Business Plans Formal Proposals

Dr. James Freeman Dr. Nancy Freeman

Business Plans Formal Proposals

Outline
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Executive Summary General Company Description The Opportunity The Industry Business Concept Market Research & Analysis Finance & Economics Risks & Assumptions Management Team Summary

The Executive Summary

This is a 2 page (maximum) section that summarizes all of the other sections. Some readers read only the Executive Summary, and some read the Executive Summary to decide whether to read the rest of the plan.

Executive Summary
Usually this is written last. Cover what you would if you had a five minute interview. Explain the Fundamentals of the Proposed Project. What is the Product or how is a current Product enhanced. What is the Future of this Product? Be Professional, Complete, Concise.

General Company/Department Description

Mission Statement What is the reason for this company to exist? Business Philosophy What is important to you in this business? Describe your most important core strengths and competencies. This is the opportunity to showcase your technical and business skillset

The Opportunity
What is the Product or Service?
Product or Service Description History of Successful ventures Need for the Product/Service Proposed Enhancements How does your Core Strength relate to the product or service? Do you outsource for the capabilities outside of your Core Strengths?

The Opportunity
Why is this now an Opportunity? What is the business concept that will address this need or take advantage of the opportunity? Is the market large and growing? Or is it a small niche market but you expect it to grow?

The Industry
Whats the nature/degree of competition in the industry? Who are the main competitors? How will the company differentiate itself from the competition?

The Industry
Facts about the Industry
What is the total size? What percent share do you expect? Trends in the industry? Any unique aspects? Who are the Customers?

Business Concept
Clearly explain the proposed product or service (the solution to the problem). What are its unique features? Its merits? Its limitations? Is it realistic and viable? To what extent is the product or service a compelling purchase for the customer?

Market Research & Analysis

Who is the new ventures customer? Where are customers located? How does the customer make decisions about buying this product or service? Is this a Niche Market?

Marketing Plan
Do you already know about your intended market? How? Primary Marketing Research involves conducting your own surveys, focus groups etc. Secondary Marketing Research involves using published data. How will the product/service be priced? How will the product/service be distributed, delivered, and sold?

Marketing Plan
How will the product/service be priced? How will the product/service be distributed, delivered, and sold? Be specific, give statistics, sources etc.

Marketing Plan
Product You described your Product and/or service as you see them. Now Describe them from the customers point of view.

Marketing Plan
Features and Benefits
List your major products and/or services. Describe the most important features. What is special about them? Describe the benefits. You build features into the product in order to sell the benefits.

Operational Plan
How and where the Product or Service be Produced? What is the number and Skillset of Employees? Give examples of your past technical achievements.

Finance & Economics

How much money will the venture require? What are the sources of the finance? How/When will the venture make money?

Risks & Assumptions

The Plan MUST confront the risk ahead what if ? Are Components Single-Sourced? Are you dependent upon a new Technology?

Management Team
How will the team contribute to the success of the business? (In terms of their background and skills).

Management Team
Who will manage the Project on a Day-to-day basis. What Experience does this person have? What special competencies? Is there an Organization Chart?

Summary

In one paragraph tell me what you just told me.