Detailed explanation of business plan elements

Detailed explanation of business plan elements

The business plan is not completed in the same day, because it is a process of continuous improvement and is influenced by many external factors, such as economic environment and geographical influence. However, the overall business plan will contain several main factors. In the next time, we will learn more business plans for entrepreneurs and help them embark on the road of financing.

summary

Abstract is the first part of a business plan and the most important part of your business plan. As the name implies, this part is an introduction to the whole business plan, the history of the company and an overview of the basic situation of the company. Abstract is the front of the business plan, and you should arouse investors' interest in reading it. You must tell investors why you think your company will succeed. Although the outline is the beginning of a business plan, it is often completed at the end. Because when you finish writing the rest of the plan, you can sum it up better.

Specifically, the summary includes the following contents:

Mission statement: A mission statement is a brief overview of your company's business, which can be displayed in two words, two sentences or a paragraph, or even a picture.

Time of establishment of the company

Introduction to the founder and his job responsibilities

Number of employees

Place of business and any branch or subsidiary

Description of company equipment

Description of the company's products or services

Bank relations and existing investor information

A milestone in the development of a company (for example, the company has doubled in one year, or the company is the first company in the industry to provide certain services).

If you just start a business and some of the above contents can't be presented to investors, then you should focus on your experience and professional background and show your determination to start a business. You can describe the problems and solutions in the target market and tell investors about your innovation. Make sure that your business is what consumers need, and then describe your outlook for the company.

Maybe you will meet an investor who asks you to present your summary in the form of a table. At this time, the title of the content should be as broad as possible, in other words, avoid detailed description.

Market analysis is the second part of business plan. In this part, you should describe the industry in which the company is located, and you should also show the results of the market survey, but the details about the market survey are attached to the business plan.

This part includes the following parts: industry overview, target market information, market survey results and evaluation of competitors.

Industry overview

Including the description of the original industry, the current industry scale and growth rate, industry characteristics and trends, the main consumer groups of the industry.

Determine market targets

When determining the target market, the biggest problem is to control the market within a reasonable range. Many startups will make a mistake, that is, they think they can sell their products to everyone, and such target market positioning is often a failure.

market test

Remember, you only need to write the test results into the business plan, so you only need to pay attention to the results. Details of the test are attached. Market testing includes information and demonstrations of potential customers and existing customers, the importance of adapting to the needs of the target market, and the price that the market accepts your products or services.

Production preparation stage

The production preparation stage refers to the time period between the customer placing an order and completing the order, so when investigating this part, you should specify the production preparation stage of your product or service.

Opponent analysis

When doing competitor analysis, you need to determine the importance of your target market to competitors according to product lines, market segments, and evaluating competitors' strengths and weaknesses, and also consider many factors that prevent you from entering the market.

Make sure that all your competitors correspond to all your products and services, understand their market share, and estimate how long it will take for new competitors to enter the market.

The competitive advantages of competitors are presented in various forms, but generally include the following points:

Ability to meet consumer demand

Large market share and high consumer awareness.

Good work record and reputation.

Strong financial resources and abundant reserve resources.

talent

The weakness of competitors, in turn, is the advantage of your company. Therefore, when entering a field, we should analyze the weaknesses of competitors, such as whether they can meet the needs of consumers? They don't have strong market penetration, their work records are not up to standard, their resources are limited, will they retain outstanding talents and so on. If you find a competitor's weakness, you should find out the reason of this weakness, so as to avoid repeating the same mistakes.

If your target market is highly competitive, you should be prepared to overcome some obstacles, including:

High investment cost

Time required for starting a business

Change technology

Lack of talent

Customer resistance

Existing patents and trademarks that you can't infringe.

The company profile is the third part of the business plan, which also needs no detailed description, including the nature of the company and the success factors of the company.

When determining the nature of the company, you should list the market needs you need to meet, including the plan of how products and services can meet the needs of customers. Finally, find out the specific individuals or organizations that meet these needs.

Success factors include excellent ability to meet customer needs, efficient methods to introduce products and services, outstanding talents or companies in core fields, and so on. These are the competitive advantages of the company.

Organization and management

Organization and management is the fourth part of the business plan, including: the company's organizational structure, the company's equity details, the company's management team and the board of directors.

Who does what in the company, their background, the reasons why they are included in the company's board of directors or called employees, and their personality. It seems that these problems are completely unnecessary for a company with only one or two people, but investors want to know who is managing the project they want to invest in, and also explain in detail the responsibilities of various departments in the plan.

system

A simple and effective method is to draw an organizational chart with narrative description. Once the organizational structure is determined, there is no room for change, so you should think clearly about who is doing what and who is in charge of all departments in the company. Nothing is neglected and nothing is done three or four times, which is very important for investors.

Ownership information includes the legal structure of the company and the subsequent ownership. Did you merge the company? If it has been merged, is your company C or S? Maybe you have formed a cooperative relationship with a company. If so, is the partner a general relationship or a responsible shareholder? Maybe your company is a joint venture,

Important ownership information that should be included in your business plan includes:

Owner's name

Owner ratio

Degree of participation in company affairs

The forms of company ownership are common stock, preferred stock, general partner and limited liability shareholder.

