Business Plan Outline

Cover Page

            In addition to the words "Business Plan", your cover page should clearly identify who you are, your company name and how you can be contacted. Consider making it stand out by using images of your product/service in action.

Your Cover Page should include the following:

•          Your name

•          Company name

•          Address

•          Telephone number

•          Date prepared

•          School and teachers name

It might also include:

•          E-mail address

•          Company logo

•          Picture of product or service in action

Table of Contents

            A reader may often use the table of contents to skip to the part of your plan they are most interested in. Therefore your table of contents should clearly outline the main sections and subsections of your plan. Wait until your business plan is complete to add page numbers. The cover page, table of contents, and executive summary do not have page numbers. Start numbering your plan with the Management page as page 1, and put page numbers in the upper right hand corner).

Executive Summary

            The executive summary is the most important part of your business plan, it's the last section you'll write and is the first one you will read. (See details at end of outline)

The Management

            A business is only as strong as the people who breathe life into it. A Businesses management team and staff can be the difference between a successful business and one that fails. Therefore, it is important to include a section in your business plan that outlines the skills that you possess and how these skills will help bring your product or service to market. No matter how large or small your business, good management is key to its success.

The Management section of your business plan should include:

•          A profile of the management - what experience and abilities do you have that will make you successful at running this business. Do you have a particular talent or skill that will be using to start your business? You can attach your resume in the appendix.

Marketing Plan (a subsection of your business plan)

            The Marketing Plan section of your business plan should include everything you do to get your customers and your product or service together so they can purchase it.

Target Market

            In creating a profile of our target market we will try and answer the question "What are the people like that will be most interested in buying my product". To run a successful business you need to have a very good idea of precisely who will be buying your product and why. If you do not know these two things, how will you know if they will want what you have to sell, and whether or not they will buy it? Start by creating a profile of who your typical customer would be.

•          Where do your customers live?

•          What is their demographic make-up? Age range, education, gender, income, family

•          What do your customer have in common as far as interests, hobbies and lifestyle are concerned.

•          What motivates them to buy you particular product or service? (Do they need it, want it or does it just make them feel good? What's most important to these customers when buying a product or service like yours? Is it price, quality, convenience, level of service or something else?

•          Are there any trends or fads that might make your customers want your product or service? (Is it something popular or fashionable - the must have thing of the moment)

•          How are these customers currently filling their need for your product or service? What makes your product or service special or different enough to convince them to choose you over the competition?

•          How many people are out there that fit this description? (statistics will be provided by host school of the Marketplace)

Competition

            In this section you will answer the question "If they don't buy it from you where else can they buy it?" Describe who your competitors are by addressing the following:

•          Identify your competitors by business name.

•          Describe what the competing business offers your target market.

•          Compare their product or service to yours in terms of quality, price, service, image, special features etc.

•          Describe your competitor's strengths and weaknesses.

•          Explain what you will do better than them.

            Be sure to describe your direct competition, but don't forget to mention your indirect competition. Your indirect competitors are the businesses that sell a product that is not exactly the same as yours but could be used as an alternative by your customer. For example, if you want to open an ice cream store, your competition will not only be other ice cream shops, but also the candy store down the street that offers an alternative to satisfying your customer's sweet tooth. Or maybe it's the grocery store that sells 2L tubs of ice cream.

Services/Products

            In describing your product you want to answer the questions "What are you selling and what are the "fringe benefits" of buying what you are selling?" Your description should focus on what makes your product or service unique. It is important to describe both the features and the benefits of your product or service. Features are descriptive, physical attributes of your product such as the colour, weight, etc. The benefits describe what good things the customer will enjoy by using your product or service (e.g. save time, save money, feel better etc.).

Your Services/Products section should cover the following:

•          What is the one thing, above all else, that makes your product or service unique? (what is the MOST appealing thing about your product or service to your target market)

•          What other features does your product or services have (fringe benefits)? Consider packaging, quality, price, service, etc.

•          What benefits will your customers enjoy by buying your product or service? Will they save money, feel better, be smarter, be "cooler" and in style, satisfy their hunger or thirst?

Pricing Strategy

            Here you must answer the question "What is the amount you will charge customers for your product or service and how did you figure it out. "

An important part of your pricing strategy is determining how you will price your product or service. The secret here is to establish a reasonable price for your customers that will enable you to make a fair profit. Before you set a base price, you have to look at your own objectives and costs, what competitors are charging for similar products and what your customers are willing to pay.

The Pricing Strategy section should cover the following:

•          What price will you charge for your product or service and how did you arrive at this figure?

