Elements
included in a business plan always vary based on the company and
environment. Typical elements that may be included based on plan type
and overall budget:
Executive
Summary
A key summary of the company and plan purpose, expertise and
vision that provides background and incentive for the audience to
continue.
Company
History and Current Status
Length of time in business; changes in products, services or
management since inception; current facilities and lease arrangements;
current owner- ship structure and sources of funds.
Products
and Services
Flagship product or service and % of total revenue provided; life
cycle analysis of current offerings; one-time vs. recurring sales;
opportunities for upselling and cross-selling; benefits statement.
Target
Customer and Industry Analysis
Target direct customer base, and their customer base; dependence
on single or few customers; size of customer base and estimated
growth; geographic dispersion; industry growth rates and maturity.
Competition
and Differentiation
Current direct competition: number of competitors, dominance of
single competitor, geographic dispersion; competition from other
industries; barriers to entry; analysis of competition
strengths/weaknesses; your differentiation (first to market, price,
quality, management, proprietary technology, specialized knowledge,
manufacturing efficiencies, other)
Sales
and Marketing Plan
Direct or indirect sales; channel partners; strategic alliances
and other partnerships; used of Internet and trading exchanges;
marketing and advertising methods; pricing strategy
Operations
Plan
Use of outsourcing for manufacturing and distribution; current
operating facilities and distribution network; third party design or
development; key vendor capabilities; staffing level projections
Financial
Plan
Projected cash flow, balance sheet and income statements; ratio
analysis; breakeven analysis; comparison to direct competition;
funding requests and use of proceeds; justification for
financial/growth assumptions
Management Analysis
Stability; years of relevant industry experience; education;
planned organization; inside vs. outside directors; previous work
history at 'high visibility' companies
Key
Risk and Opportunity Analysis
Dependence on single manager, customer, vendor, product or
technology; market share assumptions and fallback positions;
likelihood of key changes in competitors' positions; impact of product
delays
Exit
Strategy
Plan for IPO or merger/acquisition; management buyout; secondary
funding plans; termination/business failure terms
Other
Strategic Factors
Trademarks, service marks, patents and certifications (ISO 9000,
etc.); impact analysis of changes in technology and trade programs;
impact of government conformance regulations
SWOT
Analysis
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Business Plan Development
