COMPONENTS OF A BUSINESS PLAN

I. Cover Sheet
Definition:
An effective business plan details how your company will achieve its goals by describing
your products or services, your organizational structure, marketing ideas, and how your company
will distinguish itself from competitors. Business plans are most often used to attract potential
investors, but some companies also use these plans to communicate their culture to employees or
to provide compelling reasons for a merger. Although it may seem minor, the business plan
cover page can create a powerful first impression that sets the stage for how readers will engage
with the document.
Content and Format:
o Use Your Company Logo - Your business plan cover page should include your
company’s logo centered at the top of the page. The best practice is to create a high-
resolution image of the logo and make it consistent with the font type and color scheme
of the logo, as it appears in all your company’s documents. The logo should be the first
thing that catches your readers' eyes and helps them associate that logo with your
company name. Placing the logo at the top of the page establishes a strong brand
association that focuses a reader's attention throughout the document.
o Write the Title and Company Name - Skip several lines after the company logo and write
the words “Business Plan.” Center this title on the cover page and make sure that it’s in
bold. Include any additional words that are part of the title. For example, you could write,
“Five-Year Business Plan,” or “Three-Year Business Plan.” The title should have the
second largest font after your company name. Skip two lines. Then, under the title of
your business plan, write and center the name of your business. Your business name
should be in bold and set off in the largest font on the page so that it stands out. If readers
take away nothing else from the cover page, they should know and remember the name of
your company.
o Write the Company Address, Phone Number, and Date You Completed the Plan - Under
the company name and logo, write and center your business address. This is the address
where investors or other interested parties should send all their inquiries. If you already
have a website that’s up and running, you can include the web address after the physical
address. Include your business phone number and business fax number. Directly below
the contact information, write and center the month and year in which you completed the
business plan.
o Write a Confidentiality Statement - Centered at the bottom of the page, include a
confidentiality statement. For example, you could write, “This document contains
confidential and proprietary information created by [your company name]. This
document is issued exclusively for informational purposes, and may not be reproduced
without the consent of [your company name].”
II. The Proponents
Definition:
A person who puts forward a proposition or proposal. A person who argues in favor of
something; an advocate. A person who supports a cause or doctrine; adherent. A person who
propounds a legal instrument, such as a will for probate.
Content and Format:
Should introduce and highlight the good qualities of:
 the business proponents and their partners;
 the enterprise organization and its capabilities;
 the technology providers and their expertise and experience; and
 the suppliers and all the major service providers.
 Should likewise describe the products/services of the enterprise, their features and
attributes, and why they are the right ones to deliver to the customers
 Should then proceed to discuss and justify the Enterprise Strategy and Enterprise
Delivery System
 Should also contain a section on the environmental and regulatory compliance of the
proposed business, as well as the more proactive programs to become a more
responsible corporate citizen
 Should present the capital structure of the proposed business and show how this
structure will respond to the investment programs and financial forecasts of the
enterprise.
The Business Proponents - The third section of the business plan contains information about the
business proponents or stakeholders.
Proponents - a person who puts forward a proposition or proposal

Four Types of Stakeholders

1. Resource mobilizers and financial backers
2. Technology providers and applicators
3. Governance and top management
4. Operating and support team

III. Executive Summary

Definition:
An executive summary or management summary, is a short document or section of a
document, produced for business purposes, that summarizes a longer report or proposal or a
group of related reports in such a way that readers can rapidly become acquainted with a large
body of material without having to read it all. It usually contains a brief statement of the problem
or proposal covered in the major documents, background information, concise analysis and main
conclusions. It is intended as an aid to decision-making by managers and has been described as
the most important part of a business plan.
Content:
o Structure - There is general agreement on the structure of an executive summary - books
and training courses emphasise similar points. Typically, an executive summary will:

