… most extensive

The More $$$ the More EXTENSIVE

Who is the Plan for?
Yourself… essentials may be enough.

Marketing Strategy
Competitor Analysis
Financial Projections

Who is the Plan for?
“Partners”… more extensive … add the

Vision & Mission
Business & Industry Profile
Plan of Operations
Partner Buy In T&C

Who is the Plan for?
Investors… most extensive… add the…

…. Full Business Plan….

The More $$$ the More EXTENSIVE

A Plan Must Pass Three Tests
The Reality Test:

The Competitive Test:

The Value Test:

Define Reality Test…?

The Reality Test – proving that:
A market really does exist for your product or service.

You can actually build or provide it for the cost estimates in the plan.

Next… Define the Competitive Test

The Competitive Test – evaluates:
A company’s position relative to its competitors.

Management’s ability to create a company that will gain an edge over its rivals.

Next define the Value Test

The Value Test – proving that:
A venture offers investors or lenders an attractive rate of return or a high probability of repayment.
What are the sub-parts of the Company Section of a Business Plan?
Company
Strategy
Marketing
Implementation
Projections
Financing
What is the difference between Features & Benefits?
Company
Title Page
Table of Contents
Exec Summary
Vision & Missions
History
Industry Profile
Products & Services
Features vs. Benefits
Feature – a descriptive fact about a product or service: “an ergonomically designed, more comfortable handle”
Features vs. Benefits
Benefit – what a customer gains from the product or service feature: “fewer problems with carpal tunnel syndrome and increased productivity”
The Business Plan
Strategy
Goals
Objectives
Business Strategy
The Business Plan
Marketing
Marketing Strategy
Marketing Research
Customer Research
Competitors Analysis
The Business Plan
Implementation
Management Team
Plan of Operations
The Business Plan
Projections
Assumptions
Projections
Summary & Cash Flow
Income Sources
COG
Expenses
Payroll Detail
Proposed Financing
Loan Details if applicable

Investor Details if applicable

Capital
– Enough? and Balance of Debt vs Equity
Capacity
Cash Flow
Collateral
Liquid or Fixed Assets
Character
Creditor History
Conditions
Terms of Loan
Tips on Preparing a Business Plan
Make sure your plan has an attractive cover. (First impressions are crucial.)
Rid your plan of all spelling and grammatical errors.
Make your plan visually appealing.
Include a table of contents to allow readers to navigate your plan easily.
Make it interesting.
Investors
Family: The first place you go… need to get some buy in.
Investors
Friends: The second place… should be interested.
Investors
Network: Hopefully it is full of people with money.
Investors
Suppliers: If an extension of an existing business this is a great source of financing.
Investors
Money People: Angels, Mezzanine, Growth Stage, M&A

Need essay sample on "Chapter. 4: The Business Plan"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy