What are the contents of a business plan?

1. Summary of the plan \x0d\\x0d\ The summary of the plan is listed at the top of the business plan book, it is the essence of the business plan is condensed. The Summary of the Plan covers the main points of the plan at a glance, so that the reader can review the plan and make a judgment in the shortest possible time. \x0d\\\x0d\\ The summary of the plan should generally include the following: company profile; main products and scope of business; market overview; marketing strategy; sales plan; production management plan; managers and their organization; financial plan; financial needs, etc. \x0d\\\x0d\\ When introducing a business, the first thing to do is to explain the thinking behind the creation of the new business, the process of forming the new idea, as well as the company's objectives and development strategy. Secondly, it is necessary to explain the current situation of the enterprise, its past background and the scope of its business. In this section, it is important to comment on the past situation of the enterprise objectively, without avoiding mistakes. A fair analysis is more likely to win trust and make it easier for people to agree with the business plan. Finally, it is important to describe the background, experience, expertise and specialties of the venture entrepreneur. The quality of the entrepreneur often plays a key role in the success of the venture. Here, the entrepreneur should try to emphasize his or her strengths and express his or her strong entrepreneurial spirit in order to make a good impression on the investors. \x0d\\\x0d\\ In the summary of the plan, the enterprise must also answer the following questions: (1) the industry in which the enterprise is located, the nature and scope of the enterprise's business; (2) the content of the enterprise's main products; (3) where the enterprise's market is, who are the enterprise's customers, and what are their needs; (4) who are the enterprise's partners and investors; (5) who are the enterprise's competitors and how do the competitors influence the enterprise's development. (5) Who are the competitors of the company and how do they affect the development of the company. \x0d\\\x0d\\ Abstract should be as concise and vivid as possible. In particular, explain in detail what makes your business different and what market factors have contributed to its success. If the entrepreneur knows what he is doing, a 2-page summary is sufficient. If the entrepreneur does not know what he is doing, the summary may take more than 20 pages. Therefore, some investors "pick the wheat from the chaff" according to the length of the summary.\x0d\\\x0d\ 2. Product (Service) Description\x0d\\\x0d\ When evaluating an investment project, one of the most important concerns of the investor is whether and to what extent the venture's product, technology, or service can solve real-life problems, or whether the venture's product (service) can help customers save money. Or, whether the venture's product (service) can help customers save money and increase revenues. Therefore, a product description is an essential part of a business plan. Typically, a product description should include the following: product concept, performance and characteristics; main product introduction; product market competitiveness; product research and development process; plans for new product development and cost analysis; product market outlook; product branding and patents. \x0d\\\x0d\\ In the product (service) introduction part, the entrepreneur should make a detailed description of the product (service), the description should be accurate, but also easy to understand, so that investors who are not professionals can also understand. Generally, product descriptions should be accompanied by prototypes, photographs or other descriptions of the product. \x0d\\\\x0d\\ Generally, the product introduction must answer the following questions:\x0d\\\x0d\ (1) What problem does the customer want the company's product to solve, and what benefits will the customer get from the company's product? \x0d\\\x0d\ (2) What are the advantages and disadvantages of the company's products compared with those of its competitors, and why do customers choose the company's products? \x0d\\\x0d\ (3) What kind of protection measures does the company take for its products, what patents or licenses does the company have, or what agreements have it made with manufacturers who have applied for patents? \x0d\\\x0d\ (4) Why does the firm price its products in such a way as to generate sufficient profits for the firm, and why do users buy the firm's products in large quantities? \x0d\\\x0d\\ (5) What are the ways in which the firm improves the quality and performance of its products, what are its plans for developing new products, etc.? \x0d\\\x0d\\\ Product (service) descriptions are relatively easy to write because they are more specific. Although it is necessary to praise your product, it should be noted that every promise made by the company is a "debt" that must be honored. Remember that entrepreneurs and investors are in a long-term partnership. Empty promises are only good for a while. If a company fails to honor its promises and repay its debts, its credibility is bound to suffer greatly, and is therefore not something that a true entrepreneur would want to do. \x0d\\\x0d\ 3. Personnel and Organizational Structure \x0d\\x0d\ After having a product, the second step for entrepreneurs is to form a competent management team. Good or bad business management, directly determines the size of the business risk. High-quality management and good organizational structure is an important guarantee of good management of the enterprise. Therefore, venture capitalists pay special attention to the evaluation of the management team. \x0d\\\x0d\\ The management of a company should be complementary and team-oriented. A company must have specialized personnel responsible for product design and development, marketing, production and operations management, and corporate finance. In the business plan, it is important to describe the key management personnel, describing their competencies, their roles and responsibilities in the business, and details of their past experience and background. In addition, a brief description of the company's structure should be included in this section of the business plan, including: the company's organizational chart; the functions and responsibilities of each department; the heads and key members of each department; the company's compensation system; a list of the company's shareholders, including shareholdings, ratios, and privileges; the members of the company's board of directors; and background information on each director. \x0d\\\x0d\ 4. Market Forecasting \x0d\\x0d\ When a company wants to develop a new product or expand into a new market, the first thing it needs to do is to conduct a market forecast. If the results are not optimistic or the credibility of the forecast is questionable, then the investor has to take a greater risk, which is unacceptable to most venture capitalists. \x0d\\\x0d\\ Market forecasting starts with a demand forecast: is there a demand for the product? Is the level of demand such that it will bring the desired benefits to the business? What is the size of the new market? What are the future trends and status of demand development? What are the factors