Ⅰ. Title Page
Put a color image of your product on the first page. But leave enough space for the following:
A. Company name
B. Year and month of registration
C. Nature of the company
D. Company address
E. Name of the person in charge of financing
F. Position
G. Phone number
H. Fax number
I. E-mails
J. mail
J. Company Home Page
K. Report Confidentiality Level
L. Business Plan Number
Company Name: Signature: Date:
II. Table of Contents
After the preliminary business plan, make sure that the table of contents page numbers are consistent with the content
III. Executive Summary
A. Purpose of the Plan
a. To provide information to the prospective VC
b. To provide basic data and principles for the future operations of the program
B. Company Overview
a. Date of Establishment
b. Industry of operation, e.g., manufacturer of baby products, distributor of pencils, provider of medical services
b. supplier of pharmaceutical services
c. Form of legal incorporation of the company, e.g. limited liability company, joint stock company, partnership
d. Composition of contributing ownership
e. Location of our principal office[x]
C. Business
a. Description of the products or services offered, where the company is in the [seed,startup,growth] stage, just [... developed our first product, hired our first salesperson, signed our first order].
b. In the recent [ period ], our company has accomplished [ x ] sales and has shown [ profit, loss, break-even ] Considering the capital problem, we expect to accomplish [ x ] sales and [ x ] pre-tax profit in [ year ]. Finish with [ x ] profit before tax in [next year].
c. If there were enough money we would [describe what you would do with the money e.g.: 1. market new products 2. manufacture or supplement equipment to meet growing market demand, 3. increase retail outlets or use other methods to improve distribution channels, 4. enhance research and development of new products or improve existing products]
D. Products and Services
a. State your product or service so that others can read it. services so that others can understand them. The [ company ] produces the following products [list the products briefly, emphasizing the significance of the product line and the maximum amount of sales it can generate]
b. Our [ product or service ] is currently in the [ introductory, growth, and maturity ] period. We plan to expand our product line to include [ x, y, z ] to perfect our [ product or service ].
c. The key features of our product in terms of production or distribution etc. are [ x , y ].
d. Our [product or service] is unique because of [ x , y , or z ].
e. Our market positioning advantage is due to our [ patents, speed of sales, trademark name, etc. ].
E. Management Team
Our team consists of [ x ] men and [ x ] women with [ x ] years of experience working together; [ y ] years of experience in sales
[ x ] years of experience in product development, and [ x ] years of experience in [ x ] in [ other areas ].
F. Marketing Overview
G. Competitive Environment
a. Analyze [name of company] that competes directly with us or with whom we have no direct competitors, but have substitutes or related offerings in the marketplace for our [ product or service ].
b. Our product is unique because if we can [ x ], or we have a competitive advantage because of our [ speed of sales, established trademarked brand, low cost of manufacturing ].
H. Funding Needs
a. We are seeking [x$] as an additional investment for [ ] which will allow us to [ Describe why you need the funding, and what is so inspiring about this opportunity ].
b. In [ x ] years we will use the remaining profits to dividend or re-finance, or sell the company, or go public to finance an exit.
I. Risks and Opportunities
a. The biggest risks to our business are [ Market Risk, Pricing Risk, Product Risk, Management Risk ]
b. We feel that we can overcome these risks because if we can [ x ]
c. The business opportunities in front of us are very meaningful to us; if we can [ x ]we have the opportunity to turn [ a localized advantage in the marketplace into a huge advantage for the industry as a whole].
Ⅳ. COMPANY OVERVIEW
A. Vision
a. We aim to be [ Describe your ultimate goal, e.g. to be the number one brand of low-fat cheese]
b. We aspire to be reputable in the marketplace and to offer the marketplace [ time-savings, better production methods, and reasonable pricing ]
b. We aspire to maintain a good reputation in the marketplace and provide [ time savings, better production methods, and reasonable pricing ]
c. We have been able to achieve this by using [superior product development, keeping abreast of market trends and needs, being innovative, and using effective distribution and packaging]
c. In order to achieve our goals, we should be grateful to those who have been interested in our development, our customers, and the public for [Describe the honors that you have sought] the following people who have helped us succeed [Describe the ways in which each group has helped you in your company]
c. group of people who have helped your company in a relevant way]
B. Vision
C. The company was founded on [date] and [ Describe your product or service. For example, distributor of pencils, provider of pharmaceutical services].