Outstanding equity equivalents, such as options, warrants and convertible bonds.

common stock

General situation of management

Experts agree that the ability of the company's management team and its performance record are important factors for the company's success. So let investors know the key figures of your company and their background, and provide a team resume including the following information:

(full name)

location

Main responsibilities and authorities

educational level

speciality

Past records

Enterprise recognition

social practice

Working hours of the company

Salary situation

Among them, we should pay attention to quantitative achievements, such as managing a sales team with 10 staff and a department with 15 staff, increasing annual income by 15% in the first half of the year, expanding two sales outlets every year, and improving the customer service score from 60% to 90%.

We should also emphasize how the abilities of people around us complement each other. If you are just starting a business, emphasize the role of everyone's expertise in the success of the company.

board of directors

The main advantage of the free advisory committee is that it can provide you with expert advice for free, and having a list of board members of famous and successful people in the industry can enhance the company's reputation and perceived management experience.

If your company has a board of directors, you need to write the following information in the business plan:

Names of members of the board of directors

Position on the board of directors

Participate in company affairs

background

Contribution to the company

Marketing and sales management is the fifth part of the business plan. Sales is the process of creating customers, and customers are the life of the company. First, you should determine the marketing strategy. There are many ways to formulate marketing strategy, among which marketing strategy is a part of your ongoing business, evaluation process and company characteristics. But there are also some basic steps, which can help you formulate strategies to promote sales and maintain customer loyalty.

A complete marketing strategy should include four parts:

Market penetration strategy

Development strategy: this part includes internal strategies, such as how to increase your human resources; The acquisition strategy is to acquire another company; Franchising strategy of branches; The horizontal strategy is to provide similar products to different customers; Vertical strategy refers to the distribution chain strategy that provides the same product but aims at different levels.

Distribution channel strategy: The selection of distribution channels should include original equipment manufacturers, internal sales teams, distributors and retailers.

Communication strategy: How do you plan to let consumers know about your products? Usually the following strategies are the most effective: promotion, advertising, public relations, personal promotion and some leaflets.

When you make a marketing plan, you should make a sales strategy, which can help you sell your products.

Sales strategy includes the following two important parts:

Salesperson strategy: If you plan to form a sales team, do you plan to select from within or recruit independent sales representatives? The number of sales team, what recruitment strategy will you adopt? How to cultivate your own sales team?

Sales activities: A good sales plan should be integrated into existing activities. First of all, you need to identify potential customers and present them in the form of a table in order of priority. Secondly, determine the number of sales visits in a certain period of time, as well as the average number of visits per business and the average cost of each sale.

The service or product line is the sixth part of the business plan. In this section, describe your product or service and emphasize the benefits of potential customers and existing customers. For example, if you open a restaurant, don't tell your investors how many dishes your restaurant has, but tell them why your restaurant is so busy. Professionals prefer to shop in stores that record customer preferences.

Choose an industry where you have obvious advantages, understand the problems in your target market and the solutions provided by your products or services, and convince your investors which consumers will pay for your solutions. List your company's services and products and make a marketing plan. Provide information about suppliers, availability and product prices. And explain the new product information.

This section should include:

A detailed description of the product or service, including the characteristics of the product or service, how the product meets the needs of customers, the advantages of the product compared with competitors and the development stage of the product.

Explain the product life cycle and any factors affecting the product life cycle.

Copyright, patent and trade secret information: this part should include documents related to copyright and patent, as well as the characteristics of products that have not yet obtained copyright or patent. Finally, any relevant information should be added to existing legal agreements, such as confidentiality agreements or non-competition agreements.

R&D activities ((r&; D)): This part includes any activities related to new product development, and you should write down your comments on (R&; D) expectations.

The financing demand is the seventh part of the business plan. In this section, you should explain how much it costs to start or expand your business. If necessary, you should also explain several different financing situations, such as the best and the worst. But remember, you need to provide corresponding support for the financing department, such as financing statements.

Specifically, financing needs should include the following contents: current financing needs, financing needs in the next five years, the use of funds, and any long-term financial strategies that affect your financing. When you summarize the current and future financing needs, be sure to explain the amount of funds, the term of each financing, the type of funds you need and the terms you apply.

For investors, how you use the funds you raise is very important. Is it used for capital expenditure (spending on purchasing, increasing, improving or extending the life of fixed assets) or working capital or repaying debts or acquisitions? All these should be listed in this section.

Finally, be sure to list any strategic information that will affect your future financial situation, such as your company's listing, debt acquisition, debt repayment plan, and whether you intend to sell the company in the near future. These strategic information are very important to your investors, because they have a direct impact on your company's solvency.

The appendix is the last part of the business plan. This part of the content should not be placed in the main part of the business plan, because your plan is a communication tool, so many people will see your plan. But there are some things you don't want everyone to see, but for a special envoy like an investor, you need these things as the basis for your decision. So the appendix is also an important part of the business plan.

The appendix shall include the following contents:

Credit history, including individuals and companies.

Resumes of key figures

Product picture

Market survey details

Related magazine articles and bibliography

License, permit or patent

legal document

Lease attachment

licence

contract

Business advisory members, including lawyers and accountants.

You should stop copying your business plan. Make a record. Also remember, if you plan to raise money, attach a disclaimer.

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