商業(yè)計(jì)劃書編寫技巧（全英文）

HowtoWriteASuccessfulBusinessPlanforChineseEnterprises

DavidWang,RobertRekucandWendellMartin

TableofContent

SECTION1PURPOSEOFABUSINESSPLAN3

SECTION2BUSINESSPLANORERVIEW4

.EXECUTIVESUMMARY&INVESTMENTOPPORTUNITY7

.INTRODUCTION8

.PRODUCTSANDPRODUCTION8

.MQRKETANALYSIS8

.MARIETINGSTRATEGY10

.RISKFACTORS11

.C0MPANYPROFILEANDMANAGEVENT11

FINANCIINGPLAN14

SECTION3SECTION4SECTIONSEXHIBITSEXHIBITSEXHIBITSEXHIBITSSECTION6

.ACTIONPLAN11

14

19

19

19

FINANCIALSATTACHMENT1PERSONNEL2:PRODUCTS

3:CLIENTS/LEADS19

4:G0VERNMENTREGULATION19

HOWTOSTARTTOWRITEYOURPLAN? 20

STEP1.CREQTINGTHEPLAN20

STEP2,DATASOURCES20

STEP3.ORGANIZINGDATACOLLECTION21

STEP4.REALITYCHECKS.21

STEP5.MARKETINGPLAN21

STEP6.KEEPINGTOTHEPLAN22

HowtoWriteASuccessfulBusinessPlanforChineseEnterprises

Mostabstractofbusinessplansdistributedinthe"ZhaoShan"conferencesinHongKongandU.S.theauthorsparticipated,arewrittenformtheviewpointofthecommonconstituencyofbusinessplan-theproducer.Theydescribetheunderlyingtechnologyorcreativitythemostimportantconstituenciesthatgivetheventureitsfinancialviability-themarket,financialprojectionandtheinvestor.

Ifthebusinessplandidnotdeterminewhichoftheproposedservicesorproductthecompany,spotentialclientsreallyneededandwhichwouldbemostprofitable,byneglectingtoexaminetheseissuesclosely,theyignoredthepossibilitythatthemarketplacemightwantsomeservicesandproductnotamongtheareaslisted.

Moreover,mostofChineseplansfailedtoindicatethepriceofnewsharesorthepercentageavailabletoinvestors.Dealingwiththeinvestor'sperspectivewasimportantbecause-foranewventure,atleast-backersseekareturnof40%to60%ontheircapital,compoundedannually.Theexpectedsalesandprofitgrowthratesof20%couldn'tprovidethenecessaryreturnunlessthefoundergaveupasubstantialshareofthecompany.

Infact,theexecutiveshadonlyconsideredtheirownperspective-includingthenew

Atthemoredesirableextremeisaventurethathasanacceptedproductinaprovenmarketandacompetentandfullystaffedmanagementteam.Thisbusinessismostlikelytowininvestmentfundsatthelowestcost.

C:Thepriceofthefinancing:

Onceinvestorsunderstandacompanyqualitatively,theycanbegintodosomequantitativeanalysis.Onecustomarywayistocalculatethecompany'svalueonthebasisoftheresultexpectedinthefifthyearfollowinginvestment.Becauseriskandrewardarecloselyrelated,investorsbelievecompanieswithfullydevelopedproductsandprovenmanagementteamsshouldyieldbetween35%and40%ontheirinvestment,whilethosewithincompleteproductsandmanagementteamsareexpectedtobringm60%annualcompoundedreturns.

Investorscalculatethepotentialworthofacompanyafterfiveyearstodeterminewhatpercentagetheymustowntorealizetheirreturn.Takethehypotheticalcaseofawell-developedcompanyexpectedtoyield35%annually.Investorswouldwanttoearn4,5timestheiroriginalinvestment,beforeinflation,overafive-yearperiod,

Afterallowingfortheprojectiondiscountfactor,investorsmaypostulatethatacompanywillhave$20millionannualrevenuesafterfiveyearsandanetprofitof$1.5million.Basedonaconventionalmultipleforacquisitionsoftentimesearnings,thecompanywouldbeworth$15millioninfiveyears.

