Business Plan and Logic
It is the outline of the business plan (BP)! If the first impression captures the investor, you are half the battle. The ultimate goal of BP is to convince investors, so within the scope of the outline, orderly presenting your ideas is what you must do well. Therefore, when you start to write BP, you must have an outline in your heart. I hope you can read it line by line. Therefore, this kind of thinking mode is very helpful for entrepreneurship.
Summary For Effective Business Plans
One sentence explains the origin of the idea. (Entry point) One sentence explains the needs of the market. (Market prospects) In
one sentence, explain what needs you provide. (Product) One sentence shows who else provides these needs. (Competitor) In
one sentence, what is better than what you provide? (Advantage) One sentence explains how you make this “strong”. (R&D) One
sentence explains how you can make up for “strong” to “need”. (Market operation) In one sentence, explain how much you can make for the needs you make up. (Profit model) In one sentence, explain how much you earn and what you want us to provide. (Return) Let me introduce you in one sentence. Finally, (Team advantage), the thinking logic summarized above, the main text is carried out under this thinking framework.
Tips for Writing a Business Plan
If you haven’t registered a company yet, replace it with a “team”, and then use the idea of ”company” to prepare your own plan. In the copy of the idea I shared, part of it can be deleted as needed.
Text requirements: No two sentences can be completed in one sentence.
1. Basic information in Business Plan
What is the company’s name.
Where is the company.
What is the nature of the company?
In addition, who are the company shareholders.
What is the holding structure?
What is the company’s main business.
How is the composition of the company’s employees?
How about the company’s finances.
Furthermore, what are the company’s short-term and long-term goals?
2. Company Management in Business Plan
What are the top levels.
How to divide the work of the senior management.
What is the management system.
In addition, what institutions should be established after financing and related staffing.
The incentives which management and key personnel adopt?
The salary of the management, whether there is an employee stock ownership plan.
Whether the company has established a personnel management system.
Measures taken to protect relevant intellectual property, technical secrets and business secrets.
Whether the company has associated operations.
In addition, whether the company and its key management personnel are involved in legal litigation and arbitration, and how does it affect the company?
3. Industry situation in Business Plan
What is the market outlook. In addition, who is using the product.
The purpose of use, why buy.
List the top three customer types of the product and their purchasing power.
The investment product industry is currently in the development stage.
Whether you own the expertise, copyright, patent, formula, etc.
Also, product comparison with similar products.
The novelty, advancement and uniqueness of our products.
Focus on the advantages in performance, price, after-sales service and technical support.
Furthermore, comparison of the company with five major competitors in the industry.
Factors affecting industry and product development.
The industry-wide sales in the past 3 to 5 years, and the data sources are listed.
Industry-wide sales revenue forecasts for the next 3 to 5 years, with data sources listed.
The company’s sales revenue forecast for the next 3~5 years (in the case of unsuccessful financing and in the case of successful financing)
Fourth, product development
In addition, product function table must also be part of the product development process.
According to the research and development framework of the function table.
The research and development results and their advanced nature.
What to develop in the future.
What is the planned investment in R&D funds?
Existing technical resources.
What is the research and development model?
Furthermore, what are the incentive mechanisms and measures for the R&D team.
In the next 3 to 5 years, the R&D investment and personnel investment plans are listed in the list.
5. Product manufacturing (Internet industry replaces itself with product operation)
The company’s current annual production capacity, plant area and number of production personnel (replacement with the Internet industry means the number of maintenance personnel, the server is not the amount of data, and the maintenance effect will be replaced by itself). In addition, it is necessary to define how advanced is the production equipment, what is its value, whether it is insured, what is the maximum production capacity, and its service life.
Furthermore, if you need to add equipment, purchase plan, purchase cycle and installation and commissioning cycle.
Product manufacturing process and technological process.
How to control the manufacturing cost of products and what measures.
Product quality management system.
Key quality inspection equipment, yield control methods and adopted control standards.
Procurement of raw materials, components, accessories, spare parts, etc.
Finally, raw material quality control methods.
6. Market plan in Business Plan
Product pricing method.
The composition of the cost of sales.
The basis for formulating sales prices and discount policies.
Strategies and methods for sales network, advertising promotion, establishment of agents and after-sales service.
In addition, identify what factors are related to the competitive advantage of the market plan?
What kind of incentive and restraint mechanism is adopted for sales staff.
Competitor’s sales plan.
What are your advantages.
Short-term sales target.
Long-term sales target.
List turnover forecast.
Hence, the list illustrates the market share forecast.
Seven, financial status
The column summary shows the company’s basic financial data in the past. (Main operating income, main operating costs, main operating profit, management expenses, financial expenses, net profit, subsidy income, total assets, total liabilities and net assets, break-even point of main products, gross profit margin and net profit margin.). In addition, you must provide description which works as the basis for the compilation of financial forecast data.
On your basis, provide the project break-even statement, balance sheet, income statement, and cash flow statement for the next 3 years after financing.
Furthermore, explain the types of taxes and tax rates related to the company’s business.
Which preferential policies the company enjoys and who will provide them.
Explain in detail the policy risks, R&D risks, market development risks, operational risks, financial risks that may be encountered in starting a business, and the risks of relying on key personnel of the company.
How to quantify these risks.
Countermeasures and management measures for these risks.
Whether the risk is reduced after the decision, and to what extent.
Lastly, how big is the final investment risk?
Nine, financing plan
Purpose and amount of financing. In addition, explain how much equity you intend to sell to investors at what price, and on what basis.
Fund use and use plan.
The list explains the project implementation plan after financing, including the progress of capital investment, effects, start and end time, etc.
Explain what supervision and management powers investors can enjoy.
How to participate in company affairs and the degree of participation.
In addition, explain what kind of report the company will provide investors. (Such as annual income statement, balance sheet, and annual audit report)
Explain how investments are realized, listing, transfer, repurchase, etc.
Finally, explain the average annual return on investment in the next 3 to 5 years after financing and the relevant basis.
10. Schedule in Business Plan
Lastly, list the project implementation plan and progress in detail, indicate the start and end time, completed results, planned completion goals, capital input of each project, and capital output of each project.
By looking at the information above, importance of business plan can be realized. Hence, this post helps in understanding how business plan can be written efficiently by focusing on the guidelines that are shared above. Furthermore, Your Writing Help is providing its services for effective business plan writing. In addition, business plans are integral element for a business student and their success in their academics.