Business Plan Requirements:
1. Describe the Stage of the company.
2. What is the technology and/or service?
(a) Platform Technology (b) Improvement (c) Hybrid
3. Business Concept.
The business concept and business model identifies the market potential within the industry and outlines the specific action plans for the coming year. Point by Point.
Description of the Industry This section will contain: Industry outlook and growth potential (industry trends, new products and developments. State your sources of information) Markets and customers (size of total market, new requirements and market trends) Competitive companies (market share, strengths and weaknesses, profitability) Industry and Economic trends (consumer trends, relevant economic indicators, technology indicators, Internet indicators etc.)
4. Description of Business Venture. This section will contain:
Product(s) or service (pictures,
drawings, characteristics, quality) Product protection/exclusive rights
(patents, copyrights, trade marks) Target market (typical customers
identified by groups, present buying patterns and average purchase in
dollars, wants and needs) Competitive advantage of the business and
technology concept (your market niche, uniqueness, estimated market
5. Business Goals. This section will contain:
One year (specific goals, R&D
goals, design goals, financing plans, roll out plans if possible introducing
new product strategies, etc.)
Overview in brief.
7. Product Design Plans.
Specific descriptions of products. Critical design plans, drawings, flowcharts and specifications. Performance improvements and uniqueness. Patent Descriptions and Plans and Costs
Customer's Use of the Product. Describe how the customer will use the product and the benefit that they will obtain from it. It is important to understand the "whole product concept" that the customer requires - what products and services will the customer require to make effective use of the products? Where will these ancillary products be obtained? Describe the cost/benefit analysis that the customer will undertake that will cause him to conclude that they should purchase the product and/or service. What is the total cost of the "whole product" to the customer? What is the pay back period for the purchase? What post-delivery support will the customer expect?
8. Marketing Plan. This section will contain:
Sales strategy and Revenue Models (agents, sales objectives, target customers, sales tools, sales support etc) Distribution Channels overview (direct to public, wholesale, retail, Electronic Commerce) Pricing (costing, mark-ups, margins, break-even analysis) Promotion (media advertising, promotions, publicity-appropriate to reach target market). Support Services. How do you intend to reach the customer. Licensing Strategy etc.
9. Sales Forecast. This section will contain:
Assumptions (one never has all
the necessary information, so state all the assumptions made in developing
the forecast) Monthly forecast for coming year (sales volume in units
and dollars) Annual forecast for following 2-4 years (sales volume in
dollars and units). The sales forecast is the starting point for your
projected income statement and cash flow forecast. Sources of Revenue
Production Plan and Operations
Overview. This section will contain:
11. Corporate Structure. This section will contain:
Legal form (corporation) Share distribution (list of principal shareholders) List of contracts and agreements in force (management contract, shareholder or partnership agreement. Directors and officers (names and addresses and role in company) Background of key management personnel (brief resumes of active owners and key contractors and employees). Contract professionals/consultants (possible outside assistance in specialized or deficient areas). Organization chart (identify reporting relationships) Duties and responsibilities of key personnel (brief job descriptions--who is responsible for what?).
12. Risk Assessment This section will contain:
Competitors' reaction (will competitors try to squeeze you out?). What if . . . list of critical external factors (identify effects of new technology, new competition, supplier problems, shifts in demand, replacement problems, barriers to entry). Dealing with risks (contingency plan to handle the most significant risks, strategy goals) How will you maintain capital into the company in the early stages.
13. Action Plans. This section will contain:
Steps to accomplish this year's
goals (flow chart by month or by quarter of specific actions to be taken
and by whom, engineering, financing, alliances etc). Checkpoints for
measuring results (identify significant dates, milestones and critical
decision points). The implementation plan should identify the near term
milestones that the company needs to achieve. These may relate to product
development, engineering, sales, hiring or any other key aspect of the
development of the company. These milestones should serve as guideposts
to track the company's success in implementing its plan. The identification
of key milestones also serves to highlight to the reader of the business
plan the items you believe have the highest priority.
Describe the milestone briefly.
Identify anything that must be completed to allow the milestone to be
achieved. Estimate the date when the milestone will be reached. Use
charts. You may wish to group the milestones by business function -
marketing, production, research and development, key hires and finance.
Where is the money and other required resources going to come from? Angels Investors, Government R&D, Venture Funds etc. Describe the financial plan and "Use of Funds". This outlines the level of present financing and identifies the financing sought and use of funds. This section should be kept concise with supporting material supplied only when requested. The Financial Plan contains pro-forma financial forecasts. In carrying out the action plan for the coming year, these operating forecasts are your guides to business survival and profitability. Before presenting the Business Plan to an investor, review and have the financial statements with your accountant. This familiarity will increase your credibility and at the same time provide you with a good understanding of what the financial statements reveal about the viability of the business.
15. ROI Return on Investment for Investors
The costs include the writing of the prospectus by securities lawyers, audit and accounting fees, listing fees charged by the Exchange, printing costs, travel expenses, due diligence fees, assessment and valuation reports. The underwriters commission, usually the most expensive component, which is often between 6% to 10% of the total proceeds raised. As well as the costs, strategies and plans of maintaining and building the retail market need to be planned and described.
16. Financial Statements
Cash flow statement for at least 24 months is required for a startup.
17. References. This section will contain:
Name of present lending institution (branch, type of accounts) Lawyer's name (include address and phone number) Accountant's name (include address and phone number)
Resumes, articles etc Copies of legal agreements (contracts, technology transfers agreements, benchtests and asessment reports) Appraisals, technical studies, financial statements for associated companies (where appropriate).
Business Plans and Information Mapping Services:
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Designing a Culture:
After we complete your business
plan with your team. We can also help you develop and design your organizational
culture. It is the culture of the company or association that becomes
magnetic to your partners. When your first employee comes on board that
is the moment the culture begins. Various techniques and concerns should
be covered, including design of the physical space, hiring practices,
subcontractor and contractor policies, and things the entrepreneur can
do to shape the culture as the organization grows. Its hard to find
the people you need to build your knowledge based company or non profit
society its harder to replace a good employee if he or she leaves because
the culture is just not working.