Business Plans 101

A viable opportunity exists when you have the following:

1. Intimate knowledge of the Industry
2. You meet an unfulfilled need
3. You can execute a viable business in the industry

All of these points are important but I beleive the most important is having a detailed knowledge of the industry. Studies show that those who have already worked in the industry are far more successful than those who enter the industry cold.

Here is a list and description of what your business plan should contain. This is only a guide and should be used to best fit your idea.

1. Cover Page: Name of Business, Name of Founders, Contact Information, and Date of Plan.

2. Table of Contents: Includes major and sub-sections with page numbers.

3. Executive Summary: This is 1-3 pages in length and includes a brief description of the business, management plan, marketing plan and financial plan including sales and profit projections.

4. Business Description: Includes the Mission/Vision/Values, products/services, competitive advantage and legal structure.

5. Industry Analysis: Health of Industry, Barriers to entry or exit, Power of Buyers and Suppliers, Complementary/Substitute products, major competitors, current trends, impact of technology, and key factors for industry success.

6. Management Plan: Members of the mgmt team, structure of organization, procurement of materials, production/assembly, distribution and customer service strategy.

7. Marketing Plan: Market segments, target customers, product distribution, sales strategies and pricing position.

8. Financial Plan: Financing the venture, projected financial statements, cash flow analysis and break-even analysis.

9. Financial Summary: Timing of financing(milestones), projection of financials for 3 to 5 years, past financial history if any and ROI expectations.

10. Implementation Plan: Major objectives for the first year and specific actions for how they will be achieved.