If the plan is directed at people outside of the company, a brief synopsis may appear in the executive summary. This will be supplemented with a more detailed discussion elsewhere in the plan. Mission Statement edit current Status edit number of employees annual sales figures key product lines location of facilities current stage of development (start-ups) corporate structure (options are: names of the majority investor, if any history edit founding date major successes strategically valuable learning experiences Management. To define marketing goals. To define a set of concrete steps for reaching those goals. To describe current progress essay towards those goals, if any. The rationale behind revenue projections is developed by describing the market associated with each product covered by the business plan.
For a new venture, the executive summary might contain citation needed : company information: name of company, proposed legal structure, current legal structure, minority and majority investors. Amount of investment requested expected terminal value description of market opportunity objective reasons why the market opportunity can be essays exploited by this particular team For an internal project plan, the executive summary might look like this citation needed : company information: not applicable description. For example, some of the reasons why a loan is likely to be repaid might equally as well be used as justification for the kind of extraordinary return expected by venture capitalists. In some cases the business plan as a whole contains similar information, but for one type of plan it is mere detail and for another it is a key decision making factor. For instance, both start-ups and internal projects need staff and facilities. However the staffing and facilities needs are considered details in a plan for start-up financing. In a plan for internal projects they are key elements and, in fact, may be the only resources needed. Organizational Background edit In a written plan information may appear in a separate section, an appendix, or may be omitted altogether depending on the nature of the plan.
Once a business plan has been developed, the key decision making points are usually summarized in an executive summary. Executive summary edit, the executive summary summarizes the key points of the business plan. It should define the decision to be made and the reasons for approval. The specific content will be highly dependent on the core purpose and target audience. To get a sense of the difference the purpose and target audience can make, here are three different sets of key points for an executive summary - one for a loan request, one for a start-up seeking venture finance, and one for an internal plan. Items unique to a particular kind of plan are highlighted in bold: A loan request executive summary might contain the following information citation needed : company information: name of company, years in business, legal structure, minority and majority owners brief description of project amount and. This likely will include financial track record the future revenue stream any contracts in place that might guarantee the revenue stream is more than just a forecast.
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During the dot-com bubble this was a problem for many technology start-ups. However, the problem is not limited to essay technology or the private sector; public works projects also routinely suffer from cost overruns and/or revenue shortfalls. The main causes of cost overruns and revenue shortfalls are optimism bias and strategic misrepresentation. This article explains what goes into a business plan and why. It is not specific to any particular kind of business plan.
Nor does it presume with any specific layout. Please do not read the section headings as titles of business plan sections. For information on the various presentation formats of a business plan see the main article business plan. Though business plans have many different presentation formats, business plans typically cover five major content areas: background information a marketing plan an operational plan a financial plan a discussion of the decision making criteria that should be used to approve the plan. Some of these content areas may be more or less important depending on the kind of business plan.
Preparing a business plan draws on a wide range of knowledge from many different business disciplines: finance, human resource management, intellectual property management, supply chain management, operations management, and marketing, among others. It can be helpful to view the business plan as a collection of sub-plans, one for each of the main business disciplines. The format of a business plan depends on its presentation context. It is not uncommon for businesses, especially start-ups to have three or four formats for the same business plan: an "elevator pitch" - a three minute summary of the business plan's executive summary. This is often used as a teaser to awaken the interest of potential funders, customers, or strategic partners.
An oral presentation - a hopefully entertaining slide show and oral narrative that is meant to trigger discussion and interest potential investors in reading the written presentation. The content of the presentation is usually limited to the executive summary and a few key graphs showing financial trends and key decision making benchmarks. If a new product is being proposed and time permits a demonstration of the product may also be included. A written presentation for external stakeholders - a detailed, well written, and pleasingly formatted plan targeted at external stakeholders. An internal operational plan - a detailed plan describing planning details that are needed by management but may not be of interest to external stakeholders. Such plans have a somewhat higher degree of candor and informality than the version targeted at external stakeholders. Cost and revenue estimates are central to any business plan for deciding the viability of the planned venture. But costs are often underestimated and revenues overestimated resulting in later cost overruns, revenue shortfalls, and possibly non-viability.
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There is no fixed content for a business tree plan. Rather the content and format of the business plan is determined by the goals and audience. A business plan should contain whatever information is needed to decide whether or not to pursue a goal. For example, a business plan for a non-profit might discuss the fit between the business plan and the organizations mission. Banks are quite concerned about defaults, so a business plan for a bank loan will build a convincing case for the organizations ability to repay the loan. Venture capitalists internet are primarily concerned about initial investment, feasibility, and exit valuation. A business plan for a project requiring equity financing will need to explain why current resources, upcoming growth opportunities, and sustainable competitive advantage will lead to a high exit valuation.
restructuring of the organization. An internal business plan will often be developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans. Operational plans describe the goals of an internal organization, working group or department. Project plans, sometimes known as project frameworks, describe the goals of a particular project. They may also address the project's place within the organization's larger strategic goals. Business plans are decision making tools.
Business plans may also target changes in perception and branding by the customer, client, tax-payer, or larger community. A business plan that has changes in perception and branding as its primary goals is called a marketing plan. Business plans may also be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. In the case of japanese for-profit entities, external stakeholders would include investors and customers. External stake-holders of non-profits include donors and the clients of the non-profit's services. In the case of government agencies, external stakeholders would include tax-payers, higher-level government agencies, and international lending bodies such as the imf, the world bank, various economic agencies of the un, and development banks.
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This book will guide you through the essay process of writing a business plan. Having a business plan and running your business according to that plan can be fundamental to a business's success. It is also important to have enough capital so you can run your business at a loss until it can turn profitable without going under. Contents, introduction edit, a business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. The business goals being attempted may be for-profit or non-profit. For-profit business plans typically focus on financial goals. Non-profit and government agency business plans tend to focus on service goals.