Ifthecompanywants$1millionoffinancingitshouldgrowto$4.5millionafterfiveyearstosatisfyinvestors.Torealizethatreturnfromacompanyworth$15million,theinvestorswouldneedtoownabitlessthatone-third,Ifinflationisexpectedtoaverage7,5%ayearduringthefiveyearperiod,however,investorswouldlookforavalueof$6.46millionasareasonablereturnoverfiveyears,or43%ofthecompany.

Foralessmatureventure-formwhichinvestorswouldbeseeking60%annually,netofinflation-a$1millioninvestmentwouldhavetobringincloseto$15millioninfiveyears,withinflationfiguredat7.5%annually.Butfewbusinessescanmakeaconvincingcasefbrsucharichreturniftheydon'talreadyhaveaproductinthehandsofsomerepresentativecustomers.

Thefinalpercentageofthecompanyacquiredbytheinvestorsis,ofcourse,subjecttosomenegotiation,dependingonprojectedearningsandexpectedinflation.

Thefinalpercentageofthecompanyacquiredbytheinvestorsis,ofcourse,subjecttosomenegotiation,dependingonprojectedearningsandexpectedinflation.

Section4Financials"LatestBalanceSheetandCashFlow

"SourcesoffundstodateandPrincipalStockholders

Projections(bymonth):

-salesandcollections

_R&D,PPE,productionsetupcosts

-variableproductioncosts

-fixedcosts,sinkingfunds(warranties,aftersalesetc)

-disbursements

-statementofoperations

-cashflowprojections,endingbankbalances

Investmenthorizonprojections

A:THEFINANCIALDATA

PlanandControlarethekeyingredientsofanysuccessfulbusiness.Planestablisheswhatyourbusinesswilldo.Controlmeasurestheaccomplishmentofplanedgoals.

Theheartoftheoperationisintheaccountingsystem.Itisabsolutelyessentialthatyouhaveacompetentaccountantsetupasystemtogiveyouadequateaccountingrecords.Ifyoucan'taffordthis,youaresimplytooundercapitalizedtobeinbusinessifyoudon'tunderstandtheneedfbraccountingrecords'youdon'thaveenoughmanagementexperiencetoeffectivelymanageyourbusiness.

Controlisessential-Ifyoudon'tcontrolyourbusiness,itwillcontrolyou.

Theoverridingplanofyourbusinessistofindoutwhatyourmarketswant,satisfythesewants,andmateaprofitwhiledoingso.Theimplementationofyourplandependsonplanningandusingyourplanasameans,ofcontrollingyourbusiness.Theimplementationofyourplandependsonplanningandusingyourplanasameans,ofcontrollingyourbusiness.Thefirststeptowardsmanagingyourbusinessforprofitsistoestablishabookkeepingsystemwhichprovidesyouwiththerawdataforthethreedocuments:balancesheet,incomestatementandcashflowstatement.

Ultimately,youraccountingsystemshouldbeaworkingmodelofyourbusiness.Abusinessmanagerhastwoconcurrentobjectives[whichmayconflict]:tomakeaprofitandtopaybillsastheycomedue.Theobjectivesarereflectedinthetwomostimportantfinancialstatements,theincomestatementandthecashflowprojection.Theincomestatement(alsocalledtheprofitandLossstatement)isdesignedtoshowhowwellthecompany'soperationsarebeingperformedovertimebysubtractingtheexpensesfromsales(profitorloss).

Thecashstatementisdesignedtoshowhowwellthecompanyismanagingitscash(liquidity)bysubtractingdisbursements(actualcashoutlays)fromcashreceived.

Thebalancebetweenprofitabilityandliquiditycanbehardtomaintain.Fastgrowth(withhighprofits)candepletecash,causingilliquidity.Companieshave'beenknowtofailevenwhentheyareprofitable.Theroleofprojectedincomeandcashflowstatementsistohelpyouspotthesekindsofsevereproblemsintimetodosomethingtoforestallthem-suchasraisenewcapitalORarrangefortherightkindoffinancing.

Thebalancesheetrecordswhatthecashposition(liquidity)ofthebusinessisandwhattheowners'equityisatagivenpointintime.Theseare:directlyaffectedbythecashflowandincomestatementwhichthemselvesaretherecordsofhowthebusinessoperatesovertime.