D. The full legal name of the company is [ x ]. Legal form of the company e.g. Limited liability company, Joint stock company, Partnership, Sole proprietorship, Office location of our principal [ x ]. Give the distance of the office from the plant and warehouse.
E. Keeping a monthly count of our recent production, we need a bigger [plant, R&D team, ...] if we wish to produce [x] per month. With financial help, we estimate that our existing equipment will be able to meet our needs for the next [year, month, and year].
F. If the company engages in [contamination of water, armament weapons, genetic engineering, blasting engineering, and the use of state-prohibited resources in production and services] the business license will be immediately revoked, while engaging in activities other than those authorized by the government is not allowed.
G. The company complies with all operating regulations and has up-to-date inspection records. These records include [the main ones]. These organizations are responsible for regulating those aspects of our business where we must ensure the accountability of our employees.
H. Strategic partners of the company: How you maintain relationships with strategic partners is very appealing to investors, explain how you work with them and improve your performance. Your company can provide partners with important and profitable development of their own in the process of establishing larger-scale cooperation. Describe the details of each of your partners' positions in the market and explain what the biggest pitfalls of your cooperation are. For example, we have a marketing agreement with [x] and an alliance with the market leader in erasers, which facilitates our sales of student pencils. The supply and demand side*** can capture the market with the same segmentation of the retail sector, which can help us cut through the market quickly. The risk of the partnership is that the partner may choose to sell [pencils] on its own and exclude us.
I. Another strategic relationship that could be beneficial to the company is a joint venture with [x]****. We never invest in the initial stages of research, we can split our R&D time in two, we make full use of underutilized manpower and equipment, which effectively avoids expenditures [employee salaries, equipment purchases], and we are willing to pay a commission fee for this in appreciation of our development partner's contribution to our ultimate success.
J. We have a strong relationship with our suppliers, where we buy in bulk at 80% of market price, and they agree not to release large quantities of their product to the market for 6 months, or to give us a special price
K. We also have some OEM strategic partners, so if we make skate wheels, then the boot maker pretty much relies on us for their skate attachments. If we are manufacturing skate wheels, then the boot manufacturers almost rely on us to buy their skate accessories. These relationships ensure that we have a large and stable market, and these links allow us to dominate the market, even though he has a small market share for us and no trademark.
V. INDUSTRY ANALYSIS
A. What kind of industry we are going to enter
B. Industry
a. History
b. Present Situation
B. Customer Analysis
C. Competitive Analysis
a. Overseas
b. Local
D. Availability of Raw Materials
E. Threats of New Entrants
E. Threats of New Entrants
a. Overseas
b. Local
F. Substitutes
G. Conclusion
a. Timing of Entry
b. Success Factors
VI. Product and Risk
A. Product Description
a. R&D History
b. Technical Specification
c. Empirical Proof
B. Yield Targets
a. Economies of Scale
b. Mission and Sales Forecasts
C. Operational Processes and Functional Setup
D Operational Approach
a. Rationale
b. Feasibility
E. Site Selection
a. Principles
b. Comparisons
F. Labor Requirements
G. Research and Development
H. Logistic Management
c. Supply and Purchase of Raw Materials and Equipment
d. Transportation
e. Misc. p>
e. Miscellaneous
H. Quality Control
I. Production Planning
Ⅶ. Competitive Analysis
A. Describe what your core competencies are in terms of product, management, price, location, and financial plan. Errors and unclear information are considered dishonest and negligent to investors. Don't let you or the VC get confused about your competitive advantages. Find out about other companies' competencies through the telephone yellow pages book, industry directories in your local library, and online databases. Look at magazines related to the industry and look for those who run industry ads.
