Business Model & Related Planning

Business plans can take a variety of forms.   This is a hybrid approach, with an outline of the critical elements, including business modeling.   We recommend the SBA link www.sba.gov for more business plan ideas.   Here is the Durango (SW Colo) SBDC link:  http://sbdcfortlewis.org  And you can subscribe to Live Plan, as an option: http://www.liveplan.com and here is the link to the Business Model Canvas: http://www.businessmodelgeneration.com 

 

Executive Summary:  2 to 3 page overview of the Business Plan (write this part last)

              >Description of the Business Model & How your Business works (the electronic Business Model Canvas can supplement this description).

              >What is your Competitive Set?   What else (Substitutes?) and Who else (Competitors?)

              >What is your Value Proposition?    Why is your product or service unique? 

              >Your target markets and customer segments?   How do you provide gains?  Solve pains?  For your customers?

              >Brief Financial Overview plus your Investment or Loan Proposal

 

Mission Statement: Concise overview of the overriding mission.

              >Stand alone statement of business purpose.  Why are you in business?  How are your customers helped and how will they benefit from your Value Proposition?

 

 

Operations Plan:  How the business works and operates  (Key Activities, Resources, Partners).

              >What business (Product or Service) are you in?  What is the Competitive Set?  What else (Substitutes)?  Who else (Your Competitors)?  

              >Your Key Activities (what you do), Key Resources (what you need?), Key Partners?

              >Break-Even Analysis and Operating Cost Analysis

              >What is your Value Proposition?  Unique Selling (Marketing) Position?

              >Facilities, production capacity, equipment & technology  (Resources?)

              >Fixed, Variable and Semi-Variable Cost Analysis

 

 

Business Model Canvas: Full-size or electronic version of BMC (Can you model it?)

              >Comprehensive Business Model Canvas, supported by the Value Proposition Canvas

 

Marketing & Promotion Plan:  Once the product is made or the service  is ready to perform, how is it priced, promoted and delivered to customer?

              >Analysis of the Competition: who are they and how do you position and market?

              >Target Markets and Analysis of Customers Segments (Create gains?  Solve pains?)

              >Market Research and Demographic Study of your marketplace (Business Databases)

              >Marketing & Promotion:  Strategies & Implementation Plan (including Social Media

              >Distribution and/or Delivery of Product/Service to Customers (Channels)

              >Pricing, Terms of Sale, Transaction Policies

              >Marketing Budgeting & Market Research Methods

              >Sales department organization and Sales staffing plan

 

 

Management & Personnel Plan: Who is operating, managing, selling  and planning for your company?   How are going to run the Company?

              >Resumes of "key" owners & managers

              >Personnel policies and job descriptions

              >Personnel development & assessment instruments

              >Compensation plans for "key" employees & owners

              >Organizational structure and managerial duties, including sales management

              >Regulations, payroll tax requirements, employment law, non-competes

              >Credit policies and internal cash controls

 

 

Current Financial Position: Up to date financial statements.

              >Current year-end Profit/Loss Statement & Balance Sheet

              >Tax Returns on Business (or personal, if start up) for past 3 years

             

Sales Projections and Forecast: Historical & projected sales analysis (see Excel template)

              >Estimated Sales Forecasting methods and projections

              >Pro Forma Profit & Loss Statements

              >Pro Forma Balance Sheets 

 

Cash Flow Statements & Projections:  Cash flow spreadsheets & forecasts.

              >Time line for positive cash flow from operations

              >Ability to service debt requirements from operating cash flow

              >Monthly cash management and reporting methods

              >Performa (projected) Cash Flow Statements

 

Summary of Loan or Investment Proposal:

              >One page summary of loan or investment proposal, including details

                 of what loan proceeds will accomplish, collateral & term considerations.

 

 

Appendixes:  Some of the following may be included in Business Plan.

              >Brochures, bulletins, and product/service information (paper or PDF)

              >Real property appraisal and/or equipment listing (PDF or Excel)

              >Accounts payable & accounts receivable (QB or Excel)

              >Supplier & customer lists (confidential information)

              >Building or space lease terms & conditions  (PDF or copy)

              >Personal financial statements (bank will likely require these for loan)

              >Copyrights, patents or trademarks held by you and /or company

 

Need more info?  Contact your local SBDC professional staff.  In Durango, CO call the Durango-based SBDC office (970) 247-7009.    On the web: http://sbdcfortlewis.org

 

Notes: