A business plan lays out a written plan from a marketing, financial and operational viewpoint. Sometimes, a business plan is prepared for an established business that is moving in a new direction. Next Up, breaking down 'business Plan'. A business plan is a fundamental tool that any startup business needs to have in place prior to beginning its operations. Usually, banks and venture capital firms make the existence of a viable business plan a prerequisite to the investment of funds in a business. A good business plan starts with an executive summary of the business; includes a detailed description of the business, its services and/or products; and states how the business intends to achieve its goals. It should also provide at least an overview of the industry of which the business will be a part, and how it will distinguish itself from its potential competitors. Financial Projections, a complete business plan must also include a set of financial projections for the business.
Five reasons you need
This will put a further strain on the companys solvency and hence a well structured business plan will help you manage funding requirements in advance. To support a strategic exit. Finally, at some point, the owners of the firm will decide it is time to exit. Considering the likely exit strategy in advance can help inform and direct present day decisions. The aim is to liquidate the investment, so writing the owner/current investors have the option of cashing out when they want. Common exit strategies include; Initial Public Offering of stock (IPOs). Acquisition by competitors, mergers, family succession, management buy-outs. Investment decisions can be taken in the present with one eye on the future via a well-thought-out business plan. For example, if goat the most attractive exit route appeared to be selling to a competitor, present day management and investment decisions could focus on activities that would increase the companys attractiveness to that competitor. Given that valuing firms is notoriously difficult and subjective, a well-written plan will clearly highlight the opportunity for the incoming investors, the value of it and increase the likelihood of a successful exit by the current owner. What is a 'business Plan a business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals.
Once written, a essay plan can be disseminated quickly and will also prompt further questions and feedback by the readers helping to ensure a more collaborative plan is produced. To help manage cash flow, careful management of cash flow is a fundamental requirement for all businesses. The reason is quite simplemany businesses fail, not because they are unprofitable, but because they ultimately become insolvent (i.e., are unable to pay their debts as they fall due). While the break-even pointwhere total revenue equals total costsis a highly important figure for start-ups, once a business is up and running profitably, it becomes less important. Cash flow management then becomes more vital when businesses pursue investment opportunities where there are significant cash out flows, in advance of the cash flows coming. These opportunities need to be assessed against any seasonal variations in the business and the timing of the flows. If you are a cash-only business, you can bank the income immediately; however, if you sell on credit, you receive the cash in the future and hence may need to pay some of your own expenses before that income hits your account.
What the Unique selling Proposition (USP) for the business arising from the opportunity is? Why people will part with their cash to buy from your business? A well-written business plan can help you convey these points to prospective investors, helping them feel confident in you and in the thoroughness with which you have considered future scenarios. The most crucial component for them will be clear evidence of the companys future ability to generate sufficient cash flows to meet debt obligations, while enabling the business to operate effectively. To develop and communicate a course of action. A business plan helps a company assess future opportunities and commit to a particular course of action. By committing the plan to paper, all other options are effectively marginalized and the company is aligned to focus on key activities. The plan can assign milestones to specific individuals and ultimately help management to monitor progress.
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Then it doesnt matter which way you go, said the cat. For me this scene encapsulates perfectly the problems of not having an business over-arching goal and plan for your business. Without a plan, or using a cookie cutter business plan template a business is essentially rudderless, and day-to-day activities are likely to be haphazard and reactive, in stark contrast to those businesses implementing a well thought out business plan. The following represents a list of my top five reasons a firm needs a business plan. To map the future, a business plan is not just required to secure funding at the start-up phase, but is a vital aid to help you manage your business more effectively. By committing your thoughts to paper, you can understand your business better and also chart specific courses of action that need to be taken to improve your business. A plan can detail alternative future scenarios and set specific objectives and goals along tell with the resources required to achieve these goals.
By understanding your business and the market a little better and planning how best to operate within this environment, you will be well placed to ensure your long-term success. To support growth and secure funding. Most businesses face investment decisions during the course of their lifetime. Often, these opportunities cannot be funded by free cash flows alone, and the business must seek external funding. However, despite the fact that the market for funding is highly competitive, all prospective lenders will require access to the companys recent Income Statements/Profit and Loss Statements, along with an up-to-date business plan. In essence the former helps investors understand the past, whereas the business plan helps give them a window on the future. When seeking investment in your business, it is important to clearly describe the opportunity, as investors will want to know: Why they would be better off investing in your business, rather than leaving money in a bank account or investing in another business?