B. We don't have direct competitors, but we do have competitors who produce alternatives to our product. Or the competitors of our product are [a,b,c], give a detailed analysis of each of your competitors, be very detailed. [e.g. Dong's Company is a pencil manufacturer in the Northeast who has sales of $3 million, it is a subsidiary of the acam group which has company-wide sales of $8 million and includes the production of pencils, pens and other stationery for writing and drawing. The subsidiary is currently at a standstill because the head office has not provided the working capital to improve the machinery and equipment.The subsidiary is headed by a vice president who has been on the job for 6 months and the previous manager was in charge for 11 months.
C. Are you and your competitors using the same distribution channels, publicizing promotions with the help of the same business magazines.
D. Reasons why our product is unique [x] and why we have a leading competitive advantage [low cost, fast time to market, brand name]
Ⅷ. Market and Sales Strategy Analysis
A. Market Analysis
For most business plans, this section is the most critical and difficult to prepare
a. Defining the Target Market
We want to be able to compete in a well-defined segment of the industry that is already close to [x$] in the [wholesale/retail] market by [y] with reference to the relevant geography. has been close to [x$]. Future market trends will focus on factors such as environmental friendliness, value, high quality and miniaturization of products. Market research data reports (source provided) indicate that the market will [rise, shrink] to [x%] by [year]. We expect the business to [rise/shrink/stay/stagnate] over this period. The major factors that will have an impact on the change in the business are [price cuts in computer products, developments based on household consumption, etc.] and the maximum size of the industry growth will be [x].... Identify your source of information and whether it is up to date.
b. Market Segments
We define our market segment [Producers of stationery for homes/schools/companies, producers of low-fat cheeses within the food sector], and this market segment has been [stable/unstable] for the last few years. Industry expert, [name], predicts [x] in the coming years. Briefly list the major segments of the market [a,b,c], the types of customers you want to win over [electronics orderers, catalog brochure buyers, retailers]. Product [x] in market segment [x] has a retail price in the range of [x-y] based on [model number]. The distribution of product sales in this market segment is through [retailer, manufacturer, raw material supplier]. Our typical customer is currently using an alternative to our product, what makes them want to buy our product [price/performance/quality]. How do we know about these key [customer feedback/advertising inquiries/trade shows]. We feel that customers are concerned about the [value/performance/taste] of our products. Despite the [high price/inadequate brand protection] of our products, we are trying to clarify the [x] positioning of our products in the market to overcome our weaknesses .
B. Marketing
a. Our marketing plan is based on [x] of the following conditions. We expect to successfully penetrate [x] portion of the [x] market as we use [retail/distribution/mail/internet] as the primary sales channel for our product. We expect to achieve [x%] market share.
b. [MARKET POSITIONING] We will position our products as [LOW PRICE / HIGH QUALITY / GOOD VALUE], which my competitors are not able to reach currently. We will adjust our products according to the different needs of different types of customers such as [nationality/age of life/elderly etc.].
c. [Price] Our price [strategy\strategy] is based on cost, gross profit, or market. We reach this price based on [gross profit, price in the market, cost, or perceived product value]. We watch our prices monthly, quarterly, and annually to make sure we don't lose potential value in the marketplace. How much are customers willing to pay for our products? For what?
d. [Distribution Channels] Our products are distributed through [wholesale, mall retail, or other means]. [Seasonal variations/geographic location/customer characteristics etc.] These will determine whether we get the product to the end user or not. Competition in the market uses these avenues [wholesale, mall retail, or other means], but we have the advantage of [x]
e. List your key customers [top 5] and describe them in a sentence or two. Details can be found in the appendix, showing how we extend our product to the consumer.
f. [Advertisements, Promotions, Trade Shows], your goal is to introduce, promote, and support your product in the marketplace, although proper advertisement design, and promotions for the business will cost money. The company already has a comprehensive advertising plan and promotional strategy. It will be implemented when the funds are in place. We want to advertise in business magazines nationwide. We plan our own advertising and use it as part of our overall strategic advertising for our ingredient providers and partners. Our PR plan is to maintain good relationships with business journal reporters and editors, and to provide check-in material to enhance our credibility in the marketplace, and to let customers know about us.
