Basic Business Plan for Feasibility Analysis or anyone considering setting up a new business
Six critical elements to pass before you start your business or project
A business plan is 75% research and 25% format
The Business Plan Purpose is to clarify
• A document setting out what you aim to do (setting targets)
· Reduce the risk of failure
• Possibly assisting with the raising of business finance
• Make your mistakes on paper!
· Why write a Business Plan, to discover?
· Return expected and why?
· Resources required to win.
· What are the Risks, Challenges and Barriers associated with the project or business?
Basics of the Business Plan are to provide
· A Strategic Guide for you.
· A plan for Lenders / Grants now.
· Investors in the future.
The Business Plan captures, that is to say
• Where it has come from, where it is now, and where going in the future?
• How it intends to get there, how much money is needed?
• What makes it likely to succeed and the threats or weaknesses need to be overcome?
1 / The Executive Summary is the first thing a reader will see but it the last that you will write when all other elements of the business plan have been completed. The quality of your executive summary will determine the opinion of any reader of it.
A good Executive Summary includes four key elements about your business:
1. Describe your business, product, or services.
2. Current market positioning & targeting.
3. Financial assumptions, outlook & funding requirements.
4. Past achievements & SMART goals for the future.
However, the most important function that a great Executive Summary serves is communicating to the reader why they should read the rest of the business plan, and why you want them to.
2 / Business Overview for example
Above all, within this section, you should state your Vision, Mission, and Values.
In this section of the business plan, you should explain precisely:
• Why your business exists and what do you do?
• How do you do what you do?
• Who are you, customers?
• When do you sell and?
• Where do you sell?
• What are the compelling reasons why the business will succeed in an extremely competitive environment?
• What are the market dynamics that provide a business opportunity?
• Outline how you compare to others in the marketplace and the goods or services they provide.
• Explain how you will compete and on what terms can you excel.
• Outline the good and services you will provide
• Profile your target market and any current customers
• What is the structure of your business management?
• Who are your suppliers and professional advisors?
• Do you have a WOW factor?
Define your value proposition in terms of benefits, features, and advantages over the competition?
3 / Sales & Marketing Strategy for example
This requires a deep understanding of your marketplace
• How your business positions itself and how you will compete with existing players.
• For your target market specify – its size, existing and emerging trends, and your projected market share.
• Assess your market opportunity – how will you attract your target market and why Use Michael Porter’s Five Forces
• Use a SWOT Analysis
• What is your Pricing, Promotion, Product, and Place strategy?
• Are you a B2B or B2C company?
• Provide customer profiles to describe exactly who you are going to target.
• Research your Key Competitors direct and indirectly.
• Explain how your business is different from your competitors
• Give details of your Marketing Plan & Budget you will use to promote your business.
• Provide an overview of your brand and your communication elements that support it.
• Pricing and explain your pricing strategy.
4 / Operations & Management, that is to say
Give an overview of the people and processes of your operations and what competitive advantages do you have so that you can successfully realize the business opportunity.
Focus on two main points:
A. Operational Plan –all day-to-day operations of the business. You should include, Production or Service Delivery; Quality Control; Inventory; Suppliers; Credit policies; Legal environment; and location.
B. Structure – Provide a list of the people involved experience and their roles in the business use an organization chart. Also, include any third-party advisors and non-executive directors.
5 / Financial Plan
Be realistic but stretch your projections, budgets and goals that are unique to each business. Explain your assumptions on which you based your forecasts. Every good Financial Plan will include:
Ø Profit & Loss Projections
Ø Cash Flow Statement & Forecast
Ø Breakeven Analysis – a cornerstone of your business.
Ø Capital Requirements.
6 / In conclusion you need a supporting appendix of materials.
Keep Safe
Thomas Cullen Founder and C.E.O, Ireland and U.K.
"Keeping Business-Focused"
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Copyright July 2020