For a good business plan prior research and understanding of the product of service is vital without which entering into it would be highly risky. According to Timmons Model of the Entrepreneurial Process, an entrepreneur has to be able to balance the intricacy of three aspects which are opportunity, resources and team. These are further supported in their structure of refinement and balancing act by leadership, creativity and communication (Spinelli Jr. & Adams, 2012). "The business plan must reflect the unique nature of your business venture (M2 Presswire, 2005).”
Thus, as Timmons has pointed out, every business plan should address these three aspects which may come in various designs and types but hold the same goal. "The business plan must reflect the unique nature of your business venture (M2 Presswire, 2005).”
In my business plan I would place importance on the following aspects
1. Executive Summary - Understanding the Why
The executive summary like the abstract in a journal is very important as investors are busy. The first part or the executive summary must be attractive enough to hook them and make them interested. It needs to have the concept of the business, what is the opportunity and strategy used to achieve it. The target market should be specific and your business value proposition that differentiates it from the competitors.
2. The Industry and the company and its product
How the industry or market for the product/service is at the moment. How the market is segmented and catering to the need that your product/service is targeting to meet. It should answer the entry and growth strategy for the product.
3. Market Research and Analysis
I probably would do this first as this is by far one of the most important factors in a business plan. Every one has idea but to understand if there is a market for it, how consumers are addressing this need with what product in the market, price in the market, substitute product, competitor strategies can be understood. Voice of the customer can also be introduced in this research with direct interviews with the customers which can help ascertain the niche market that will have greater demand for the product and where you can meet these market consumers easily and in quantity. Doing this first will show you if what you see as an idea and opportunity actually is something that the consumers also want addressed.
4. Economics of the business
The ROI or Return on Investment should be clear. The time line for the return you expect for the initial amount of investment that you are doing is critical. This will not only make it clearer for the entrepreneur on how much it costs but also target benchmark for how much to sale and within which time it will bring profit.
5. Marketing plan
For an initial start up the growth stage is very important. Target customers need to know that the product is available and it fulfil their certain need. Understanding the market customers segment and where there are available dictates the marketing plan. For example if your business targets the younger crowd then you will have to include you marketing plan in social sites such as Facebook, Twitter, and Instagram. If catering to the older generation then national/daily newspapers, televisions, radio stations with their targeted older audiences would be better. Schemes, pricing strategy could be used to increase sales. These should be done in detail.
This also should include sales target and projection, detailed and overall marketing strategy stressing on the competitive advantages.
6. Design and development plans
The idea needs to be converted into a business viable product or service. The designing may take time to finalize with validation process until you get a prototype that works. This may require resources, expertise, and time. These aspects of time and resources required to take the idea through the journey into a final prototype needs to be recorded in detail.
7. Manufacturing and Operation plan
If it’s a manufacturing business then location for operation is important. Location determines the transport cost, labour cost, availability for access for raw material transport and transport of finished goods. Regulatory issues and compliances of government should also be reviewed.
8. Management Team
A part of Timmons model talks about the team management. It is important to have good relation in a team. Everyone should be on-board and should have a specific pre allotted responsibility and rules for understanding their roles. Open sharing and acceptance of suggestions should be done. The expertise that every group holds should be cleared up. Management remuneration, stock option, BOD, advisors and hired experts needs to be stated with their roles and remuneration.
9. Sustainability and impact
Impact on the environment, customers and society needs to be understood. CSR should be addressed if there are any ethical issues.
10. Critical Risk, Problems and assumptions
SWOT should also be done of the business to understand any risk, problems and major assumption that have been done in the planning.
11. Financial plan
The financial plan of how much to invest from equity and debt should be understood. Estimated cash flow, potential breakeven time frame, pro-forma income statement should be conducted.
12. Proposed company offerings
Desired financing that you expect what the value proposition that you give to the investor should be clear. Investor must know what your projected return is and how much you need the financing for. Equity proposition should be done with clear and concise intro in.
These are a brief indicator of what should be addressed in a business plan. All of these parts are interrelated and so cannot be excluded. If all these checklist are ticked before starting a business, there are higher changes of success.
References
M2 Presswire. (2005, March 22). Research and Markets: Research and Markets : The Essential Guide to Business Plan Writing for Life Sciences Industry. M2 Presswire; Coventry .
Spinelli Jr., S., & Adams, R. (2012). New Venture Creation, ENTREPRENEURSHIP FOR THE 21st CENTURY. New York: McGraw-Hill.
