Business Planning Guide: Seven Questions That Need To Be Answered About Any New Business
Business Planning Guide: Seven Questions That Need To Be Answered About Any New Business
The following Model contains key, seemingly simple questions, which are the forerunners to the development of a formalized Business Plan.
10. Do you have the experience and education to be successful at doing this? What experiences/skills are needed to complement what you have?
PRICING PLAN
-Pricing Strategy -Product Price Points defined, Price Lists (Volume Discounts Plan) by Channel -Product Pricing Competitive Comparisons -Promotional Incentives -Return Policy and Costs
Answers to these questions feed into a 20-25 page Business Plan, organized as follows:
1.0 Executive Summary (generally prepared last) 1.1 Business Concept 1.2 Current Situation 1.3 Key Success Factors 1.4 Vision 1.5 Objectives / Milestones 2.0 Company Summary 2.1 Company Structure (C-Corp, S-Corp, LLC, etc.) and Ownership 2.2 Company History (for ongoing companies) or Startup Plan (for new companies). 2.3 Company Locations and Facilities (actual and/or planned) 3.0 Products and Services 3.1 Product/Service Description 3.2 Product/Service Positioning 3.3 Competitive Analysis 3.3.1 Industry Overview 3.3.2 Primary Competitors 3.3.3 Comparison of Offerings 3.3.4 Opportunities 3.3.5 Threats and Risks 3.4 Sales Literature 3.5 Sourcing and Fulfillment 3.6 Technology 3.7 Future Products and Services 4.0 Market Analysis Summary 4.1 Market Segmentation 4.2 Target Market Segment Strategy 4.2.1 Market Needs (Drivers) 4.2.2 Market Trends 4.2.3 Market Growth 4.3 Industry Analysis 4.3.1 Industry Participants 4.3.2 Competition and Buying Patterns 4.3.3 Main Competitors
5.0 Strategy and Implementation Summary 5.1 Strategy Pyramid (Strategy-Tactics-Programs) 5.2 Value Proposition 5.3 Competitive Edge 5.4 Marketing Strategy 5.4.1 Positioning Statements 5.4.2 Pricing Strategy 5.4.3 Promotion Strategy 5.4.4 Distribution & Logistics 5.4.5 Marketing Programs 5.5 Sales Strategy 5.5.1 Sales Forecast 5.5.2 Sales Tactics 5.5.3 Advertising & Promotion 5.6 Strategic Alliances 5.7 Milestones 6.0 Operations 6.1 Organizational Structure 6.2 Management Team / Key Personnel 6.3 Management Team Gaps 6.4 Personnel Plan 6.4.1 Product/Service Delivery 6.4.2 Customer Service/Support 7.0 Financial Plan (developed in an Excel Spreadsheet) 7.1 Important Assumptions (Driving Market, Product and G&A Cost Forecasts) 7.2 Sales Projection (Revenue and Costs by year) 7.3 Income Statement 7.3.1 Projected Profit and Loss 7.3.2 Break-even Analysis 7.4 Balance Sheet 7.5 Projected Cash Flow 7.6 Funding Requirements / Use of Proceeds 7.7 Ratios 7.8 Long-term Plan (10 year projection) 7.9 Analyses supporting Company Valuation