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Business Plan - Coggle Diagram
Business Plan
Introduction of Business
What is the Business Plan ? A written document describing all relevant internal and external elements, and strategies for starting a new venture.
Who should write the plan ? The plan should be prepared by the entrepreneur in consultation with other source.
Who reads the plan ?
The plan will be read by potential investors, customers, marketers
and more.
Detail on the business plan depends on size / scope of the proposed new venture, size of the market, competition and potential growth.
Benefit of business plan ; helps determine the viability of the venture in a designated market, guides the entrepreneur in organizing activities, serves an important tool in obtaining financing.
Presenting the plan
The entrepreneur in expected to "sell" the business concept to provide an overview of the marketing program, sales and profit.
Operation information needs ; location, manufacturing operations, raw material, equipment, labor skills, space, overhead, most of the information that should be incorporated directly into the business plan.
Financial information needs : the entrepreneur has to prepare a budget of all possible expenditures and revenue sources including sales and any external available funds.
Writing the business plan
Introductory page consists of name & address of the company, details of the entrepreneur (telephone numbers, fax number, e-mail address, web site address), description of the company & nature of the business, statement of financing needed and statement of confidentially of report.
Executive summary, about 2 to 3 pages in length summarizing the complete business plan.
Environmental and industry analysis. the environmental analysis assesses the external uncontrollable variables that may impact the business plan. eg : economy, culture.
Operations plan. It describes the flow of goods and services from production to the customer. All business should include an operations plan as part of the business plan.
Marketing plan . It describes market conditions and strategy related to how the product/services will be distributes, prices and promoted.
Organizational plan. It describes the form of ownership and lines of authority and responsibility of members of new venture.
Assessment of risk. It identifies potential hazards and alternative strategies to meet goals and objectives. The entrepreneur should indicate the potential risks to the new venture, impact of the risks and strategy to prevent, minimize or respond to the risk.
Financial plan. It contains projections of key financial data that determines economic feasibility and necessary financial investment commitment.
Appendix. Contains any backup material that is not necessary in the text of the document.
Using and implementing the business plan.
Measuring plan progress. The entrepreneur should frequently check on profit and loss statement, cash flow projections, inventory control, production control, quality control, sales control, disbursement, web site control.
Updating the plan. Entrepreneur must be sensitive to changes in the company, industry and market thus determine what revisions are needed if changes are likely to affect the business plan.
Why some business plan fail ? It is due to unreasonable goal, objectives are not properly measured, entrepreneur has not made a total commitment to the business, lack of experience in the planned business, no sense of potential threats or weaknesses to the business and lastly no customer was established for the proposed product or service.
Marketing plan
Industry analysis
It provides sufficient knowledge of the environment that can affect marketing strategy decision making
Competitor analysis is a document current strategy of primary competitors. Information can be utilized to formulate the market positioning strategy.
Industry analysis can help entrepreneur to understand competitor's strengths and weaknesses.
Understanding the marketing plan
It is a written statement of marketing objectives, strategies and activities to be followed in business plan
A marketing plan should provide a strategy, be based on facts/assumption, describe an organization for implementation, provide for short-term and long-term continuity, be simple and short, flexible and lastly, specify criteria for control.
The marketing mix. It is a combination of product, price, promotion and distribution and other marketing activities needed to meet marketing objectives.
Steps in preparing the marketing plan
Defining the business situation. Situation analysis - describes past and present business achievements of new venture
Defining the target market/opportunities and threats. The target market is specific group of potential customers toward which the venture aims its marketing plan.
Establishing goals and objectives. Goals should represent key areas to ensure marketing success.
Defining marketing strategy and actions programs.
Product or services. Involve packaging, brand name, price warranty and many more.
Price. Consist of cost such as material cost, labor cost, cost of goods from supplier and many more.
Distribution. Provides utility to the customer and must also be consistent with other marketing mix variables.
Promotion. To inform potential customers about the product's availability or to educate the consumer.
Marketing strategy : Consumer versus Business-to-Business Markets. Business-to-Business markets involves selling of products or services to another business.
Budgeting and implementation.
Budgeting. Cost should be reasonably clear.
Implementation. The plan is meant to be a commitment by the entrepreneur to a specific strategy.
The social media plan
Social media represents opportunities for entrepreneur to engage consumers. eg : FB, IG.
STEP 1 : Identify the target market before beginning the social media strategy.
STEP 2 : Identify the social network to be utilized. eg: FB, Twitter.
STEP 3 : Start with a company website that links to your FB or IG. Include a blog or newsletter that provide important information about the company and product to the target market.
STEP 4 : Post information on a regular basis, set aside a time in a day to review posts and update any new information.
STEP 5 : Assess and analyze the effectiveness of your social media plan.
The pitfalls of social media plan
Social media requires the cultivation of relationships.
It is necessary to allocate enough time each day to review, update and responding to any post in blogs.
Avoid using all posts in promoting you brand.
Talk back to followers immediately to generate increased interest
Avoid from not setting goals for the social media plan.