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For a good business plan prior research and understanding of the product of service is vital without which entering into it would be highly risky. According to Timmons Model of the Entrepreneurial Process, an entrepreneur has to be able to balance the intricacy of three aspects which are opportunity, resources and team. These are further supported in their structure of refinement and balancing act by leadership, creativity and communication (Spinelli Jr. & Adams, 2012). "The business plan must reflect the unique nature of your business venture (M2 Presswire, 2005).”
Thus, as Timmons has pointed out, every business plan should address these three aspects which may come in various designs and types but hold the same goal. "The business plan must reflect the unique nature of your business venture (M2 Presswire, 2005).”
In my business plan I would place importance on the following aspects
1. Executive Summary - Understanding the Why
The executive summary like the abstract in a journal is very important as investors are busy. The first part or the executive summary must be attractive enough to hook them and make them interested. It needs to have the concept of the business, what is the opportunity and strategy used to achieve it. The target market should be specific and your business value proposition that differentiates it from the competitors.
2. The Industry and the company and its product
How the industry or market for the product/service is at the moment. How the market is segmented and catering to the need that your product/service is targeting to meet. It should answer the entry and growth strategy for the product.
3. Market Research and Analysis
I probably would do this first as this is by far one of the most important factors in a business plan. Every one has idea but to understand if there is a market for it, how consumers are addressing this need with what product in the market, price in the market, substitute product, competitor strategies can be understood. Voice of the customer can also be introduced in this research with direct interviews with the customers which can help ascertain the niche market that will have greater demand for the product and where you can meet these market consumers easily and in quantity. Doing this first will show you if what you see as an idea and opportunity actually is something that the consumers also want addressed.
4. Economics of the business
The ROI or Return on Investment should be clear. The time line for the return you expect for the initial amount of investment that you are doing is critical. This will not only make it clearer for the entrepreneur on how much it costs but also target benchmark for how much to sale and within which time it will bring profit.
5. Marketing plan
For an initial start up the growth stage is very important. Target customers need to know that the product is available and it fulfil their certain need. Understanding the market customers segment and where there are available dictates the marketing plan. For example if your business targets the younger crowd then you will have to include you marketing plan in social sites such as Facebook, Twitter, and Instagram. If catering to the older generation then national/daily newspapers, televisions, radio stations with their targeted older audiences would be better. Schemes, pricing strategy could be used to increase sales. These should be done in detail.
This also should include sales target and projection, detailed and overall marketing strategy stressing on the competitive advantages.
6. Design and development plans
The idea needs to be converted into a business viable product or service. The designing may take time to finalize with validation process until you get a prototype that works. This may require resources, expertise, and time. These aspects of time and resources required to take the idea through the journey into a final prototype needs to be recorded in detail.
7. Manufacturing and Operation plan
If it’s a manufacturing business then location for operation is important. Location determines the transport cost, labour cost, availability for access for raw material transport and transport of finished goods. Regulatory issues and compliances of government should also be reviewed.
8. Management Team
A part of Timmons model talks about the team management. It is important to have good relation in a team. Everyone should be on-board and should have a specific pre allotted responsibility and rules for understanding their roles. Open sharing and acceptance of suggestions should be done. The expertise that every group holds should be cleared up. Management remuneration, stock option, BOD, advisors and hired experts needs to be stated with their roles and remuneration.
9. Sustainability and impact
Impact on the environment, customers and society needs to be understood. CSR should be addressed if there are any ethical issues.
10. Critical Risk, Problems and assumptions
SWOT should also be done of the business to understand any risk, problems and major assumption that have been done in the planning.
11. Financial plan
The financial plan of how much to invest from equity and debt should be understood. Estimated cash flow, potential breakeven time frame, pro-forma income statement should be conducted.
12. Proposed company offerings
Desired financing that you expect what the value proposition that you give to the investor should be clear. Investor must know what your projected return is and how much you need the financing for. Equity proposition should be done with clear and concise intro in.
These are a brief indicator of what should be addressed in a business plan. All of these parts are interrelated and so cannot be excluded. If all these checklist are ticked before starting a business, there are higher changes of success.
References
M2 Presswire. (2005, March 22). Research and Markets: Research and Markets : The Essential Guide to Business Plan Writing for Life Sciences Industry. M2 Presswire; Coventry .
Spinelli Jr., S., & Adams, R. (2012). New Venture Creation, ENTREPRENEURSHIP FOR THE 21st CENTURY. New York: McGraw-Hill.