Ifthereisonlyasinglestatementthatisalwaysavailable,letitbeyourcashflow.Abusinessthatcan'tpaytobillscan'tstayinbusinessfbrlong,eventhoughthebusinessmaybeoperatingataprofit.

Projectionsareanintegralpanofyourbusinessplanandarecriticaltoaccuratelyevaluatingthefeasibilityofyourdealandtoplanningjusthowlargeaninvestmentisrequiredtogetyourbusinesstoastablelevelofoperation.Yourassumptionsmustbecarefullythoughtoutandexplained.Behonesthereforyourownbenefit:Over-optimismcanacceleratefailure.

CASHFLOWPROJECTION

Thecashflowprojectionisthemostimportantfinancialplanningtoolavailabletoyou.Foraneworgrowingbusinessthecashflowprojectioncanmakethedifferencebetweensuccessorfailure.Foranongoingbusiness,itcanmakethedifferencebetweengrowthandstagnation.

YourCashFlowanalysiswill:

Showhowmuchcashyourbusinesswillneed

Whenitwillbeshouldlookforequity,debt,profit,orassetsales.

Wheretheryoushouldlookforequity,debt,profit,orassetsales.

Wherethecashwillcomeform.

Thecashflowprojectionattemptstobudgetthecashflowneedsofabusinessandshowshowcashwillflowmandoutofabusinessoverastatedperiodoftime.Cashflowsintoabusinessfromsales.

Collectionofreceivables,capitalinjections,etc.,andflowsoutthroughcashpaymentsforexpensesofallkinds.

Thisfinancialtoolemphasizesthepointsinyourcalendarwhenmoneywillbecomingintoandgoingoutofyourbusiness.Theadvantageofknowingwhencashoutlayswillbemadeistheabilitytoplanforthoseoutlaysandnotbeforcedintolastminuteborrowingrequests.Illiquidityisakiller-evenforprofitablebusinesses.Lackofprofitswon'tkillabusiness(non-cashexpensessuchasdepreciationcanmakeyourprofitslooksnegative,whileyourcashflowispositive).Lackofcashtomeetyourtradeandotherpayableswill.

Ifyouprojectyourcashflowfortheneartoimmediatefuture,youmaybeabletofindwaystofinanceyourbusinessorminimizeyourcreditneedstokeepinterestexpensedown.Manyoftheadvantagesofstudyingthecashflowprojectionsstemfromtiming:Moreoptionsareavailabletoyou,atlowercosts,withlesspanic.

Cashisgeneratedprimarilybysales.However,notallsalesarecashsales.Perhapsyourbusinessisallcash-butifyouofferanycredit(chargeaccounts,termpayments,tradecredit)toyourcustomers,youneedtohaveameansofdeterminingwhenthosesaleswillturnintocash-on-hand.Thisisblurredintheincomestatement,outmadeveryclearbythecashflow.Yourbusinessmaybesubjecttoseasonalbills,andagain,acashflowmakestheliquidityproblemsofattendingsuchlarge,occasionalexpensesclear.

Acashflowdealsonlywithactualcashtransactions.Depreciation,anon-cashexpense,doesnotappearonacashflow.Loanpayments(includinginterest),ontheotherhand,dosincetheyrepresentadisbursement.

Afterithasbeendeveloped,useyourcashflowprojectionsasabudget.Ifthecashflowoutlaysforagivenitemincreaseovertheamountallocatedforagivenmonth,youshouldfindoutwhyandtakecorrectiveactionassoonaspossible.Ifthefigureisloweryoushouldalsofindoutwhy.Ifthecashoutlayislowerthanexpected,itisnotnecessarilyagoodsign.Maybeabillwasn'tpaid.Byreviewingthemovementofyourcashpositionyoucanbettercontrolyourbusiness.

Onamorepositivenote,thesavingsmaytipyouofftoanewwayofeconomizing.Discrepanciesbetweenexpectedandactualcashflowsareindicatorsofopportunitiesaswellasproblems.Ifthesalesfiguresdon'tmatchthecashflowprojections,lookforthecause.Maybeprojectionsweretoolow.Maybeyou'veopenedanewmarket,orintroducedanewproductthatcanbepushedevenharder.

