Posts Tagged ‘The Model Structure of A Business Plan’
The Model Structure of A Business Plan VI
June 14th, 2010 | 
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10. Main risks and exit strategies
Risks
We could distinguish two types of risks: market themselves and the intrinsic project itself.
Basic risks affecting the market:
- Growth lower than expected.
- Uncertainties of the high technology sector, which can lead to significant discontinuities in short periods of time.
- Cost more than expected.
- Risks of the business itself.
- Unexpected input of a competitor.
- Lack of fit between the product and needs to cover the target.
In assessing the risks that may affect the business, it is necessary to include specific measures to address these risks and an alternative assessment of the company if you vary some of the key parameters of the model, such as user growth rate , etc.
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The Model Structure of A Business Plan V
8. Many, with whom, the degree of their development, conditions, etc.
9. Marketing and sales strategy
This section should contain two paragraphs basically: positioning / product differentiation and marketing strategy to follow to achieve the objectives set and billing traffic.
Positioning
- Type of position: description of the distinctive features of the product over the competition: perception clientee distinctive or unique.
- Differentiation: as expected to maintain that position over time.
This section should specify what will be the strategy to continue to attract many visitors want and what will be its cost.
The marketing strategy should detail:
- Main types used for communication between online and offline.
- Interlocultores or service providers with which it intends to work: advertising companies, companies selling banners.
- Cost of user acquisition and retention.
The Model Structure of A Business Plan IV
What investors are looking
- The management team has worked together before? – Do you have significant work experience prior? Founders Are aware of their weaknesses and will be able to address them?
- Are the founders clear their future roles? Are they clear the% of capital?
- Are they full time in the future project?
- Are all members a common goal, or are there discrepancies?
- Description of the main functions, people, responsibilities … What is necessary to assign the responsibilities of each team member and what is the system of delegation that is established.
- The organizational design must allow for the flexibility of the organization, adaptable to new circumstances and high growth.
7. State development and implementation plan
State of development of product/service
All investors want to minimize your risk, so you have to give a detailed explanation of the progress of the business idea.
The Model Structure of A Business Plan III
Financial Plan
Fundamental requirements of financial planning are:
- Income Statement: Entrance specifying the items and costs with its underlying assumptions (It is very important to justify the assumptions of growth of income and expenditure made, a good indicator is the comparison and justification of these same parameters in accordance with market growth.
- Projected cash flow, specifying when reach breakeven (after generating positive cash flow).
- Balance.
- Estimated 3-5 years, at least one year after the breakeven.
- Valuation of the company.
- Funding needs.
The financial plan should be detailed for the first two years (monthly or quarterly) and annually thereafter. All figures must be based on reasonable assumptions: only the major must be reasoned in the Business Plan.
6. Management team and organization
This section is the second in which investors are usually set, then the executive summary, want to know if the management team is Capable of carrying out the business: “I invest in people, NOT ideas.”
The Model Structure of A Business Plan II
3. Potential market
Market
- Description of the market.
- Size of market (sales volume, profitability, etc.).
- Degree of consolidation.
- Key factors for success in this market.
- Barriers to entry and exit.
- Development and Growth:.
- Rate of historical and future growth.
- Trends.
Target
- Customer segmentation criteria based on shared objectives.
- Size of market for each customer segment.
- Main factors of growth in each segment.
- Percentage of number of customers to capture regarding market volume.
- Sales volume by segment.
- Expected profitability of each market segment.
- More attractive market segment.
- Key factors in consumers’ purchases.
4. Competition
Barriers to entry
- Competitors exist.
- Comparison of these based on the following parameters: volume of sales, prices, growth, market share, positioning, product lines, customer segmentation, distribution channels, customer service.
The Model Structure of A Business Plan I
The Model Structure of A Business Plan:
1. Executive Summary
2. Product description and distinctive value
3. Potential market
4. Competition
5. Business model and financial plan
6. Management team and organization
7. State development and implementation plan
8. Strategic Alliances
9. Marketing and sales strategy
10.Principales risks and exit strategies
1. Executive Summary
The purpose of an executive summary is to capture the interest of potential investors, it must contain a brief summary of the most important aspects of the Business Plan.
The main elements contain are:
- The business idea: its exclusivity with respect to existing products / services.
- Target audience: main characteristics and their fit with the profile of Internet users.
- Value of the product / service for that target audience.
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