Outline for Business Plan

Outline for Business Plan

BUS 326

Part 1: Company and Feasibility (Industry, Competitive, Target and Market)

Company Background

• Name of the firm
• When and where is the business to be started (city and state)?
• What is the corporate legal structure? 
• What are the firm’s objectives?
• What is the problem you are trying to solve?
• Describe the niche in which the business will be participating
• What is the mission and vision?
• Growth stage of the firm—for example, seed stage or full product line?
• What is the firm’s competitive advantage or distinctive competence – how will you compete (price, product, etc., see chapter 2). Provide rationale.
• Who are the key members and what skills and experiences does each member of the team bring to the business?

Feasibility Analysis

Industry, Competition, Target and Market

Industry and Competition

• Comprehensive description of the broader industry in which the business will be competing, including industry size, growth rates, fundamental trends, growing, mature, in decline,  and major players, nearest and major competitors, sales and profits of your competitors (3 year view), growth potential, market share – what % does each competitor hold of the marketplace (pie charts works well here), number of customers. Use data, charts and tables
• Geographic locations
• Trends and barriers
• Identify the different segments of the industry
• Strengths and Weaknesses of Competitors
• PEST and SWOT analysis for your product relative to competitors
• Provide the context of the opportunity and demonstrate that a market segment is being underserved and what makes your product better/more attractive in the market place

Target Market and Market

• Primary target market
• Secondary TM
• Describe both above using:
  • Demographics
  • Psychographics
  • Behavioral (purchase)
  • Other target market segment variables (regionality, seasonality, attitudes, etc.)
• How will you segment the market?
• Write a description of your customer in story form (describe a day in the life of your customer to bring them to life)
• Current buying behavior (how many do they buy, how often?
• What price are they paying per unit (or range of prices)
• Will the target prefer my product vs. alternatives?
• What market segments will you target and why? (rationalize with data and facts)
• What is the market potential for your product in terms of annual customers based on the customer data you uncovered in the competitive analysis and based on your research into your target markets? (we will build sales estimates later once costs and pricing is determined)

Tools:

SWOT Link:

https://www.strategicmanagementinsight.com/tools/swot-analysis-how-to-do-it.html

PEST Link:

https://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html

Part 2 – Marketing – 4 P’s

Product

• What is the product you are offering?
• What is your initial product mix?

Place (Distribution)

• Distribution objectives (be specific using SMART Goals)
• Draw channel Flow
• Direct or indirect?
• Who are your channel partners in the chain?
• What is the timing sequence of each channel partner (draw a timeline and provide a description of channel roles by partner and timing
• What target market(s) are served by each channel partner

Price

• What is your pricing objective and why? (Be specific/SMART)
• What pricing strategy will you use and why? (Cost/Competitive/Customer/Strategy)
• What specific pricing tactics will you use to launch your product – by target market and channel? Why?
• What is your product pricing and outline your price and tactics for 1-3 pricing tactics from introduction to year three.

Promotion

• How will you position the product? (use the 5 box tool) Must be strong rationale based on your research
• What is your positioning statement?
• How will you be positioned vs. key competitors?
• Who are your primary and secondary target market(s) you plan to reach with promotions?
• What are your promotion objectives? (SMART)
• Outline the promotion mix and provide rationale for each element? (Advertising mix, consumer and trade promotion, sales)
• If you plan to have sales as a part of the mix, detail how this will work –what is your specific plan of action for sales?
• Build a flow chart showing timing for each stage of your communication objectives and strategies (Awareness/Interest/Desire/Action) AIDA
• Budget breakdown by promotion mix elements

Part 3 Production, Operations, Organization, Management, Human Resources, and Financial Statements

Production and Operations

• Where will you locate and why?
• Who will your partners be?
• Produce, outsource or combination – describe how this will work in as much detail as possible
• Production schedule/flow chart

Organization, Management and Human Resources

• Describe your organization – roles and titles, include an org chart
• Outline for the first three years what you expect your human resources needs to be and why – be sure to detail people needs in terms of types of roles and will you hire internal, external or both – explain rationale.

Financial Statements and Funding

• Capital requirements – how much funding do you need and why?
• Capital structure: what are the sources of the funding?
• 3 year cash flow projection
• P&L  3 year forecast with your best guesses
• Break even

Metrics

• How will you measure progress for each of the key areas, make go/no go decisions and use learning to improve?
• What metrics will you use?
• Balance Scorecard approach? Other? Describe

Appendices

• Business Plan Canvas