ThelevelofdetailyouwishtoprovideisanotherjudgmentcallForexample;youmaywanttobreakdownyourcashflowintoaseriesofcashflows,cashrepresentingoneprofitcenterortheotherbusinessunit.Thiscanbeparticularlyhandyifyouhavemorethanonesourceofrevenue,orifyouareamanufacturerandneedtopreparenumerousbids.Theaccumulatedinformationgainedbyseveralprojectionscanbeveryvaluable.Projectionscanbeveryvaluable.

Cashflowprojectionslendthemselvestocomputerization.SpreadsheetprogramssuchasLotus1-2-3orExcel(among:others)aremadeevenmorevaluablebecauseyoucanticgraphicdisplaystoyourhardnumbers,linktogetherseveraldifferentfinancialstatements,orplay“what-ifscenarioswithmuchgreaterspeedandaccuracythanwaspossiblewhenwewerelimitedtopencils,addingmachines.13-columnaccountingpaperanderasers.

C:THEFINANCINGPROPOSAL

Thefunctionofthefinancingproposalistoshowyourprospectivebackersthatyounotonlyknowwhatyouaredoingbutwillalsomaketheirinvestmentasrisk-freeaspossible.Thebusinessplanyoudevelopoftenneedslittlealterationtobecomeafirstratefinancingproposal.Thedifferencebetweenthetwoisoneofemphasisratherthatdesign.

Whenyouprojectedyourcashflow,youdidtwothingswhichhelpdeterminetherightfinancingmixforyourbusiness.Thedeepestnegativecashflows,bothinnetcashflowandcumulativecashflow,indicatehowmuchmoneyyouneedandwhenyouneeditProjectedcashreceiptsgiveyouaninklingofhowyouwillgeneratemoneytorepaytheloanormakegoodtheinvestment.Ifyoudon'tarrangefbrenoughfinancing(ofwhateverkind),yourdealwillbedead.Ifyouborrowmorethanyoucanservice,yourdealwillalsobedead.Ifyouborrowatthewrongtimeorforthewrongreasons,youaggravatetherisksofbeinginbusiness,whicharealreadyhigh.

Tellyourbankerwhatyouneedthemoneyfor,howitwillberepaid-andwhythedealmakesgoodbusinesssense,Ifyourplanisintendedtohelpyousecureadditionalfunds,it'simportanttodevelopyourplanwellbeforethemoneyisactuallyneeded.Yourabilitytoaccuratelypredicttherequirementfbryourcompany'sgrowthisthekeytoasoundbusinessplanisyourkeytoasuccessfulbusiness.

Section5Attachment

Exhibits1:Personnel

"Resumes,forkeycompanypersonnel

*Keypersonnel'spublicationsifrelevant"Boardstructure,rulesandmembers

Advisoryboardstructure,roleandmembers

Attorney,accountant,otherprofessionalservicesusedbycompany"Existingprincipalsifnotcovered

Exhibits2:Products

"Patents,orapplications,whereapplicable

Propertydeeds

*Copyrights

"Licensingagreements

"Productsamples,blueprints,demos

"Salescollateral:brochures,specsheets,advertisingcopy,catalogues,productreviews,PRarticles

Exhibits3:Clients/Leads

Ifyoudonotyethaveatrackrecordofsalesoronlyashortone,investorswillwantproofthatyourideaisdoable

WithclientsVleads5priorpermission,drawupalistofmajoraccountsandtheirterms,andofmajorleadprospects.

*Appendmajorcontracts/developmentawards,ifgranted.

Exhibits4:GOVERNMENTREGULATION

Pleaselistalllicensesandgovernmentapprovalsthatthecompanyshouldreceiveormaintaininordertoconductitsbusiness.Includecopiesoflicenses,approvals,andothersupportivedocumentationasanexhibit.Highlyregulatedareasareviewedasriskintensivebyinvestorsbecauseoftheunpredictablenatureofpoliticaldecisionmakers.

Discusstheproblemsthatthecompanyhasencounteredoranticipatedencounteringwhileattemptingtocomplywithregulatoryagencies.