True dimensions manufactures and markets ultra-contemporary, ergonomic furnishings and is looking for funding to expand their market. EcoClear developed an innovative self-cleaning water filtration technology and plans to expand their market. In the pipeline Identifies, develops, and promotes innovative products from concept to commercialization for repair, redesign and installation of pvc pipe. Independence marine Independence marine has completed production tooling and field testing of products that aid in environmentally sustainable harvest of ocean resources. They are seeking capital for production ramp and marketing. Zif Medical devices Zif has developed a new safety syringe for protecting medical personnel from needle-sticks.
The business Plan discusses licensing the technology to others and a plan for manufacturing and distributing. Copyright These business plans are presented here to benefit and promote the moot corp Competition. The information and ideas contained in these business plans are the proprietary, sole and exclusive property of the companies founders. When i am asked to explain why business planning is so important, my first inclination is to" lewis Carroll. In Alices Adventures in Wonderland, Alice comes to a fork in the road and asks: would you tell me, please, which way i ought to go from here? That depends a good deal on where you want to get to, said the cat. I dont much care where said Alice.
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Products: Breeze empire technology, inc. Breeze has designed a new athletic shoe that is air-cooled with both cost and performance advantages over existing products. The business Plan documents a strategy for licensing the technology to existing manufacturers. Reid Corporation id Corp. Manufactures a revolutionary chair for watching television in a home entertainment center. Application Technologies Application Technologies introduces a packaging front product which is unit-dose and disposable including a built-in applicator, aimed at the medical and personal care markets. Expert Application Systems, Inc. Easi develops packaged software systems for growth markets and needs capital for market expansion.
VeriType, veriType is a medical software company that allows medical service providers to ensure compliance with government regulations and avoid fines and minimize errors. Time merchants, time merchants references consumers to qualified service providers and provides home delivery of goods and services. Eurosky, eurosky offers shared, fractional ownership of aircraft. The business Plan is capital intensive and is based upon the founders specialized knowledge of the industry. Green Design Group, green provides apparel design, import and marketing of active sportwear. It generates revenue through consulting, royalties and imports. Airex offers contract disposal and management of industrial residues based upon the specialized engineering expertise of the founders. Nepkar Detailed, technical business plan in the field of drug screening for pharmaceutical companies using yeast genetic engineering in the discovery of new drugs. Walking summary Peru walking Peru is a recreational tourism company that offers opportunities to visit choice tourist attractions through passive recreational sports.
The utility achieves significant cost savings by replacing paper bills, faster payment cycles and an interactive marketing connection to their customers. M m offers online purchase and download of music files to be written to cd for play on a conventional player. Mindshaker, mindshaker provides a single, online source of proven books, articles by academic and industry experts, cases and value added learning aids for more than.8 million graduate students and the faculty that instruct them. ProTrax offers customized advertising services on the Internet for organizations seeking highly specialized employees. Boomerang provides educational programs on the Internet to medical and therapeutic practitioners. Services: Momentex, momentex markets beverages, snacks and entertainment items to drivers at toll booths.
(2MBA) develops innovative beverage equipment for lab corporate owners of major food brands. M, best Written Plan, sanaSana is a b2B2C internet service for consumers of health care and the payers, providers and suppliers of health services in the hispanic community. Fabrica is a provider of woven fabric samples from the ks loom, which gives buyers the chance to see the actual colors and feel the precise texture of what they desire in less than one-tenth the time usually required for making samples with a production-weaving. First Runner-Up, vusion is developing a chemical analyzer and Sensor Cartridge, based upon the Electronic Tonguetmtechnology, which can instantly analyze complex chemical solutions. Second Runner-Up, jetFan was established to develop and manufacture commercial applications for an innovative fan-blade technology. Market applications include those in compact electronic equipment cooling; heating ventilation and cooling; and domestic appliances. Internet Services: m, adGrove serves as a sales channel for radio ads.
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Moot corp Competition, the super Bowl of Business Plan Competition. Business week, the moot corp Competition simulates entrepreneurs asking investors for funding. Mbas from the best literature business schools in the world present their business plans to panels of investors. The investors then choose the best new venture. All participants benefit from the opportunity to: crystallize their thinking in preparing to present to the investors, receive feedback and advice from distinguished investors, entrepreneurs, and support professionals, network with fellow mba entrepreneurs become more skilled in analyzing, writing, and presenting business plans. For more information, see: The following business plans were presented at moot corp Competition. Read the details of any of these plans or select from the list below the best example of each specific topic. World Champion, manufacturing and Marketing beverage Appliances, Inc.