The model business plan is as follows:
I. Cover or Introduction: the entire plan title or cover page or introduction.
1. Business name and address.
2. Entrepreneur's name, phone, fax, e-mail, website and mailing address.
3. Business or product logo and slogan.
4, a statement on the confidentiality of the report.
II. Executive summary.
Executive summary is one of the most important parts of the whole business plan, the role is to arouse the interest of investors, because the first thing that potential investors read and analyze is the executive summary section, if the summary section does not attract potential investors, they are unlikely to continue to read down. Therefore, the writing skills of the executive summary section are very important to arouse the interest of bankers and investors.
1. Give a brief description of the business concept.
2. It is important to enumerate any favorable data that indicates the opportunities available to the new business.
3. A statement of how the implementation plan will capitalize on these opportunities.
4. The marketing strategy that will be implemented by the new business and how this strategy differs from that of other operators in the market.
5. Highlight the key financial aspects of the results achieved as a result of implementing this strategy.
6. Important experiences of the entrepreneurs, other important contracts or legal instruments in place and any information that will help in marketing the new business to potential investors should be mentioned in the executive summary.
3. Market analysis.
The market analysis is an assessment of external uncontrollable factors that may affect the business plan, a review of industry trends and the development of competitive strategies. This section clarifies the following issues: customers, market volume and trends, competition and their respective competitive advantages, estimated market share and sales, and market trends. The methods of analysis are:
PEST method of environmental analysis.
SWOT method for environmental and competitive analysis.
Porter's five forces model for industry competition analysis.
The Revenue Cost Approach to Profit Change Forecasting.
Key questions for environmental and industry analysis:
1. What are the major domestic and international economic, technological and policy trends?
2. What were the total annual sales for the industry as a whole over the past five years?
3. What is the growth potential of this industry?
4. How many new companies have entered this industry in the past 3 years?
5. What new products have been recently launched in this industry?
6. Who are the most direct competitors?
7. How can your business outperform the competition?
8. Is the performance of each of your competitors rising, falling or stagnating?
9. What are the strengths and weaknesses of each competitor?
10, What will be the trends in your particular market?
Key questions for competitive analysis:
1. Who are the current competitors?
2. What resources do they control? What are their strengths and weaknesses?
3. How will they react to our decision to enter this business?
4. How would we react to their moves?
5. Who else could have identified and capitalized on the same opportunity as us?
4. An overview of the new venture (business).
This section provides an overall description of the new venture's products, services and operations to help investors determine the size and scope of the business. This section should start with something like the "mission" of the business. The mission describes what the business is and what it wants to achieve in the future.
List a number of elements that adequately describe the new business and give the reader an in-depth understanding of what it does. These elements include:
1. Products or services.
2. The location and size of the business.
3. Staffing and office equipment needs.
4. Entrepreneurial background and history of the venture.
Description of the new venture:
1. What is the mission of the new venture?
2. Why are you getting into this business?
3. What makes you successful in this industry?
4. What have you achieved so far?
5. What is your product or service?
6. Describe the product or service, including trademarks, patents, etc.
7, where will the company open?
8. Is your office building new, old or in need of remodeling? If it needs remodeling, what is the cost?
9. Is your office space rented or purchased? What are the terms of the lease or purchase?
10.Why is this space suitable for your business?
5. Company strategy and execution.
There are different options for organizing the fifth section within the overall startup plan, from having a company strategy as part of it, to putting a marketing plan and an operations plan directly together, which usually depends on the size of the company and the scope of the business.
If strategy is placed alongside the marketing and operations plan, then this section should spell out the following questions:
1. Market entry strategy: low cost, differentiation vs. target agglomeration, or some other approach?
2. Marketing plan: pricing, distribution and promotion.
3. Research and development plan: R&D status and goals, difficulties and risks.
4. Manufacturing and operations plan: operating cycle, equipment and improvements.
6. Production plan or operation plan.
The production plan is a statement of the detailed process of manufacturing a product.
