Writing a Winning Business Plan

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Writing a WinningBusiness Plan
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A business plan is a strategy for creating,
launching and managing a new venture. It answers
the questions of What, Why, Who, When and Where.
Most important, it answers the question of How.
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Success begins with a great opportunity. A
viable opportunity exists when

• You have intimate knowledge of an industry
  (products, services, competitors, customers
  needs, missing pieces)
• You find a way to meet a need that is not being
  met, or a way to meet a need better than other
  companies are meeting it
• You can execute a viable business in the industry
  (robust market, healthy margins, early cash flow,
  high profit potential, a strong team, customers
  ready to buy)

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Components of the Plan

• Cover Page
• Table of Contents
• Executive Summary
• Business Description
• Industry Analysis
• Management Plan
• Marketing Plan
• Financial Plan
• Implementation Plan

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Cover Page

• Name of new business
• Name of founders
• Contact information
• Date of plan

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Table of Contents

• Includes major sections and page numbers
• Includes sub-sections and page numbers

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Executive Summary

• 3 to 5 pages in length
• Brief description of business and summary of
  competitive advantage
• Brief overview of management plan
• Brief overview of marketing plan
• Brief overview of financial plan including sales
  and profit projections

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Business Description

• Mission, vision and values
• Products and/or services
• Unique competitive advantage
• Legal structure and ownership

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Industry Analysis

• Definition and health of industry
• Barriers to entry and exit
• Power of buyers and suppliers
• Complementary/substitute products
• Analysis of major competitors
• Current trends relevant to business
• Impact of technology and innovation
• Key factors for industry success

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Management Plan

• Members of the management team
• Structure of organization and roles
• Acquisition/sourcing of materials
• Production/assembly of products
• Packaging and distribution
• Customer service strategy

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Marketing Plan

• Market segments/customer profiles
• Target customers and/or companies
• Channels for product distribution
• Sales and marketing strategies
• Pricing and market positioning

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Financial Plan

• Financing the venture
• Projected financial statements
• Cash flow analysis
• Break-even analysis

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Financial Planning

• Confirms there is viable economic model for the
  business
• Uncovers risks that will need to be managed
• Builds investor confidence (easier to finance and
  lower financing costs)
• Improves negotiation position of the entrepreneur

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Financial Summary

• Financing required amount raised and future
  requirements
• Timing of financing (stages and milestones)
• Projection of financials over 3-5 year period (by
  month or quarter year 1)
• Past financial history if any
• ROI expectations

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Implementation Plan

• Major objectives for the first year of operation
• Specific action plans for achieving each objective

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Sample business plans can be viewed on the
following websiteswww. bplans.comwww.businessp
lans.org