 be approximately 5-10% of the length of the main report

 be written in language appropriate for the target audience
 consist of short, concise paragraphs
 begin with a summary
 be written in the same order as the main report
 only include material present in the main report
 make recommendations
 provide a justification
 have a conclusion
 be readable separately from the main report
 sometimes summarize more than one document
o Importance - Executive summaries are important as a communication tool in both
academia and business. For example, members of Texas A&M University Department of
Agricultural Economics observes that "An executive summary is an initial interaction
between the writers of the report and their target readers: decision makers, potential
customers, and/or peers. A business leader’s decision to continue reading a certain report
often depends on the impression the executive summary gives”.
o Criticisms - It has been said that, by providing an easy digest of an often complex matter,
an executive summary can lead policy makers and others to overlook important issues.
Prof. Amanda Sinclair of the University of Melbourne has argued that this is often an
active rather than a passive process. In one study, centered on globalization, she found
that policy makers face "pressures to adopt a simple reading of complex issues" and "to
depoliticize and universalize all sorts of differences". She claims that "all research was
framed under pre-defined and generic headings, such as business case points. The
partners' reports were supposed to look the same. The standardization of research
occurred via vehicles such as executive summaries: “executives only read the
summaries” we were told”. Similarly Colin Leys, writing in The Socialist Register,
argues that executive summaries are used to present dumbed down arguments: "there is
remarkably little adverse comment on the steep decline that has occurred since 1980 in
the quality of government policy documents, whose level of argumentation and use of
evidence is all too often inversely related to the quality of their presentation.
o Audience - Primarily the readers are (often busy) executives who must make decisions
regarding funding, policy, or personnel based on the findings, recommendations, or both,
presented in the main document.
 o Location - In most documents, the executive summary is the first section of the document
appearing after the table of contents and before the introduction. Some requirements --
typically government RFPs (request for proposals) -- stipulate that the executive
summary must be bound separately.
o Length - Unlike abstracts, executive summaries are usually proportional in length to the
main document, typically about 5 - 10 percent. Some organizations, however, stipulate
the length, e.g., one page.
Format:
o An Intriguing Introduction - The first paragraph should be the strongest part of the
executive summary. Similar to an elevator speech, the introduction needs to have a strong
hook that explains what the company does. This is where you capture the reader’s
attention.
o Identify the Issue - A business is founded on solving some type of problem. Identify and
explain the issue that will paint your business in a positive light.
o Propose a Unique Solution - How does your business solve the problem? And if there are
similar companies, how is your organization different? This is where you “explain why
your idea has merit and how it can solve a common problem by making things easier,
faster, or cheaper for the prospective customer(s),” Entrepreneur says.
o Prove It - Back your claims with evidence. Use stats and research to support how your
business will solve the issue.
o Ask for What You Need - How much will it cost? Include the amount you’re seeking,
along with details like what the return on investment will be and over what period of
time.
o How to Write an Executive Summary: The Nuts and Bolts
 Keep it Short - There is no set length that an executive summary should be. Rules of
thumb include making it no longer than 10 percent of the original document or
keeping it to one or two pages.
 Use Accessible Language - Avoid complicated language, unless your audience is
familiar with technical terms. Also leave out business buzzwords and jargon.
 Use Bullet Points and Subheadings - Clean formatting practices help readers scan
the executive summary and find what they’re looking for.
 Avoid the Use of First-Person Pronouns - Write for your audience. Using “I”
statements makes the summary less personal and undermines your persuasiveness.
 Proofread and Edit - Readers may immediately discard important documents with
simple spelling and grammatical errors, as well as unclear or sloppy writing. Seek
professional editing services.
o Developing as an Entrepreneur or Business Leader - Entrepreneurs and business leaders
can gain the knowledge and skills needed for success. Alvernia University offers an
online MBA that prepares graduates for entrepreneurship, management-level positions
and other roles. This program is taught by faculty members and instructors with real-
world business experience. It is offered fully online, allowing students to maintain their
work and personal schedules.
 A. Mission Statement
Definition:
A mission statement is a short statement of an organization's purpose, identifying the goal
of its operations: what kind of product or service it provides, its primary customers or market,
and its geographical region of operation. It may include a short statement of such fundamental
matters as the organization's values or philosophies, a business's main competitive advantages, or
a desired future state—the "vision". A mission is not simply a description of an organization by
an external party, but an expression, made by its leaders, of their desires and intent for the
organization. The purpose of a mission statement is to focus and direct the organization itself. It
communicates primarily to the people who make up the organization—its members or
employees—giving them a shared understanding of the organization's intended direction.
Organizations normally do not change their mission statements over time, since they define their
continuous, ongoing purpose and focus.
Content:
In almost every one of my keynote presentations, I cover the content marketing mission
statement. I feel it’s critical to set the tone for the idea of content marketing, or any marketing for
that matter. Marketing professionals from so many small and large businesses get so fixated on
channels such as blogs, Facebook or Pinterest that they honestly have no clue of the underlying
content strategy. So, the why must come before the what. This seems obvious, but most
marketers have no mission statement or core strategy behind the content they develop.