Discussproposedchangesinthelaw(federal,stateandmunicipal)thatcouldadverselyaffectthecompany.Whatstepshasmanagementtakentoprotectitselffromunfavorablelegislation?

Section6Howtostarttowriteyourplan?

Step1.CreatingthePlan

*Product/serviceideaandcompany'sobjectives

*Surveymarketandcompetitors,forecast

-Istheopportunityattractive?

-Howlongisthewindowofopportunity?

*Researchtimetomarket,resourceneeds

-Fitwithwindowofopportunity?

-Coststartingcompanyandproductdelivery

-Assesscostsagainstfeasiblepricingpoints

-Researchmarketingchannels,penetration

-Plugfeasiblesalesfiguresandchannelcostsintospreadsheet

-Plugcostsintospreadsheet,assessprofitability

-Iterateprocessuntilknowideaisfeasibleendprofitable,ornotFinalizeactionandfinancialplans

Step2.DataSources

*Businesslibraries

"Competitors'annualreports

*Professionaltradeorganizations/magazines

"Cruisingthetradeshow's

"Peopleinthetrade(e.g.,yourpotentialsuppliersorcustomers,evencompetitors-peopleliketobrag)

*FinancialConsultants,AccountantsandLawyers

*Professionalmarketresearchers

*TheInternet

Step3.OrganizingDataCollection

*Recordtheidea,brainstormonitnow&then

*Createacontactsdatabasefromtheoutset

"Networkwithcontacts

"recordallsourcesofdataforquotationinplanthisadds.Credibilityandfacilitatesduediligence

*Flatterthebestinformationsourcesbyputting

ThemontheAdvisoryBoard-it'susuallyfree!

*Asyougo,recordleadsforpotentialinvestors.

Step4.RealityChecks.

*Discussyourideaswithtrustedfriends

*Continuallyreadtradepublicationstoidentifytrendsandcompetition

"EstablishanAdvisoryBoardASAP

*Assumetheworstforbothsalesandcost

*Everythingtakeslongerthanplanned

"Thingscostsmorethanexpected,includingcapital

Step5.MarketingthePlan

*Investorsspecializebymarket,typeofinvestment

"Targetinvestorswhoknowyourmarketandspecializeinyourtypeofinvestment*Lookforinvestorswhowillbringvaluetoyourcompany(advice,credibility,contacts)

"Practiceyourpresentationsonothers

*Knowthekeyquestionsandtheiranswers

*Keepbackyourmostsensitivedatauntilyouhaveconfidenceinthepotentialinvestor

Theonlywaytotendtoyourneedsistosatisfythoseofthemarketandtheinvestor-unlessyouarewealthyenoughtofurnishyourowncapitaltofinancetheventureandtestoutthepetproductorservice.

Ofcourse,youmustconfrontotherissuesbeforeyoucanconvinceinvestorsthattheenterprisewillsucceed.Forexample,whatproprietaryaspectsaretheretotheproductorservice?Howwillyouprovidequalitycontrol?Haveyoufocusedtheveturetowardtoparticularmarketsegment,orareyoutryingtodotoomuch?Ifthisisansweredinthecontextofthemarketandinvestors,theresultwillbemoreeffectivethanityou,dealwiththemintermsofyourownwishes.

Onceyouaccepttheideathatyoushouldsatisfythemarketandtheinvestors,youfacethechallengeoforganizingyourdataintoaconvincingdocumentsothatyoucansellyourventuretoinvestorsandcustomer.Packagingisimportant!

Businessesdifferinkeymarketing,production,andfinancialissues.Theirplansmustreflectsuchdifferencesandmustemphasizeappropriateareasandde-emphasizeminorissues.Rememberthatinvestorsviewaplanasadistillationoftheobjectivesandcharacterofthebusinessanditsexecutives.Acookie-cutter,fill-in-the-blanksplanor,worseyet,acomputer-generatedpackage,willturnthemoff.

Writeyourbusinessplansbylookingoutwardtoyourkeyconstituenciesratherthanbylookinginwardatwhatsuiteyoubest.Youwillsavevaluabletimeandenergythiswayandimproveyourchancesofwinninginvestorsandcustomers.