g. We promote our products through a variety of channels [on-site production of samples/display of different sides of the product] or otherwise, our goal is to expand our customer base, enhance brand awareness of our products, and strengthen our ties with the public. The company participates in those commercial exhibitions, listing the main ones: the organizers, the participating vendors, the location of the exhibition and the standard of the booths, which facilitates the introduction of our new products. Or we participate in several exhibitions where we present our products only to those buyers who are interested in them. Whether the exhibition is favorable for us to distribute the introduction of our company to the target customers, whether the location of the exhibition is reasonable, whether the time is reasonable, whether it is a show that we must go
Ⅸ. Risks and Opportunities
A. Entrepreneurial Risks
a. This is also critical to the overall plan, VCs are interested in the challenges your business faces and the measures to address them. Document the problems you encountered during the development of your business and the strategies to deal with them.
b. The main problems we encountered as we grew were [limited operating history, shortage of resources, lack of management experience, market and product uncertainty, reliance on key management....
c. Assessment of business weaknesses
d. Contingency plans
e. New technologies
B. Opportunities
a. This is also critical to the overall plan and will give the whole business plan a sparkle to get people excited.
Although there are risks accompanying our business, I think we can overcome these difficulties because [x]. We will either embark on extensive learning or partner with a larger company that understands the market. We will focus our efforts on [x] and use it to solve problems in marketing, products, management, etc.
b>We will also focus on [x] and [x].
b. If we can beat the risks, we will dominate a market segment and become a major force in the industry. Our brand will be recognized by customers and VCs, and we will be able to achieve this in year [x] In particular, our leading products will have the opportunity to influence the state of people's lives, change production, and improve performance in certain areas. We will thus also be able to enter into areas we have not been in before [international markets / different age groups]
Ⅹ. Management Team and Ownership
A. Management
a. Type of Company
b. Structure
c. Managers' Responsibilities and Resumes
d. Employees
It is important to not only describe your managers, but to articulate how they work together as a team***. Our team is made up of some of the following people [x]. [x] men, [x] women who have been ****ing together for [x] years, [x] in marketing for [x] years, [x] in product development for [x] years, and a few others with [x] years of history in [x] areas. Frankly, it would be nice if you had more people in management. President / VP Finance / VP Marketing / VP Operations / VP Sales / VP R&D / Legal Counsel Describe who they are, how old they are, and what their company stock ownership is.
B. Ownership Structure
Name Stock Share
[A B Creator] 52 [52%]
[C. D Investor] 22 [22%]
[Management Team] 10 [10%]
[Seed Investor] 10 [10%]
C. Professional Institutions
Finance Companies/Legal Advisors/Other Consulting Organizations
D. Other Guidance
We also have a number of other helpers that we use to assist us in decision making and to capitalize on business opportunities. List the help of these people or organizations, what kind of experience they have and how they can contribute to the company's order. Where they are and why they would benefit our strategy.
Ⅺ. Funding Requirements
A. Requirements
a. Amount
b. Timing
c. Type of Funding
d. Source of Funding
B. Other Funding Requirements
C. Use of Capital
We are looking for [$] to be used as an additional investment [in net assets, restructured debt, or other forms of higher level of investment] It would be for us to be able to [ describe why you need the capital, and why you are excited about the opportunity].
The initial investment will be used for [employee salaries/project development/market introduction/competitor information/equipment purchases] as listed below
Development [$x]
Equipment purchases [$x]
Marketing and new product lines [$x]
Operating capital [$x]
[x] years we will use the remaining profit sharing or restructuring of debt to fund this opportunity. will use the remaining profits to pay dividends or raise money again, or the sale of the company, or go public to finance an exit . These why will be realized.
D. Financial Plan
A. Profit and Loss Projection Statement
B. Cash Flow Projection
B. Asset and Liability Projection Statement
C. Breakeven Analysis
D. Sources and Application of Funds
[Revenue Projection Statement] We recommend that for the first two years we tally up the number in months, and try to change it to as many days as possible if we have a unit of years. Sales are expected to grow after a new or improved product is introduced. In the following plan we briefly describe our products [in detail]. We hope that the growth rate of sales for each month of the introduction will be [x] within [x] months
We will be in the market to buy more efficient raw materials or utilize new equipment to reduce the production process and reduce wastage. This will reduce our consumption ratio by [x%].
