Reading: How to Start a Business part 2 - Write Out A Business Plan (Slides)

How to Start a Business
Part Two

Write out a business plan

The business plan

Don’t worry about perfection

First draft in two hours

Show the first draft to others

Write the second draft with input from others

Put business plan into practice

The parts of a business plan:

Executive summary

Business description

Business environment analysis

Industry analysis

Competitive analysis

Market analysis

Marketing plan

Operations plan

Team and management plan

Financial projections

Executive summary

1. Mission Statement: This explains to the reader why your company exists. The activities of your company should be guided by its mission statement.

2. Company Information: This is a brief statement giving a historical perspective of your company. It should include the date of formation, locations, company founders and the number of current employees.

3. Highlights: This is an opportunity to tell the reader about profit or market milestones achieved by the company since its inception.

4. Products and Services: Briefly mention and describe the products or services offered by the company.

5. Financial Information: This section is particularly important for companies seeking financing and should include mention of bank references and investors.

6. Future Projections: Explain the direction in which ownership and management plan to take the business.

Business description

What is your product or service?

Why are you starting this business?

Who owns it and how is it run?

Who are the potential customers and how does the business intend to reach them?

How is it going to make money?

Business environment analysis

Why is your business needed?

Who are the potential competitors to your business and why will you be able to compete well?

What about the business environment will make it a challenge to your business and what will your business do to overcome these challenges?

Marketing plan

Product

Price

Place

Promotion

Customer service

Operations plan

Positions and job descriptions

Organizational chart

Management environment

Financials

Assets

Debt

Money flow

Accounting

Banking

Credit