Step6.KeepingtothePlan

*Makesureyouhaveenoughresourcesespeciallyyourtime(soyoucanlivetheplan,notfirefight)andworkingcapital

Prioritize:knowthekeymilestones

Buildincontrolsandperformancemeasures

"Budgettimeforregularperformancereviewsandplantweaking/revisions

Takeadvantageofusingexperiencedfinancialadvisors

DearDr.Wang:

Presentedbelowisanamendedoutlineofmyspeechontradefinance

Bestwishes,

Jim

company'sservices,organization,andprojectedresults.Becausetheyhadn!tconvincinglydemonstratedwhypotentialcustomerswouldbuytheservicesofhowinvestorswouldmakeanadequate,return(orwhenandbowtheycouldcashout),theirbusinessplanlockedthecredibilityforraisingtheinvestmentfoundsneeded.

TheprincipalsofCGIhavehadexperienceinbothevaluatingbusinessplanandorganizingandobservingpresentationsandinvestorresponses.Webelievethatbusinessplansmustdealconvincinglywithmarketing,financialprojectionandinvestorconsiderations.Thisseminarwillidentifiesandevaluatesthoseconsiderationsandexplainshowbusinessplanscanbewrittentosatisfythem.

TheprincipalsofCGIhashelpedfundingseveraltechnologicallybasedbusinessesinU.S.Recently,weareworkingonthesecurityandtelecommunicationprojectinWuhan.Thebusinessplanforthisprojectwillbeusedasanexampleinthislecture.

Aftertheseminar,CGIwillassist10localcompaniesinWuhan,eitherprivateorstate-owned,toassemble,organize,describe,anddocumentthebusinessandprojecttodemonstratehowtopreventtheexecutivesormanagersofthosecompaniestooverlookthefundamentalstalkedintheseminar.

PurposeofaBusinessPlan

Toassistinraisingfunds

Tocollectandorderandorderbusinessstrategyanddirection

Toidentifycriticalelementsofthebusiness

Toassessthefeasibilityofbusinessidea

Toplanbusinessactions,ensuresuccess

Tohelpattractgoodpartners/employees

Tovaluebusiness-to-dateinput

Therearethreemajorreasons:

.Thecompletedbusinessplancommunicatesyourideastoothersandprovidesandprovidesthebasisforyourfinancingproposal.

Thebusinessplanadmitstheentrepreneurtotheinvestmentprocess.WithoutaplanfurnishedinAdvance,manyinvestorgroupswon'tevengrantaninterview.Andtheplanmustbeoutstandingifitistowininvestmentfunds.

Onlyawell-conceivedandwell-packagedplancanwinthenecessaryinvestmentandsupportforyouidea.Itmustdescribethecompanyorproposedprojectaccuratelyandattractively.Eventhoughitssubjectisamovingtarget,theplanmustdetailthecompanyortheproject'spresentstatus,currentneeds,andexpectedfuture.Youmustpresentandjustifyongoingandchangingresourcerequirements,marketingdecisions,financialprojections,productiondemands,andpersonnelneedsinlogicalandconvincingfashion.

Asoundbusinessplanisnotonlythebestdocumentforobtainingfunds,itcanhelpyoubuildyourbusiness,weathermarketfluctuations,managesuddengrowth,andprepareforchangingbusinessConditions.Inshort,itcanhelpyoumanageyourbusinessbetter.

.Thefinishedproduct-yourbusinessplan-isanoperatingtool,whichifpropertyused,willhelpyoumanageyourbusinessandworkeffectivelytowarditssuccess.

Acomprehensive,carefullythought-outbusinessplanisessentialtothesuccessofentrepreneursandcorporatemanagers.Whetheryou'restartingupanewbusiness,seedingadditionalcapitalforexistingproductlines,orproposinganewactivityinacorporatedivision,youwillneverfaceamorechallengingwritingassignmentthanthepreparationofabusinessplan.

Goingintomarketeconomicsisnoteasy.InUnitedStates,overhalfofallnewbusinessesfailwithinthefirstfiveyears.Amajorreasonforthisfailureislackofplanning.Thebestwaytoenhanceyourcompany'schancesofsuccessistoplanandfollowthroughonyourplanning.

