Detailed explanation of elements of business plan

The business plan was not finished that day, because it is a process of continuous improvement, which is influenced by many external factors, such as economic environment and geographical influence. However, the general business plan will contain several major elements. In the next time, we will learn more about the business plan for entrepreneurs and help them on the financing road.

Summary

Summary is the first part of a business plan and the most important part of your business plan. As the name implies, this part is an introduction to the whole business plan, the company's history and an overview of the company's basic status. Summary is the frontispiece of business plan, so you should arouse investors' interest to continue reading in the summary. And you have to tell investors why you think your company will succeed. Although the outline is the beginning of a business plan, it is often completed at the end. Because when you have written the rest of the plan, you can better summarize it.

Specifically, the summary includes the following contents:

Mission statement: A mission statement is a brief summary of your company's business, which can be displayed in two words, two sentences or a paragraph, or even a picture.

company establishment time

introduction of founders and their job responsibilities

number of employees

business location and any branch or subsidiary

description of the company's equipment

description of the company's products or services

bank relations and information of existing investors

milestones of the company's development (for example, the company has doubled its growth in one year after its establishment or the company is an industry) The first company in China to provide a specific service)

If you just start a business, some of the above contents can't be presented to investors, then you should focus on your experience and professional background and show your determination to start a business. You can describe the problems and solutions in the target market and tell investors your innovations. Make sure that your business is what consumers need, and then describe your outlook for the company.

Maybe you will meet an investor who requires your summary to be presented in tabular form. At this time, the title of the content should be as broad as possible, in other words, the details should be avoided.

Market analysis is the second part of the business plan. In this part, you should describe the industry in which the company is located, and you should also show the results of the market survey, but the details about the market survey are attached to the business plan.

this part includes the following parts: industry overview, target market information, market survey results and evaluation of competitors.

industry overview

includes the description of the original industry, the current industrial scale and growth rate, industrial characteristics and trends, and the main consumer groups of the industry

Determining the market target

When determining the target market, the biggest problem is to control the market within a reasonable range. Many startups will make a mistake, that is, they think they can sell their products to everyone, and such target market positioning often fails.

market test

remember, you only need to write the test results into the business plan, so you only need to pay attention to the results. The details of the test are attached. Market testing includes potential customers, information and demonstrations for current customers, the importance of adapting to the needs of the target market, and the price at which the market will accept your products or services.

production preparation stage

the production preparation stage refers to the time period when a customer places an order and the order is completed, so when you investigate this part, you should specify the production preparation stage of your product or service.

competitor analysis

when doing competitor analysis, you need to determine the importance of your target market to your competitors according to product lines, market segments and evaluating your competitors' strengths and weaknesses, and also consider many factors that prevent you from entering the market.

make sure all your competitors correspond to all your products and services, know their market share, and estimate how long it will take for new competitors to enter the market.

competitors' competitive advantages are presented in various forms, but generally include the following points:

the ability to meet consumers' needs

a large market share, a high degree of awareness among consumers

a good work record and reputation

sound financial resources, abundant reserve resources

talents

The weakness of competitors is, in turn, the advantage of your company. Therefore, when entering a field, we should analyze the weaknesses of competitors, such as can they meet the needs of consumers? They don't have strong market penetration, their work records are not up to standard, their resources are limited, will they retain outstanding talents and so on. If you find the weakness of your competitors, you should find out the reasons for this weakness, so as to avoid the same mistakes.

If the competition in your target market is fierce, you should be prepared to overcome some obstacles, including:

high investment cost

time spent in establishing business

changing technology

lack of talents

customer resistance

existing patents and trademarks that you can't infringe

The company profile is the third part of the business plan, which also needs no detailed description.

when determining the nature of the company, you should list the market needs you need to meet, including the plan of how products and services can meet the needs of customers, and finally, find out the specific individuals or organizations that meet these needs.

and the success factors include the superior ability to meet the needs of customers, efficient methods to push out products and services, outstanding talents or the company being in the core area, and so on. All of the above are the competitive advantages of the company.

organization and management

organization and management is the fourth part of the business plan, which includes: the company's organizational structure, detailed knowledge of the company's ownership, the company's management team, the board of directors

Who is doing what, their background, the reasons for including them in the company's board of directors or being called employees, and what their personality is. It seems that these problems are completely unnecessary for a company with only one or two people, but investors want to know who is in the project they want to invest in.

Organization

A simple and effective way to work out the structure of your company is to draw an organization chart with narrative description. Once the organization structure is determined, there is no room for change, so you should think clearly about who is doing what and who is in charge of all departments in the company. Nothing is neglected and nothing has been done three or four times, which is very important for investors.

