Building Your Enterprise: How to Create an Effective Business Plan
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The document outlines the essential components for creating an effective business plan, including an executive summary, market analysis, company description, organization and management, marketing and sales, funding request, and financial projections. Each section is thoroughly described to guide entrepreneurs in structuring their plans to attract investment and achieve business success. Key elements such as target market analysis, competitive advantages, and financial forecasting are emphasized for a comprehensive understanding of the business's potential.
Building Your Enterprise: How to Create an Effective Business Plan
- 1. Developing Your Enterprise How To Create An Effective Business Plan
- 2. Explore the eight major components of an effective business plan AGENDA • Executive Summary • Market Analysis • Company Description • Organization and Management • Marketing and Sales • Funding Request • Financial Projections
- 3. • Recapitulate the major elements of the plan • 1 or 2 paragraphs • Provides enough insight in order to generate an overall idea of the business EXECUTIVE SUMMARY • Explores the highlights of the business – The product and or service – Differentiation – Target market – Financial projections » NPV and Breakeven
- 4. • Industry description • Outlook for the industry (5 years) • Define the target market – Demographic, psychographic, geographic, and behavioral • Size and characteristics of the target market • Projected portion of market share • Pricing and projected profit margins • SWOT MARKET ANALYSIS
- 5. • Company’s Value Proposition – What needs / wants your product and or service sates – How those needs / wants are met – Strategic approach • Low cost, differentiation, niche – Competitive advantage • Core competencies and distinct capabilities COMPANY DESCRIPTION
- 6. • Organizational Structure – Functional, departmental, matrix, etc – Tall vs. flat – Explanation of the structure • Ownership profile – Based on percentages • Management bios • Qualifications of the board members ORGANIZATION AND MANAGEMENT
- 7. • Explore the 4 Ps of marketing – Product, place, promotion, and pricing • Marketing strategy – Penetration, product development, market development, diversification • Description of the Supply Chain • Integrated Marketing Communication – How are you going to communicate to your potential customers MARKETING AND SALES
- 8. • Details of the product and or service – Advantages and disadvantages • Discuss the Product Life Cycle (PLC) – Where the product falls and how it will be extended • Intellectual property / patents • R&D activities • How does the firm innovate SERVICE AND OR PRODUCT LINE
- 9. • Current funding request • Future funding request (1-5 years) • Current capital / equity position • How the funds will be used to enhance and grow the business • How the business plans to repay debt FUNDING REQUEST
- 10. • Historic financials of the firm • Prospective financials – Short term (0-1) year – Mid term (1-5) years – Long term (5-10) years • NPV analysis • Breakeven analysis • ROA and ROE projections FINANCIAL PROJECTIONS
- 12. QUESTIONS?