If the manufacturing process is subcontracted, there should be a description of the subcontractor's location, the reasons for selecting the subcontractor, the cost of subcontracting, and the contents of the subcontracting agreement.
If the manufacturing process is done entirely by the entrepreneur, there should be a description of the plant facilities, machinery and equipment necessary for production, as well as the names, addresses and terms of supply of raw materials and suppliers. The cost of manufacturing and the investment in fixed assets that may be required in the future should also be listed.
If the new business is not a manufacturing business but a retail service business, this section should be called the operations plan, and its plan description includes such things as stocking and inventory management, and trading methods.
Key questions for a production plan or operations plan:
1. Will you be responsible for all or part of the manufacturing process?
2. If the manufacturing process is outsourced, who is the outsourcer (subcontractor)?
3. Why did you choose such a subcontractor?
4. What is the cost of the portion of manufacturing that is subcontracted out (provide a copy of the subcontract)?
5. What is the layout of the manufacturing process (preferably with diagrams)?
6. What are the urgently needed production equipment?
7. What are the raw materials needed for the manufacturing process?
8. Who is the supplier of raw materials? What is the reasonable cost of supply?
9. What is the cost of production?
10. What is the future investment in fixed assets required for a new business?
In the case of a retail service business, the key questions are:
1. Where will the required goods be purchased from?
2. How is inventory managed?
3. What should be the inventory level of a new business? How can such inventory be sold out?
4. What is the transaction process in general?
7. Marketing plan.
A marketing plan is a description of the marketing situation and the strategies associated with the pricing and promotion of the distribution of products and services.
Purpose of the marketing plan: the marketing plan is the key to the success of a new business. It enables investors to understand the specific goals of the business and the strategies to be used to achieve them, and it also provides a framework of action for entrepreneurs to achieve their goals; and it provides a basis for forecasting the financial position by budgeting the costs of these strategies.
Marketing plans are usually annual (developed once a year), but the time frame covered by the plan is the first three years of a new business.
Key questions for a marketing plan:
1. Who are the customers?
2. To what extent does the product or service move the customer to buy?
3. How will the product or service be priced?
4. How do you win over specific groups of customers?
5. How much time and resources does it take to attract a customer?
6. How much does it cost to produce and deliver a product or service?
7. How much does it cost to maintain a consumer?
8. How easy is it to retain a consumer?
9, cheap to buy and expensive to sell, as early as possible to collect money, as late as possible to pay.
Eight, organization plan.
The plan of organization is a description of the form of ownership of the new business and the scope of responsibility and authority of each member.
The organizational plan usually answers the following organizational structure questions:
1. What is the form of ownership of the new business?
2. If it is a partnership, who are the partners? What is the content of the partnership agreement?
3. If it is a corporation, who are the original shareholders? How many shares do they each hold?
4. What type of stock is issued?
9. Financial plan.
Financial planning is the projection of those key financial indicators that determine the economic viability of a new business, as well as the return on investment.
The financial plan discusses three main issues:
1. The entrepreneur's sales projections for the first three years and the corresponding expenses.
2. Cash flow statements for the first three years.
3. A projected balance sheet.
X. Risk assessment.
Risk assessment is the process of identifying potential risks or alternative strategies to achieve the goals of the entrepreneurial program.
There are three issues to consider in a risk assessment:
1. Identify the potential risks facing the new business.
2. Describe the consequences of the potential risks if they occur.
3. State what measures will be taken to avoid, minimize, or counter such risks.
The risks of a new business are usually the following:
1, the reaction of competitors.
2. The weakness of the business itself in marketing, production or management.
3. product surplus caused by technological advances, etc.
Even if none of the above factors pose a threat to a new business, the entrepreneur should make clear in this part of the plan why these risks do not exist.
XI Appendix.
The appendices section usually includes additional material that does not need to be shown in detail in the text, as long as the name of the attachment for reference is indicated in the appropriate text or paragraph in the text.
Annexed information may include letters from customers, distributors, or subcontractors; leases, contracts, or other agreements that have been signed; and quotations from suppliers and competitors.