1、Page 1 of 22Business plan for a new businessThe business plan consists of a narrative and several financial worksheets. The narrative template is the key to the business plan. It contains more than 150 questions divided into several sections. Omit any questions that do not apply to your type of busi
2、ness. When you have finished writing your first draft, you will have a collection of small essays on the various aspects of the business plan. The next stage is to edit them into a smooth-flowing narrative.The real value of creating a business plan is not in having the finished plan in your hand; ra
3、ther, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but will help avoid co
4、stly, perhaps disastrous, mistakes later.This business plan is a specific model suitable for high-tech businesses. Before you begin, look at the 1st section Tailoring the plan. It has tips for fine-tuning your plan to make an effective presentation to investors. If this is why youre creating your pl
5、an, pay particular attention to your writing style. You will be judged by the quality and appearance of your work as well as by your ideas.It typically takes several weeks to complete a good plan. Most of that time is spent in researching and revising your ideas and assumptions. But this is the valu
6、e of the process. So make time to do the job properly. Those who do so never regret the effort. And finally, be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data.Tailoring the planThe generic business plan presented should be modified to
7、 suit your specific type of business and the audience for which the plan is written.For raising capitalFor investorsInvestors have a different perspective. They are looking for dramatic growth, and they expect to share in the rewards:o Funds needed short-termPage 2 of 22o Funds needed in two to five
8、 years timeo How the company will use the funds, and what this will accomplish for growtho Estimated return on investmento Exit strategy for investors (buyback, sale or IPO)o Proportion of ownership that you will give up to investorso Milestones or conditions that you will accepto Financial reportin
9、g to be providedo Involvement of investors on the board or in managementFor type of businessHigh-tech companiesEconomic outlook for the industryWill the company have information systems in place to manage rapidly changing prices, costs and markets?Will you be on the cutting edge with your products a
10、nd services?What is the status of research and development? And what is required to:o Bring product/service to market?o Keep the company competitive?How does the company:o Protect intellectual property?o Avoid technological obsolescence?o Supply necessary capital?o Retain key personnel?High-tech com
11、panies sometimes have to operate for a long time without profits and sometimes even without sales. If this fits your situation, a banker probably will not want to lend to you. Venture capitalists may invest, but your case must be very good. You must do longer-term financial forecasts to show when pr
12、ofit take-off is expected to occur. And your assumptions must be well documented and well argued.Page 3 of 22Business planOWNERSYour Business NameDateE-MailWebpagePage 4 of 22Table of contents1. Executive summary .62. Introduction to the Company and its Management .72.1 Company Overview .72.2 Organi
13、sational Structure .72.3 The Management Team 72.4 Advisory Board 72.5 Proposed Management Compensation.72.6 Headcount Forecast 73. Products and Services Description.83.1 Products and Technologies Introduction 83.2 Detailed Development Plan.83.2.1 Product Roadmaps.83.2.2 Development Stages 83.3 Futur
14、e Applications .84. Marketing Analysis94.1 Market Trend 94.2 Market Segmentation .104.3 Market Gap (Unique Selling Point)104.4 Competitive Analysis .105. Business Model .125.1 Core Competence125.2 SWOT Analysis.125.3 Marketing Plan 125.4 Sales Forecast145.4.1 Realistic Scenario .155.4.2 Optimistic S
15、cenario 155.4.3 Pessimistic Scenario.156. Risk Analysis and Management .166.1 Technical Risk 166.1.1 Technology Safety166.1.2 Product Quality 166.1.3 Delay 16Page 5 of 226.2 Competition Risk .166.3 Management of Growth176.4 Market Risk177. Financial Plan 187.1 Summary of Assumptions187.1.1 Revenue .
