Confidential
Company Name Business Plan
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Confidentiality
This business plan is the property of the Company and is considered to be strictly
confidential. It contains information intended only for the person to whom it is
transmitted. With receipt of this plan, recipient acknowledges and agrees that: i) in the
event recipient does not wish to pursue this matter, this document will be returned, at
the address listed above as soon as possible; ii) the recipient will not copy, fax,
reproduce, divulge, or distribute this confidential plan, in whole or in part, without the
expressed written consent of the Company; iii) all of the information herein will be
treated as confidential material with no less care than that afforded to your own
company confidential material.
This Business Plan contains forward-looking statements which involve risks and
uncertainties. The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of certain factors, including
those set forth under "Risk Factors" and elsewhere in this Business Plan.
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Company Name Business Plan
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Table of Contents
EXECUTIVE
SUMMARY ..................................................................................................... (3)
MISSION
STATEMENT ................................................................................................. . (4)
INDUSTRY AND MARKETPLACE
ANALYSIS (5)
DIM (5)
ESCRIPTION OF THE NDUSTRY AND ARKET
CMS (5)
USTOMERS AND ARKET EGMENTATION
C ....................................................................................................................... .. (5)
OMPETITION
TBO (6)
HE USINESS PPORTUNITY
THE INNOVATION – PRODUCT OR SERVICE
DESCRIPTION (7)
OP (7)
VERVIEW OF THE RODUCT OR SERVICE
PB ..................................................................................................................... (7)
RODUCT ENEFITS
T ....................................................................................................................... .. (7)
ECHNOLOGY
PC ..................................................................................................................... (7)
RODUCT OMPARISON
FPR (7)
UTURE RODUCT OADMAP
THE BUSINESS
STRATEGY .................................................................................................... . (8)
TBS .................................................................................................................. (8)
HE USINESS TRATEGY
MDB (8)
ETHODS OF OING USINESS
FO .................................................................................................................... (8)
UTURE PPORTUNITIES
MARKETING AND
SALES ............................................................................................................. . (9)
MR ................................................................................................................... .. (9)
ARKET ESEARCH
MP .................................................................................................................... . (9)
ARKETING LAN
TM ................................................................................................................... . (9)
ARGET ARKETS
RESEARCH AND
DEVELOPMENT ........................................................................................... .. (10)
OPERATION /
MANUFACTURING ..................................................................................... .. (11)
MANAGEMENT AND
OWNERSHIP ...............................................................................................
12
FUNDS REQUIRED AND THEIR
USES (13)
FINANCES...................................................................................................... .. (14)
A ....................................................................................................................... .. (14)
SSUMPTIONS
SF ..................................................................................................................... .. (14)
ALES ORECAST
OE .................................................................................................................... . (14)
PERATING XPENSES
P&L ................................................................................................................. . (14)
ROFIT OSS
CF ..................................................................................................................... .. (14)
ASH LOW
NPVBEP .......................................................................................................... .. 14
AND REAK VEN OINT BIBLIOGRAPHY (15)
APPENDICES ................................................................................................ .. (15)
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Executive Summary
(2-3 pages)
The purpose of this section is to provide a short introduction to the company and
clearly define the unique competencies of the company, which will ensure its success.
This section should include the following:
of establishment,
financial and marketing achievements etc.
y of the Innovation.
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Mission Statement
(1-3 page)
The purpose of this section is to provide the mission and vision of the company.
This section should include:
background (if relevant) including date of establishment,
financial and marketing achievements, etc.
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Company Name Business Plan
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Industry and Marketplace Analysis (4-6 pages)
The purpose of this section is to provide the investor with background on the industry
and its growth potential.
Description of the Industry and Market
This section should include the following:
Description of the industry
Industry size today (in $ and or units), Forecasted industry size in 3-5 years
What are the major drivers for growth? For example, are products
becoming more affordable, easier-to-use, faster, greater performance? Is there
increased awareness about the industry that might be driving growth? Is
positive user experience driving growth?
What trends are emerging in the industry? For example, are there standards
in the industry? Are there new technologies coming out? Are big companies
becoming interested in the industry? Is there a tendency towards
consolidation? Where is the market heading?
ustry’s value chain (a diagram is recommended) Customers and Market Segmentation
How is the market segmented? By price, application, etc.? What is the size,
the growth rate and the needs of the targeted market segment?
Who are your immediate customers, who are the end users?
Competition
The purpose of this section is to present factors that influence competition in your
industry, to present who your main competitors (or competitors’ groups) are a nd your
strengths / weaknesses vis-a-vis each competitor (or group).
What are the crucial competitive factors in your industry? Price, reliability,
compliance with standards, installed base, time-to-market, technological
innovation, availability of customer support?
competitors’ groups? Provide a short description of each
group, the differentiating aspects of their products, corporate resources, market
positioning, etc. Who are their customers? Include a summary table that
compares the competing solutions and your proposed solution.
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The Business Opportunity
The purpose of this section is to explain the market need for the product / service.
The idea is to show what is lacking in the industry and the business benefits that will
be gained by resolving these issues. Note that these issues should correspond with the
problems that your new product will resolve.
This section should include the following:
segment?
ndustry is facing (that the new innovation
responds to)? For example, are products unreliable, highly fallible,
incompatible, require long training periods, provide poor performance,
expensive, not broadly available?
results for users if these challenges are overcome?
