business simulation seminar business plans. what is a business plan? a structured document...
TRANSCRIPT
Business Simulation Seminar
Business Plans
What is a Business Plan?
A structured document describing the goals, plans, and expected outcomes for the company.
Practically – think about what you would give someone to convince them to loan you money
Business Plan Outline
1. Executive Summary2. Company Overview
1. Mission statement2. Objectives
3. Market Analysis1. Target markets2. Market size and growth
4. Strategy5. Products
1. Product plans by market segment2. Product differentiators
6. Marketing1. Marketing plans (marketing mix)2. Sales forecasts by product
7. Production Plans8. Finance
1. Current financials2. Planned financing3. Expected financials
9. Profiles of Key Executives
Executive Summary
Short summary of the rest of the plan Write this after you have written
everything else Should state:
What you will invest What you plan to do with the money What the outcome will be
This include specifics, including Market share Expected profits
Give numbers, not platitudes
Company Overview
Mission statement Objectives
What are the company’s objectives? What markets? What size market share? What profitability?
Market Analysis
What are the target market segments?
How big is each segment? How much is it growing each year? Who are the competitors?
Product Plans
For each target market segment: What products will you have in that
segment? When will you introduce them? What are the product characteristics?
E.g. size, performance, MTBF What will differentiate your products?
Marketing Plan
For each target segment, address: Product Price Promotion Distribution What is the sales forecast for each
product in the segment?
Production Plan
How much do you plan to produce each year?
What is the targeted plant capacity? Will you add or sell off capacity? How much inventory do you plan to
carry?
Finance
What are your current financials? What do key ratios say? What financing actions will you
take? Sell bonds or equity? Retire bonds or buy-back stock?
What do you expect your financials to look like in the future?
Profiles of Key Executives
Include these if going outside of the company for financing E.g. a start-up going to a bank or
Venture Capitalist Do not include for internal plans
Business Plans – Practical Notes
Remember – the plans should cover three years.
Use tables to present data Do not use “I”, use “we” or the name of
the company Do not use the words such as “a lot” or
similar. Give data.
You are trying to convince someone else that what you are doing is worth investing in.