Business Plan

IMRAN AHMAD TANVIR

CIIT/SP-13-BS(EE)-014-A/ATK

ELECTRICAL ENGINEERING DEPARTMENT

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ATTOCK CAMPUS, PAKISTAN

2Introduction

A written document that outlines the future activity for an existing and proposed business

venture.

A business plan is a document that brings together the key elements of a business that

includes the detail about the product and services, the cost, sales and expected profits.

Success doesn’t just happen it usually takes thorough planning, and of course, money always

helps.

3Where do you need a business Plan?

A business plan is a necessary tool for all businesses. Just as a home is not built without blueprints

or a movie made without a script, you don’t start a business without a sound and workable

blueprint.

You will learn how much you need to borrow, whether you can afford to borrow, your break-even

point, and whether the business can afford to pay you a satisfactory wage.

4Where Do You Find Help With Business Plan?

With the Internet, sample plans can be freely downloaded and used as a reference. Most banks

and large accounting companies have publications or try these following resources.

Small Business Administration

Entrepreneur Magazine

Center for Business Planning

5What is a Business Plan?

Follow a plan format that ensures you research all the important areas of your business, and if it is

being used for lending or investment purposes, that you have provided all the information that

lenders need. Your first task is to decide why you are preparing this plan. Answer these questions:

Why am I preparing this plan?

Who else will be reading it?

Why will they be reading it?

What do they need to know?

6Executive Summary

A short summary of the overall plan gets the reader interested and

allows you to mention the important aspects of your plan and then

go in depth within the body of the Business Plan.

7Business Description

Things to consider while researching: What is the product or service you are offering? What is your Mission statement? What is your Company vision? Who will you be to your customers? What makes your company better? Can you keep others from duplicating

that? How will it affect your Stakeholders? What are the barriers to you entering this market?

8Business Description

Questions you should answer within your business plan What is your product or service? What needs in your industry are not being met? What methods can you use to meet these needs? What will your market niches be? Who will your key customers be? Will customers buy the product or service more than once? What is the life

cycle of the product or service? What are your company's future goals? 5 years? 10 years? Who are the owners? Is the firm a sole proprietorship, partnership, or corporation?

9Market Overview (Opportunity)

Demographic Education Geographic Area Income Age Gender Psychographic Trends What type of media do they consume? What are their beliefs? Why do you believe they are the type to buy your product? Can you prove it? Phase of life Is your product limited to certain time periods in customer's lives? (e.g., single, child rearing,

retired, empty nest, college age)

10Market Overview (Opportunity)

Questions you should answer within your business Who is your customer – provide a specific description (summarize the

information above that describes your ideal customer) How many potential customers are there in your target area? How are these customers currently being served? What is the unmet need and how will you meet it? Think about how you will win the customers currently being served by others?

11Industry Overview How are the other companies in this Industry set up? Competition – Who, How Many, How Big Stage of Industry (Startup, Growth, Maturity and Declining) What are the Trends? What are the Government Regulations for this industry? What Promotions are other companies utilizing? What Pricing mechanisms are being used by other companies?

12The Marketing Plan (Four P's)

Product Price Place Promotion

Questions you should answer within your business plan: What is your product or service? What is the price? How did you determine this price? Where do you plan to locate your business? What promotional ideas will you use?

13 Segment, Target & Position (STP) Segment Target Position

Questions you should answer within your business plan: How do you promote your product in the market? To whom? 2. What is the position you will go after in the market? 3. What is your value proposition - why is it better? 4. What is the evidence that it will be successful?

14The Organization Plan

What form of a company will be needed, (e.g., Sole Proprietorship, General Partnership, Limited Partnership)

What does management look like? How will management be structured? Will you have any consultants for the business? What questions you should answer within your business plan: How will this Company structure benefit the company and owners? What special skills or experience does the key management have for this industry? What other resources will you be bringing into the company (i.e. consultants,

employees)?

15The Financial Plan Income Statement Balance Sheet Cash Flow Capital equipment and supply list Breakeven analysis Assumptions upon which projections were based Questions you should answer within your business plan: How much money do you need? When will you need money? How many customers do you need to break even? What percentage of your target

market is that? When will you break even?

16Exit Strategy

How do you plan to pay off the investors if the company does not work out? Just in case, show it the other way also. Questions you should answer within your business plan: Is your company separate from you? Is it a legal entity? What is the value of the company at the time of the exiting? How will you pay

off the investors? If you sell? In a partnership make a plan for who retains the company, who gets bought

out and how the price could be determined.

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