16、187.1.2 Direct Variable Costs187.1.3 Fixed Asset Investment 187.1.4 Human Resources 187.1.5 Services Rendered by 3rd Party 187.1.6 Infrastructure and Operational Costs 187.1.7 Marketing.187.1.8 Tax187.2 Break-Even Position 187.3 Projected profits197.4 Investment and Return .197.5 Financial Statement
17、s .198. Business Feasibility and Impact in the UK and China209. References 2110. Appendices .22Page 6 of 221. Executive summaryWrite this section last.We suggest that you make it no more than two pages long.Include everything that you would cover in a five-minute interview.Explain the fundamentals o
18、f the proposed business: What will your product be? Who will your customers be? Who are the owners? What do you think the future holds for your business and your industry?Make it enthusiastic, professional, complete and concise.If proposing for an investment, state clearly how much you want, precise
19、ly how you are going to use it, and how the money will make your business more profitable, thereby ensuring repayment.Paragraph headings can be used if they identify the purpose of each paragraph. (example below)Company and Management (Team)Product/Service Description Market AnalysisCompany Strategy
20、 Risk Analysis Financial Plan Investment Proposition Page 7 of 222. Introduction to the Company and its Management2.1 Company OverviewWhat business will you be in? What will you do?Mission Statement: Many companies have a brief mission statement, usually in 30 words or fewer, explaining their reason
21、 for being and their guiding principles. If you want to draft a mission statement, this is a good place to put it in the plan.2.2 Organisational StructureIf youll have more than 10 employees, create an organizational chart showing the management hierarchy and who is responsible for key functions.Inc
22、lude position descriptions for key employees. If you are seeking loans or investors, include resumes of owners and key employees.2.3 The Management TeamWho will manage the business on a day-to-day basis? What experience does that person bring to the business? What special or distinctive competencies
23、? Is there a plan for continuation of the business if this person is lost or incapacitated?2.4 Advisory BoardList members of management advisory board and their short resume/CV.2.5 Proposed Management CompensationIf the management team are willing to reduce their compensation in the first year of bu
24、siness2.6 Headcount ForecastNumber of employees of each departments and the total in the next 5 years. (tables preferred)Page 8 of 223. Products and Services Description3.1 Products and Technologies Introduction Describe in depth your products or services (technical specifications, drawings, photos,
25、 sales brochures and other bulky items belong in the Appendices).What factors will give you competitive advantages or disadvantages? Examples include level of quality or unique or proprietary features.What are the cost, fee or commission structures of your products or services?Dont forget to include
26、 the current Patent Status.3.2 Detailed Development Plan3.2.1 Product RoadmapsList and describe product type and service of all categories, what they do, when they are available, and the timeline of design, prototype, sample promotion etc. (tables and figures are encouraged)3.2.2 Development StagesW
27、rite down the stages used to measure the stepping successes (deliverables, milestones) of the whole company according to the development plan.3.3 Future ApplicationsList and describe potential applications.Page 9 of 224. Marketing AnalysisNo matter how good your products and services are, the ventur
28、e cannot succeed without effective marketing. This begins with careful and systematic research. It is very dangerous to assume that you already know about your intended market. You need to do market research to make sure you are on track. Use the business planning process as your opportunity to unco
29、ver data and to question your marketing efforts. Your time will be well spent.There are two kinds of market research: primary and secondary.Secondary research means using published information such as industry profiles, trade journals, newspapers, magazines, census data, and demographic profiles. Th
30、is type of information is available in public libraries, industry associations, chambers of commerce, from vendors who sell to your industry, and from government agencies.Primary research means gathering your own data. For example, you could do your own traffic count at a proposed location, use the
31、yellow pages to identify competitors, and do surveys or focus-group interviews to learn about consumer preferences. Professional market research can be very costly, but there are many books that show small business owners how to do effective research themselves.In your marketing plan, be as specific
32、 as possible; give statistics, numbers, and sources. The marketing plan will be the basis, later on, of the all-important sales projection.4.1 Market TrendDescribe your industry. Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be
