It should include the following: * Mission Statement ;k History behind the idea or current business * Company’s current or proposed legal form ;k Proposed entry strategy and time line of events Description of the initial product}service (including any anticipated competitive advantage) ;k Product research and development Section 3 – Market Analyses The main Objective Of this section is to convince the reader that an explosive market opportunity exists, and that the entrepreneur understands it well enough to capture a share large enough to support the new venture.
The entrepreneur can do this by addressing the following areas: * Description of the industry * Targeted markets * Marketing research ;k Competition * Barriers to entry Section 4 – The Management Team The strength Of the management team plays a key role in investors’ and lenders’ decision to fund a venture. The objective of this section is to convince the reader that the entrepreneur has a management team that can effectively manage the product/service into the market place and make the venture a success.
The key areas to cover are: * Background and primary responsibilities Of the management team * Organizational structure * Board of directors/advisors * Ownership Section S. Operations This section should provide an overview of the strategy for implementing the cuisines plan. The objective here is for the entrepreneur to demonstrate that he/ she has an understanding of how the plan will he implemented. Also, this section will help the entrepreneur focus on relevant costs associated with implementing the plan.
The entrepreneur must remember to incorporate the assumptions made in this section into the assumptions in the financial section of the business plan. Depending on the type of business, the entrepreneur should address the following key areas: k Marketing Strategy * production Plan ;k Personnel * Customer Support k Future research and development plans Section 6 – Critical Risks In this section the entrepreneur should identify potential problems that could have a significant adverse affect on the new company.
By disclosing such possibilities, the entrepreneur is letting the reader know up-front that there are risks associated With the venture. Such an approach Will contribute to a heightened respect on the part of the reader for the entrepreneur. The following areas should be covered: * External Risks * Internal Risks * Insurance Provisions * Contingency Plan Section 7 – The Financial Projections The purposes of the financial section of the plan is to convince the reader that the venture makes sense from a financial standpoint.
The entrepreneur must be able to translate the idea into a plausible set of financial projections which address procurement, allocation, return on investment, and cash management. The financial section should include actual performance data for at least the preceding 3 to 5 years. If the company has no operating history, then this section will deal only with financial projections, Poor existing and new companies, this section will include the following: ;k Estimated Cost Estimated Revenue Section 8 – Appendix The purpose of the appendix is to provide additional documentation that supports the business plan.
This section gives potential investors the option of looking at more detailed information if they so desire. At a minimum you should make sure that you include in the appendix all information referenced in the plan. The following is a list Of items that should be included: * Questionnaires used to collect data as part of your marketing assumptions.
