Tuesday, February 5, 2013

Business Plan part 3

4. Strategy
Describe where you plan for the business to operate i.e. where will you play?
•    Geographic location?
•    Customer niche or mass market?
Describe how you plan to win in this market i.e. how will you create unique and valuable position, involving a different set of activities
•    What is unique about the business i.e. how is the offering different from that of competitors?
•    What is the value for the customers? Describe the value proposition for the customer?

5. Business Model
Revenue sources
What are the sources of revenue for the business?
o    Single or multiple revenue streams?
o    Payment terms – upfront, over a period of time or post delivery?
Cost drivers
What are the cost drivers for the new business?
o    Major costs incurred to generate revenue?
o    Nature of costs – fixed, variable or semi-variable?
o    Payment terms – upfront, over a period of time or post delivery?
Capital investment
What size capital investment is required to launch and sustain the business?
o    To sustain a positive cash balance?
o    To make profit?
Critical success factors
What are the critical success factors for this business?
o    Identify the issues that will determine the success or failure of the business?
6. Team - Management and Organization
Who is behind this business? List the founders including their qualifications and experience.
Who will manage the business on a day-to-day basis? What experience does that person bring to the business? What special or distinctive competencies? Is there a plan for continuation of the business if this person is lost or incapacitated?
If you’ll have more than 10 employees, create an organizational chart showing the management hierarchy and who is responsible for key functions.
Include position descriptions for key employees. If you are seeking loans or investors, include resumes of owners and key employees.
Professional and Advisory Support
List the following:
•    Board of directors
•    Management advisory board
•    Attorney
•    Accountant
•    Insurance agent
•    Banker
•    Consultant or consultants
•    Mentors and key advisors


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