33、poised to take advantage of them?Facts about your industry:What is the total size of your market?What percent share of the market will you have? (This is important only if you think you will be a major factor in the market.)Current demand in target market.Trends in target marketgrowth trends, trends
34、 in consumer preferences, and trends in product development.Page 10 of 224.2 Market SegmentationShow the understanding of the market segments (sizes, volume growth, revenue growth)4.3 Market Gap (Unique Selling Point)Analyze the current market and identify and explain that there might be a gap, a we
35、ak/missing segment of the market for your particular product. And describe growth potential and opportunity for a business of your type and size.4.4 Competitive AnalysisWhat products and companies will compete with you? List your major competitors:Will they compete with you across the board, or just
36、 for certain products and customers or in certain locations? Will you have important indirect competitors? (For example, video rental stores compete with cinemas, although they are different types of businesses.)How will your products or services compare with the competition?You can use the Competit
37、ive analysis table below to compare your company with your two most important competitors. The first column lists key competitive factors. Since these vary from one industry to another, you may want to customize the list of factors.In the column labeled Me, state honestly how you think you will be p
38、erceived in customers minds. Then check whether you think this factor will be a strength or a weakness for you. Sometimes it is hard to analyse our own weaknesses. Try to be very clear here. Better yet, get somebody else to assess you. This can be a real eye-opener. And remember that you cannot be a
39、ll things to all people. In fact, trying to be causes many business failures because their efforts become scattered and diluted. You want an honest assessment of your firms strong and weak points.Now analyse each major competitor. In a few words, state how you think they compare with you. In the fin
40、al column, estimate the importance of each competitive factor to the customer. 1 = critical; 5 = not very important.Table 1: Competitive analysisPage 11 of 22FACTOR Me Strength Weakness Competitor A Competitor B Importance to customerProductsPriceQualitySelectionServiceReliabilityStabilityExpertiseC
41、ompany reputationLocationAppearanceSales methodCredit policiesAdvertisingImageNow, write a short paragraph stating your competitive advantages and disadvantages.Page 12 of 225. Business ModelHow will you develop your company, through alliance and co-development or ?List and explain them step by step
42、.5.1 Core CompetenceDescribe your most important company strengths and core competencies. What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?5.2 SWOT Ana
43、lysisStrength: Cost, size, energy saving, eco-friendly, robustness, future developmentWeakness: Immature, suppliersOpportunities: Political Opportunities, market opportunities, co-operation opportunities.Threats: Competitors, Intellect Property, supplier chain.5.3 Marketing PlanNow outline a marketi
44、ng strategy that is consistent with your niche.Marketing strategies according to the 4P theories, namely Product, Price, Promotion and Place. (The 5th P People is the whole reason for the services industry to be doing very well OR even for improving the service experience in a Product industry is be
45、cause they all target People.)Product StrategyList all of your major products or services.For each product or service:Page 13 of 22Describe the most important features. What is special about it?Describe the benefits. That is, what will the product do for the customer?Note the difference between feat
46、ures and benefits, and think about them. For example, a house that gives shelter and lasts a long time is made with certain materials and to a certain design; those are its features. Its benefits include pride of ownership, financial security, providing for the family, and inclusion in a neighborhoo
47、d. You build features into your product so that you can sell the benefits.What after-sale services will you give? Some examples are delivery, warranty, service contracts, support, follow-up, and refund policy.PricingExplain your method or methods of setting prices. For most small businesses, having
48、the lowest price is not a good policy. It robs you of needed profit margin; customers may not care as much about price as you think; and large competitors can under price you anyway. Usually you will do better to have average prices and compete on quality and service. Does your pricing strategy fit
49、with what was revealed in your competitive analysis?Compare your prices with those of the competition. Are they higher, lower, the same? Why?How important is price as a competitive factor? Do your intended customers really make their purchase decisions mostly on price?What will be your customer service and credit policies?PromotionHow will you get the word out to customers?Advertising: What media, why, and how often? Why this mix and not some other?Have you identified low-cost methods to get the most out of your promotional budget?Will you use methods other than paid advertising,