•          How are similar products and services priced? Explain how the price of your product or service will compete with market prices. If your price is higher, why would a customer choose your product? Do you offer superior service or a higher quality product? If your price is lower, how are you able to charge less - is the quality different, is your production process more efficient, can you sell in large volumes?

•          What do your costs include? How much does it cost to produce one of your products or provide one service to one customer.

•          What kind of a return are you looking for in your investment and how soon are you anticipating being able to repay your loan?

Use the Pricing Strategy worksheet from your teacher to help you determine the right Price for your Product or Service and to answer the questions above ( include in appendix).

Place/ Location

            This is where you answer the questions "Where will your customer be able to purchase your product? What are your facilities like?" This section should detail how the exchange between you and your customer will take place. It should include a discussion about where you plan on selling your product or service and a description of those facilities.

This section will require the following information:

•          A description of the location (size, parking, atmosphere)

•          Provide pictures or drawings where possible

•          An explanation of why this location is a good one

•          Listing of any costs associated with the location

•          How can customers pay for your product? Describe your return policy, service guarantees and/or any warranties you intend to offer customers.

•          What after-sales support will you offer? Will you charge for this service?

Advertising and Promotions

            Your Advertising and Promotions Plan must detail how you are going to communicate to your customers. There are many ways your business may communicate including advertising, public relations, brochures, posters, etc. If possible, include an example or mock-up of your communications pieces. ( For a helping hand see your handout "Hints for Advertising and Promotions")

Your Advertising and Promotions Plan should cover the following:

•          Describe how and where you will be advertising the Marketplace as a class. Include what medium you will use (television, print, radio, posters in the school etc). How much will this cost? How much business do you anticipate this will bring in to the market?

•          Describe what plans you have to generate press for your business. What type of media will you target as a class? Will you be issuing a press release?

•          What kind of marketing material will you produce to advertise your own business and your product or service? This may include brochures, posters, business cards, etc.

•          Provide examples of your advertising materials as an appendix.

Operational Plan (a subsection of your business plan)

            Your plan needs to address the day-to-day running of your business and your production process. You need to answer the question "How it's made?". If your idea is still at an early stage, completing this section of the plan will help you to list the steps required to develop your product or service. Or, if you have already made some progress toward developing your product or service, this section of your business plan will help you to create a checklist of tasks that still need to be done.

Production Process

            Regardless of your type of business, you need to walk through the process of creating your product or delivering your service to the customer. This part of your business plan allows you to show that you have an understanding of the process of manufacturing your product or delivering your service.

Your Production Process section should cover the following:

•          What are the basic facility requirements for your business? Do you need special amenities such as power, refrigeration, chairs for customers etc.

•          When will you start producing your product or service? How long does it take to produce one product or a certain number of products. If you are providing a service how long will it take to perform your service for one customer?

•          Where will you get the materials to produce your product/service? How much do they cost? Provide a list of all materials needed for your business.

•          Outline in point form the step-by-step manufacturing process for your product.

•          What will you do if the demand for your goods or services is not what you expected at the Market? Do you have a backup plan?

•          Have you conducted feasibility testing on your product (basically this is a trial run producing your product by making a prototype to find out if it will work)

•          Have you tested your prototype on customers or conducted surveys with potential customers about your product and its proposed price?

Financial Plan (a subsection of your business plan)

Sales Projection

            It is important to know how many of your products you will be able to sell or how may services you will reasonably be able to provide during the Market. You need to estimate the number of products you expect to sell during the market and at what price you will sell them. Multiply these two figures together and you will have your estimated sales for that day.

Appendix

            The appendix is where you can stash all of the supporting documents for your business including diagrams, charts, surveys, resumes, logos, ads etc. Remember to reference them in your business plan (ie. See appendix number whatever, whatever) and include them all in your table of contents.

Executive Summary

            The executive summary is the most important part of your business plan. It is so important that it gets its OWN PAGE in the business plan. It is where you grab the attention of the reader by summarizing the highlights of your business plan in a few short paragraphs. It's the last section you'll write and the first one read. It serves as both an introduction to your plan and a wrap-up of your key findings, insights, and strategies. Briefly state what the business is about and describe why your product or service will be successful. Don't assume people will read your plan cover-to-cover. It is a good idea not to write the executive summary until your entire plan is finished - that way you can select the most important information to be included in your summary.

Your Executive Summary should cover the following:

•          Describe your business idea. Whether it's a retail or service business, the customers you will serve (target market), and your competitive advantage (what makes your product or service special and different).

•          How will you make your product or service stand out from your competitors?

•          Who is involved in the venture? Briefly summarize your experience and credentials.

•          How much money are you seeking and for what purpose? (If applying for a loan) Summarize your projected financial performance (how much do you plan to sell?)