influencing the demand? Secondly, the market forecast also includes the market competition situation? Enterprises face the competitive landscape to analyze: what are the main competitors in the market? Whether there is a market gap in favor of the enterprise's products? What is the expected market share of the enterprise? What will be the reaction of competitors to the company's entry into the market, and what will be the impact of these reactions on the company? And so on. In the business plan, the market forecast should include the following: an overview of the current state of the market; an overview of the competitors; the target customers and target markets; the market position of the company's products; the market segments and characteristics, and so on. \x0d\\\x0d\\ risk enterprise on the market forecast should be based on rigorous, scientific market research. The market faced by the venture company is inherently more volatile and unpredictable. Therefore, venture enterprises should try to expand the scope of information collection, pay attention to the forecast of the environment and the use of scientific forecasting tools and methods. Venture entrepreneurs should keep in mind that market forecasts are not imaginary, and that misperception of the market is one of the main reasons for business failure. \x0d\\\\x0d\ 5. Marketing Strategy \x0d\\\x0d\ Marketing is the most challenging part of business operations, the main factors affecting the marketing strategy: \x0d\\\x0d\ (1) the characteristics of the consumer; \x0d\\\\x0d\ (2) the characteristics of the product; \x0d\\\\x0d\ (3) the situation of the enterprise; \x0d\\\x0d\ (4) the market environment. Factors in the market environment. The final influence on the marketing strategy is the marketing cost and marketing effectiveness factors. \x0d\\\\\x0d\ In a business plan, marketing strategy should include the following: \x0d\\\x0d\ (1) selection of marketing organizations and marketing channels; \x0d\\\x0d\ (2) marketing team and management; \x0d\\\\x0d\ (3) promotional plans and advertising strategies; \x0d\\\x0d\ (4) pricing decisions. \x0d\\\x0d\\ For start-ups, it is difficult to enter into the already stabilized sales channels of other firms due to the low visibility of the product and the firm. Therefore, the enterprise has to temporarily adopt high-cost and low-efficiency marketing strategies, such as door-to-door sales, heavy advertising of goods, concessions to wholesalers and retailers, or handing over sales to any enterprise willing to distribute. For the developing enterprise, it can utilize the original sales channels on the one hand, and develop new sales channels on the other hand to suit the development of the enterprise. \x0d\\\x0d\ 6. Manufacturing plan \x0d\\\x0d\ The manufacturing plan in the business plan should include the following: the current status of the product manufacturing and technical equipment; the new product production plan; technology upgrading and equipment renewal requirements; quality control and quality improvement plan. \x0d\\\x0d\\ In the process of seeking capital, in order to increase the value of the enterprise in the pre-investment assessment, venture entrepreneurs should try to make the manufacturing plan more detailed and reliable. Generally speaking, the manufacturing plan should answer the following questions: what is the situation of the plant and equipment needed for the production of the enterprise; how to ensure the stability and reliability of the new product when it enters into large-scale production; the introduction and installation of equipment, who is the supplier; the design of the production line and the product assembly is how; the lead time of the supplier and the demand for resources; the development of the production cycle standards and the preparation of the production operation plan; the material requirements plan and its guarantee measures; the production of the production line is the most important part of the production process. Material Requirements Planning (MRP) and its assurance measures; what are the methods of quality control; and other related issues. \x0d\\\x0d\ 7. Financial Planning \x0d\\\x0d\ Financial planning requires more effort to analyze, including the preparation of cash flow statements, balance sheets and income statements. Liquidity is the lifeblood of an enterprise, so when an enterprise is starting up or expanding, it needs to have a detailed plan in advance and strict control of liquidity in the process; profit and loss statement reflects the profitability of an enterprise, which is the result of the enterprise's operation over a period of time; balance sheet reflects the situation of an enterprise at a certain point in time, and the investor can use the data in the balance sheet to get the ratio index to measure the operating conditions of the enterprise and the possible return on investment. The Balance Sheet reflects the position of the enterprise at a certain point in time. \x0d\\\\x0d\\ Financial planning generally includes the following: \x0d\\\x0d\ (1) assumptions about the conditions of the business plan; \x0d\\\\x0d\ (2) projected balance sheet; projected profit and loss account; cash flow analysis; and sources and uses of funds. \x0d\\\x0d\ A business plan outlines what the venture entrepreneur needs to do in the fundraising process, and a financial plan supports and illustrates the business plan. Therefore, a good financial plan is critical to assessing the amount of capital the venture needs and to increasing the likelihood that the venture will be able to obtain it. If the financial plan is not well prepared, it will give investors the impression that the management of the enterprise is inexperienced, which will reduce the evaluation value of the venture and increase the business risk of the enterprise, so how to make a good financial plan? This depends first of all on the vision of the risky enterprise? Whether it is to create a new product for a new market or to enter an existing market with more financial information. \x0d\\\\x0d\\\ A venture company aiming at a new technology or an innovative product is unlikely to be able to refer to existing market data, prices and marketing methods. Therefore, it has to forecast the growth rate and net profitability of the market it enters and sell its vision, management team and financial model to investors. A venture firm preparing to enter an existing market can easily illustrate the size of the overall market and how it can be improved. Venture firms can plan the size of their first year's sales based on information about the target market. \x0d\\\x0d\\ The financial planning of the venture should ensure that it is consistent with the assumptions made in the business plan. In fact, financial planning is inextricably linked to the production plan, human resource plan and marketing plan of the enterprise. To accomplish financial planning, the following questions must be clarified:\x0d\\\x0d\ (1) How much product will be shipped in each period? \x0d\\\x0d\ (2) When will the product line expansion begin? \x0d\\x0d\ (3) What is the production cost per product? \x0d\\\x0d\\ (4) What is the pricing of each product? \x0d\\x0d\ (5) What distribution channels are to be used and what are the expected costs and profits? (6) What types of people need to be employed? (7) When will the hiring begin and what is the budget for wages?