Gross profit will remain the same [new product introductions will wait until there is more profitability]. Selling and administrative expenses will go up, but as a percentage of costs will decrease [list some of the largest orders and what they mean] because we will have a higher market return.
R&D which was a larger percentage of sales in the early years will decrease as the percentage changes. After investing in [resellers/R&D/other sales channels] we will have greater value.
The basis on which you organize this data, and the calmness with which you are confronted with it, is very important for investors. Discuss the size of the market, the volume of the market, the timing to capitalize on the market, and the impact of your competitive pressures on these numbers.
Talk about the significance of how some of these numbers have changed from period to period, including the rationale for why your performance has risen, and the reasons for business expansion.
[Balance Sheet] Marks up some of the items, such as cash/ability to pay/growing debt
[Cash Flow and Breakeven Analysis] This is even more important than the break-even sheet; how much money you'll have in surplus at the end of the day is a big concern for investors.
We estimate that our supply will meet our demand range of [x] when we reach [x] in the amount of money we consume each month. We estimate that we can gather funds in [x] time because we have [special payment methods for large customers, cash-on-delivery methods, credit card charges], etc.
We estimate that our first investment will be made in month [x], and we will break even in month [x]. We will make a profit in month [x] and what will be the price at the winning point.
Appendix
A. Letters E. Quotations from Suppliers
B. Market Research Data
C. Agreements or Contracts
Attachment 1: Critical Issues in Industry Analysis
1. Total sales in the industry over the past 5 years?
2. the industry's projected growth rate?
3. How many new entrants have there been in the industry in the last 3 years?
4. who are the closest competitors?
5. What are the most recent new products in the industry?
6. How can your business be run to outperform that competitor?
7. Are the sales of each of your key competitors increasing, decreasing, or flat?
8. What are the strengths and weaknesses of your key competitors?
9. What are the characteristics of your customers?
10. How do your customers differ from your competitors' customers?
Attachment 2: Key Questions in Venture Analysis
1.
2. What is the specific description of the product or service including patents, copyrights, trademarks?
3. Where will the company be built?
4. Is your building new or old? Does it need to be refurbished? , list the cost
5. Is the building leased or owned?
6. Why is the building or location suitable for your business?
7. What additional skills and personnel are needed to run the business?
8. What office equipment is needed?
9. Will this equipment be purchased or leased?
10. What is your business background?
11. What management experience do you have?
12. Describe personal information such as education, age, specialties and hobbies
13. Why are you involved in this business?
14. Why are you successful in this venture?
15. What development work has been done so far?
Attachment 3: Production Planning Key Questions
1. Will you be responsible for all or part of the manufacturing of the product?
2. If certain manufacturing processes are subcontracted, who will be the subcontractor? (Give names and addresses of subcontractors.)
3. Why were these subcontractors chosen?
4. What is the cost of subcontracted manufacturing? (include several written contracts)
5. What is the layout of the manufacturing process? (List steps if possible.)
6. What equipment is needed to manufacture the product?
7. What raw materials are needed to make the product?
8. Who are the suppliers of the raw materials? What is the corresponding cost?
9. What is the cost of manufacturing the product?
10. What are the future capital equipment needs of the venture?
If it is a retail or service business:
1. Where will the goods be purchased?
2. How will the storage control system operate?
3. What is the demand for inventory? How will inventory be promoted?
Schedule 4: Organizational Plan Key Questions
1. What is the form of ownership of the organization?
2. If it is a partnership, who are the partners and what are the terms of the partnership agreement?
3. If it is a stock corporation, who are the principal stockholders and how much stock do they own?
4. What types of stock are issued? And how many voting and non-voting shares are issued?
5. Who are the members of the board of directors? (Give names, addresses, and biographies.)
6. Who has check-signing authority and control?
7. Who is a member of the management team? What is his or her background?
8. What are the roles and responsibilities of each member of the management team?
9. What is the salary, bonus, or other form of pay for each member of the management team?
9. What is each member's salary, bonus, or other form of pay?