Each team will create a business idea and will write a short business plan of the idea. These ventures should be small sized business-oriented initiatives. Each team have already finalized a business idea and submitted a one-page synopsis in the class. It will be a start-up venture for which the team will develop a detailed description and analysis of its proposed strategy. The teams will refine their business ideas by applying the tools that we discuss in the class. The final report should include all the necessary components of a business plan.
Outlines of the Business Plan
You report should include the following sections (15 to 20 pages, single space, 12 Time New Roman, one inch margin on all sides):
1. Cover Page and Table of Contents
2. Executive Summary
3. Description of the Business and the company, Legal Issues
4. Industry and Market analysis
5. Business Model
6. Marketing Plan
7. New Venture Team
8. Financial analysis and Sources of Funds
9. Appendix
Section wise Detailed Instructions and Guidelines
Outline of the Business Plan: Exploring Each Section of the Plan
1. Cover Page and Table of Contents. The cover page should include the
name of the company, its address, its phone number, the date, and contact
information for the lead entrepreneur.
2. Executive Summary. The executive summary is a short overview of the
entire business plan; it provides a busy reader with everything that needs
to be known about the new venture’s distinctive nature.
a. Although the executive summary appears at the beginning of the
business plan, it should be created after the plan is finished. Only then
can an accurate overview of the plan be written.
b. An executive summary shouldn’t exceed two single-spaced pages. The
cleanest format for an executive summary is to provide an overview of
the business plan on a section-by-section basis.
3. Company Description. The main body of the business plan begins with a
general description of the company. Although at first glance this section
may seem less critical than others, it is extremely important. It
demonstrates to your reader that you know how to translate an idea into
a business.
i. The company description should start with a brief introduction, which provides an overview of the company and reminds the reader of the reason it is starting.
ii. Products and Services: Pitch of the business, How products and services are unique, solve problems, and supported by the trends.
iii. The sections to include in this portion of the plan include: Vision, Mission Statement, Current Status, Legal Status and Ownership, proposed organizational structure, and Key Partnerships (if any).
4. Industry Analysis. This section should being by describing the industry
the new business will enter in terms of its size, growth rate, and sales
projections. It is important to focus strictly on the business’s industry and
not its industry and target market simultaneously. Before a business selects its target market, it should have a good grasp on its industry—including where its industry’s promising areas are and where its points of vulnerability are located.
a. The sections to include in this portion of the plan include: Industry
Size, Industry Structure (five forces model) , Nature of Participants,
a. Industry trends should be discussed, which include both environmental
and business trends. This is arguably the most important section of an
industry analysis because it often lays the foundation for a new business idea in an industry.
5. Market Analysis. While the industry analysis focuses on the industry that
a firm will participate in, the market analysis breaks the industry into segments in on the specific segment (or target market) to which the firm will try to appeal.
a. The sections to include in this portion of the plan include Market
Segmentation and Target Market Selection, Buyer Behavior, and
Competitor Analysis.
6. Business Model:
a) Describe the Nine components of your business model
b) Present Business model canvas
c) Highlight your Value proposition
d) Value Proposition canvas
e) Value proposition hypothesis
7. Marketing Plan. The marketing plan focuses on how the business will
market and sell its product or service. It deals with the nuts and bolts of
marketing in terms of price, promotion, distribution, and sales.
a. The sections to include in this portion of the plan include Overall
Marketing Strategy and Product, Price, Promotions and Distribution.
b. A firm’s marketing strategy refers to its overall approach for marketing
its products and services. A firm’s overall approach typically boils
down to how it positions itself in its market and how it differentiates itself from its competitors.
c. The next section should deal with you company’s approach to
product, price, promotion, and distribution.
8. Management Team and Company Structure. This is a critical section of a business plan. Many investors and others who read business plans look
first at the executive summary and then go directly to the management
team section to assess the strength of the people starting the firm.
a. The sections to include in this portion of the plan include: Management
Team, Board of Directors, Board of Advisors, and Company Structure.
b. An organizational chart, which is often included in this section of the
business plan, is a graphic representation of how authority and
responsibility are distributed within the company.
9. Financial Analysis and Financial Projections.
a. The sections to include in this portion of the plan include:
Sources and Uses of Funds Statement, Pro Forma Income
Statements, Pro Forms Balance Sheets, Pro Forms Cash Flows, and
Ratio Analysis.
b. Ratio analysis—Most business plan writers interpret or make sense of a firm’s historical and/or pro forma financial statements through ratio
analysis. Ratios, such as return on assets (ROA) and return on sales
(ROS) are computed by taking numbers out of financial statements and forming ratios with them.
10. Appendix. Any material that does not easily fit into the body of a
business plan should appear in an appendix.