.Theprocessofputtingabusinessplantogether,includingthethoughtyouputinbeforebeginningtowriteit,forcesyouttakeanobjective,critical,unemotionallookatyourbusinessprojectinitsentirety.

Theimportanceofplanningcannotbeover-emphasized.Bytakinganobjectivelookatyourbusiness,youcanidentityareasofweaknessandstrength,pinpointneedsyoumightotherwiseoverlook,spotopportunitiesearly,andbeginplanninghowyoucanbestachieveyoubusinessgoals.Yourbusinessplanalsohelpsyouseeproblemsbeforetheygrowlargeandhelpsyouidentifytheirsource,thussuggestingwaystosolvethem.Yourbusinessplanwillevenhelpyouavoidsomeproblemsaltogether.

Yourbusinessplancanhelpyouavoidgoingintoareasofbusinessthataredoomedtofail.Ifyourproposedventureismarginalatbest,thebusinessplanwillshowyouwhyandhelpyouavoidpayingthehightuitionoflearningaboutbusinessfailure.Itisfarcheapernottobeginanill-fatedprojectthantolearnbyexperiencewhatabusinessplanwouldhavetaughtyoualthecostofseveralhoursofconcentratedwork.

BusinessPlanOverview

*ExecutiveSummary:1-2pagesonly

*InvestmentOpportunity

*Introductiontocompany,products,visionandgoals

*ProductsandProduction

"MarketAnalysis

*MarketingStrategy:Pricing,Position,Channels

*RiskFactors

"CompanyProfileandManagement

*Actionplan:ResourceNeeds,MilestonesandForecasts

"FinancingPlan:structure,investorproposal,exitstrategy

"Exhibits:e.g.CVs,patents,salesdocs,contracts,financials

Thisbroadoverviewwillhelpyoumakesurethatthedifferentpartsofthebusinessplanmakesense,thattheysupporteachotherlogicallyandcoherently,andthattheywillleavethereaderwithaconcise,convincingstatementthattheprojectandplanarcfeasible.

A.DescriptionofBusinesswillanswerthefollowingquestions:

l.Busi8nessform,Proprietorship,Partnership,orCorporation?

2.Typeofbusiness:Merchandising,manufacturing,orservice?

3.Whatistheproductand/orservice?

4.1sitanewbusiness?Atakeover?Anexpansion?

5.1sitaseasonalbusiness?

.Whathaveyoulearnedabout,yourkindofbusinessfromoutsidesources(tradesuppliers,bankers,accountants,otherbusinessowners,publications)?

.Whywillyoubusinessbeprofitable?

.Product/servicewillanswerthefollowingquestions:

.Whatareyouselling?

.Whatbenefitsareyouselling?

.Whicharesteadycashcows?

.Whicharesteadycashcows?

.Whichareindecline?

.Whatisdifferentaboutyourgoodsandservices?

C:TheMarketwillanswerthefollowingquestions:

.Whobuysfromyou?

.Areyourmarketsgrowing,steady,ordeclining?

.1syourmarketsharegrowing,steady,ordeclining?

.Haveyousegmentedyourmarkets?How?

.Areyourmarketslargeenoughforexpansion?

.Howwillyouattractholdandincreaseyourmarketshare?

.Areyouplanningtoenterorleaveanymarkets?

.Howdoyoupriceyourproducts?

TheCompetitionwillanswerthefollowingquestions:

.Whoareyournearestdirectcompetitors?

.Whoareyourindirectcompetitors?

.Howaretheirbusinessessimilartoanddifferentfromyours?

.Whathaveyoulearnedfromtheiroperations?Fromtheiradvertising?

LocationofBusinesswillanswerthefollowingquestions:

.Whereareyou(orshouldyoube)located?

.Whyisitadurablearea?Adesirablebuilding?

.Whatkindofspacedoyouhave?Whatkinddoyouneed?

.Areanydemographicorothermarketshiftsgoingon?

.Whyisyourlocationconducivetoyoutypeofbusiness(trafficpatterns,locationofsuppliers,accesstodeliveryroutes,highways,etc)?

Managementwillanswerthefollowingquestions:

Howdoesyourbackground/businessexperiencehelpyou