Transcript Tips for Writing a Business Plan

Business Plan Writing
-Derek Safko-
Business Plan Components
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Executive Summary
Company Description
Products
Industry Analysis & Trends
Target Market
Competition
Marketing Plan
Management & Organization
Development, Milestones & Exit Plan
Financials
Appendices
Executive Summary
• Written last
• Summarizes your entire plan
• No more than two pages
• Be clear, be concise
• Assume readers will only read this
• Make them want to read more!
Company Description
• Break into the details of your business:
• Company Objectives/Mission Statement
• Legal Issues (partners, patents, etc.)
• Leadership
• Milestones
Products
• Describe your products
• Costs and pricing
• Breakdown the margin
• Support your numbers!
• Benefits & advantages over the competition
• Projected volume
• Future product development
Industry Analysis & Trends
• Size & Growth
• Economic Sensitivity
• Seasonality
• Regulations/Certifications
• Supply & Distribution Channels
Target Market
• Market Size & Trends
• Demographics
• Psychographics
• Purchasing Patterns
• Buying Sensitivities
• Know your customers!!
Competition
• Do you really know your competition?
• Don’t downplay your competition!
• Competitive Positioning & Differentiation
• Global Competition
• Future Competition & Barriers to Entry
Marketing Plan
• Marketing Strategy
• How will you reach your customers?
• Sales Structure
• How will you sell your product?
Management & Organization
• Your people determine your success
• Board of Directors/Advisory Committee
• Key Employees
• Compensation
Development, Milestones, & Exit Plan
• Development to date
• Show off what you’ve done!
• Future Milestones
• Have a game plan
• Exit Plan
• Investors want to see this!
Financials
• Revenue Forecast
• Loans / Investments Sought
• Detailed use of funds
• Income Statement (monthly & 5-year)
• Balance Sheet (1st year & 5-year)
• Cash Flow Statement (monthly & 5-year)
Financials
•Know your numbers!
• Know your numbers!
• Know your numbers!
Appendix
• Anything non-essential, but supportive to your plan
• Product Packaging
• Location Maps/Details
• Technical Information
• Not used in total page count
• Not required
Things To Remember
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Business plans come in many formats
Viability is key
Clear definition of problem with clear solution
Avoid generalizations. Support statements with facts
Write in 3rd person
Be confident! “If” vs “when”, “hope” vs “will”
Be realistic
The more eyes, the better
Have two pitch formats
Recommended Resources
• Simmons OneView
• Consumer profiles, brand preferences, shopping habits, lifestyles, etc.
• Use the tutorial
• 1 User ON CAMPUS Access
• IBISWorld
• Detailed industry information (market characteristics, current/future performance,
competitive landscape, etc.)
• $925 per report!
• Access using your CU Denver Login
• Successful Business Plan –Rhonda Abrams
• $23.99 on Amazon
Recommended Resources
Questions?