Ownership information includes the legal structure of the company and the subsequent ownership involved. Have you merged the company? If it has been merged, is your company a C company or an S company? Maybe you have formed a partnership with which company. If so, is the partner a general relationship or a responsible shareholder? Maybe your company is a joint venture, and

the important ownership information that should be included in your business plan includes:

the name of the owner

the proportion of the owner

the degree of participation in corporate affairs

the form of corporate ownership, that is, the outstanding equity equivalents of common shares, preferred shares, general partners and limited liability shareholders

. For example, options, warrants, convertible debt

Common stock

Management overview

Experts agree that the ability of the company's management team and its performance record are important factors for the company's success. So let investors know the core figures of your company and their background. Provide a team resume that includes the following information:

name

position

main responsibilities and authority

education level

expertise

past records

corporate recognition

social practice

working hours

salary

which should focus on quantitative achievements. Such as manage a 1-person sales team, manage a 15-person department, increasing the annual income by 15% in the first half of the year, expanding two sales outlets every year, and raising the customer's service rating from 6% to 9%.

Also emphasize how the abilities of the people around you complement each other. If you are just starting a business, emphasize the role that everyone's expertise plays in the success of the company.

Board of Directors

The main benefit of a free advisory committee is that it can provide you with expert advice for free. A list of board members with famous and successful people in the industry can improve the company's reputation and perceived management experience.

if your company has a board of directors, you need to write the following information in the business plan:

names of board members

positions on the board of directors

participation in company affairs

background

contribution to the company

Marketing and sales management are the fifth part of the business plan. Sales is the process of creating customers, and customers are the life of the company. First of all, you should determine the marketing strategy. There are many ways to formulate the marketing strategy, among which the marketing strategy is a part of your ongoing business, evaluation process and company characteristics. But there are also basic steps, and following these can help you develop strategies to promote sales and maintain customer loyalty.

a complete marketing strategy should include four parts:

market penetration strategy

development strategy: this part includes internal strategies, such as how to increase your human resources; Acquisition strategy is to acquire another company; Franchising strategy of branches; The horizontal strategy is to provide similar products to different customers; Vertical strategy refers to the distribution chain strategy that provides the same product but for different levels

distribution channel strategy: the selection of distribution channels should include original equipment manufacturers, internal sales teams, distributors and retailers.

communication strategy: how do you plan to let consumers know about your products? Usually, the following strategies are the most effective: promotion, advertising, public relations, personal promotion and some leaflets.

after you have worked out a set of marketing plans, it's time for you to make a sales strategy, which can help you sell your products.

the sales strategy includes the following two important parts:

the sales staff strategy: if you plan to form a sales team, do you plan to choose internally or recruit independent sales representatives? The number of sales team, what recruitment strategy will you use? How to train your sales team?

sales activities: the established sales plan should be integrated into the existing activities. First of all, you need to identify potential customers and present them in table form, in order of priority. Secondly, determine the number of sales calls in a certain period of time, as well as the average number of calls per business and the average cost of each sale.

The service or product line is the sixth part of the business plan. In this part, describe your product or service and emphasize the benefits of potential customers and existing customers. For example, if you open a restaurant, don't tell your investors how many dishes your restaurant has, but tell them why your restaurant is so busy. Professionals prefer to shop in stores that record customers' preferences.

Choose industries where you have obvious advantages, know the problems in your target market and the solutions provided by your products or services, and convince your investors which consumers will pay for your solutions. List your company's services and products and make a marketing plan. Provide information about suppliers, availability and price of products. And explain the new product information.

this part should include:

a detailed description of the product or service, including the characteristics of the product or service, how the product can meet the needs of customers, the advantages of the product compared with competitors and the development stage of the product.

describe the product life cycle and any factors that affect the product life cycle.

copyright, patent and trade secret information: this part should include documents related to copyright and patent, as well as the characteristics of products that have not yet obtained copyright or patent. Finally, any related information should be added to existing legal agreements, such as confidentiality agreements or non-competitive agreements.

research and development activities ((r&; D)): This part includes any activities related to new product development, and you should write down your comments on (r&; D) expectations.

the financing demand is the seventh part of the business plan. In this part, you should explain how much money is needed to start or expand your business. If necessary, you should also explain several different financing situations, such as the best and worst cases. But remember, you need to provide corresponding support for the financing department, such as financing statements.

specifically, the financing demand should include the following contents: the current financing demand, the financing demand in the next five years, the use of funds, and any long-term financial strategy that affects your financing. When you summarize the current and future financing needs, be sure to state the amount of funds, the duration of each financing, the type of funds you need and the terms you apply.

for investors, how do you use the funds you have raised is very important, for capital expenditure (expenditure on the purchase, increase, improvement or life extension of fixed assets) or working capital or debt repayment or acquisition? All these should be listed in this part.

Finally, be sure to list any strategic information that will affect your future financial situation, such as your company's listing, debt acquisition, debt repayment plan, and whether you intend to sell the company in the near future. These strategic information are very important to your investors, because they have a direct impact on your company's debt repayment ability.

the appendix is the last part of the business plan. This part of the content should not be placed in the main part of the business plan, because your plan is a communication tool, then many people will see your plan. But there are some contents that you don't want everyone to see, but for special envoys like investors, you need these contents as the basis for your decision. So the appendix is also an important part of the business plan.

the appendix should include the following contents:

credit records, including resumes of

key figures of individuals and companies

product pictures

market research details

relevant magazine articles and bibliography <