For example, greater productivity, lower costs, shorter time-to-market
terms? For example,
costs will be cut by $x, productivity will be increased by x%.
benefits? Who is
hurting the most from the fact that the industry has not yet overcome the
challenges described above? Who will be willing to pay for the improved
business benefits?
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Company Name Business Plan
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The Innovation – Product or Service Description
(3 – 5 pages)
The purpose of this section is to present the new product or service and show how it
will overcome the challenges presented above. Overview of the Product or Service
What is the new product / service which the company is proposing?
What stage of development is it in?
What is the quantum leap that makes your solution superior
Product Benefits
What are the benefits of the new product / service to the different markets?
How does it resolve the challenges described above?
Who will reap these benefits?
Technology
On which technology is the product/service based? Is this technology unique?
How central is the technology to the product? What is its expected life cycle and
future generations? Is it patented? Are there substitute technologies?
Product Comparison
Conduct a comparative analysis of your product and resources vs. the competing
solutions. This should include comparison of track record and reputation, market
penetration, technological capabilities, strengths and weaknesses of each product,
target markets, ability to meet customer requirements, feature comparison, price
comparison, etc. (presenting in a table is recommended)
Future Product Roadmap
What is the future product roadmap? What additional products might the
company develop in the future?
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The Business Strategy
(3-5 pages)
The Business Strategy
SWOT analysis
Porter's Model - 5 competitive Forces
You should discuss your competitive advantage, how is it achieved, what
are the resources that you have or willing to develop in order to achieve
sustainable competitive advantage.
What will the company sell and to whom? How is it going to make money?
Which stages of the value-added chain does the firm occupy? Who are its
suppliers, who are its immediate customers, what marketing channels does the
firm use? How does the production, marketing and after-sales servicing?
How do you chose your gereic strategy? How is the firm going to position
itself in the industry: niche player, differentiator or cost leader?
Methods of Doing Business
What are the revenue streams?
Future Opportunities
What are the plans for the future? Market expansions, new products, new
directions.
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Marketing and Sales
(4-5 pages)
The purpose of this section is to define the marketing strategy: the specific market
segments the company will be operating in and how the company will penetrate those
segments.
Market Research
What are the main results of the market research?
What are the conclusions derived from the market research results?
Marketing Plan
Marketing mix – 4Ps. How will the company achieve its sales / market
share goals? What are the distribution channels? What will be the pricing
policy? What advertising / PR activities will be required? What is the
advertising and PR budget and its allocation to the media channels?
Target Markets
Have potential customers in each market segment been contacted? What
feedback has been received from potential customers in each target market
segment? Any signed agreements?
Which markets will the company focus on first and why?
What are the market share goals for the company –short term and long
term?
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Company Name Business Plan
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Research and Development
(2-3 pages)
The purpose of this section is to present a detailed plan of the R&D program
including milestones and a description of the time and resources required to achieve
those milestones.
This section should include:
development at: alpha,
beta, stage I-IV?
until it is ready for
commercial use? Following is a sample Gantt chart for this purpose:
Milestones Q1 Q2 Q3 Q4 Q5 Q6
Detailed Design Regulatory tests
Integration
Testing + Debug
Alpha Site
Beta Site
1st Shipments
– equipment and manpower? How much
will it cost? This can also be provided in graph form.
rt program work? What kind of support is
needed?
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Operation / Manufacturing
(2-3 pages)
The purpose of this section is to present the company’s manufacturing capabilities.
This section should include the following:
– What parts of the production process are
performed in-house? What parts are produced by subcontractors?
requirements? What is the
risk of critical element shortages?
ies
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Company Name Business Plan
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Management and Ownership
(2-3 pages)
The purpose of this section is to provide a profile of the company’s core management
team and its owners.
This section should include:
e o
f each of the key managers
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Funds Required and Their Uses
(1-2 pages)
The purpose of this section is to describe to investors how their investment funds will
be spent and how much additional funding will be required and when.
This section should include:
– amount, when
-5 years
– capital expenditures, working capital, debt retirement,
acquisitions
investors’ positions) –
going public, leveraged buyout, acquisition by another company
This can be provided in table form as follows:
Funding Sources $ Uses of Funds $
Shareholder’s equity Capital expenditures
Loans Working capital
Credit
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Finances
(3-4 pages)
The resolution of the financial documents should be on monthly basis for the first year,
quarterly basis for the second year, and annual basis for the next 3 years.
Assumptions
Sales Forecast
An example of forecasted sales:
What are the sales Year 1 Year 2 Year 3 Year 4 Year 5 goals for the company
– short term and long
term?
Target Market 1
# of units
$ per unit
Total $
Target Market 2
# of units
$ per unit
Total $
Target Market 3
# of units
$ per unit
Total $
Total $
Operating Expenses
Profit & Loss
Cash Flow
NPV , Break Even Point, Return On Investment _____________________________________________________________ _____________
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Bibliography
(1-3 pages)
Appendices
The appendices are where you collect the documents that support the body of the
business plan.
Detailed Finanacial Statements:
Financial assumptions
Profit & Loss Statement
Balance Sheet
Cash Flow
st
Monthly Cash Flow for the 1 year
Break-even analysis
Detailed development timeline
Detailed operations layout
Risk Factors
Market Research – Questionnaire, Methodology, Sample description,
and Results
Reports of the meetings with the supervisor Proposal Submission
Outline Submission
Intermedite Report Submission
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