Let’s dissect this a bit. Inc’s mission statement includes:

1. The core audience target: entrepreneurs and business owners
2. What will be delivered to the audience: useful information, advice, insights,
resources, and inspiration
3. The outcome for the audience: growing their businesses.
Format:
A mission statement typically consists of two to four sentences and helps people
understand the purpose of the business. ... As long as the statement accurately describes
your small business and its function in a believable and easy-to-read manner, it will work.

B. Vision Statement
Definition:
A vision statement is a company's road map, indicating what the company wants
to become and guiding transformational initiatives by setting a defined direction for the
 company's growth. Vision statements undergo minimal revisions during the life of a
business, unlike operational goals which may be updated from year-to-year. Vision
statements can range in length from short sentences to multiple pages. Vision statements
are also formally written and referenced in company documents rather than, for example,
general principles informally articulated by senior management.
Content:
The vision statement is often confused with the mission statement. Some people
use the two terms interchangeably. Actually, the vision statement is about what the
business’s future will look like if the mission is achieved. Some say a vision statement
imagines what success looks like.
Format:
A company vision statement is an important part of a business plan's overview. It
is one part your dream for your company and another part the path you're laying for your
business in the future. The vision statement is generally written with a long-term
perspective in mind.

C. Core Values
Definition:
A principle that guides an organization's internal conduct as well as its
relationship with the external world. Core values are usually summarized in the mission
statement or in a statement of core values
Content:
o Corporate Core Values - Companies can have core values as well. These are the guiding
principles that help to define how the corporation should behave in business and perhaps
beyond, if they have an additional mission to serve the community. Core values are
usually expressed in the corporation's mission statement. Some examples of core values
for a company include:
 A commitment to sustainability and to acting in an environmentally friendly way.
Companies like Patagonia and Ben & Jerry's have environmental sustainability as
a core value.
 A commitment to innovation and excellence. Apple Computer is perhaps best
known for having a commitment to innovation as a core value. This is embodied
by their "Think Different" motto.
 A commitment to doing good for the whole. Google, for example, believes in
making a great search engine and building a great company without being evil.
 A commitment to helping those less fortunate. TOMS shoe company gives away a
pair of shoes to a needy person for every pair it sells in an effort to alleviate
poverty and make life better for others.
  A commitment to building strong communities. Shell oil company donates
millions of dollars to the University of Texas to improve student education and to
match employee charitable donations.
 As you can see, often the core values that companies have are similar to those that
individuals might choose as guiding principles as well.

o Some Types of Core Values - There are countless types of core values, as you can see, so
you will need to choose the ones that are right for you or your organization. It's natural to
want to choose a long list of core values in an effort to be the best you can be, but
limiting your selection to two or three helps you focus on your mission in life without
becoming distracted.
Here are some examples of core values from which you may wish to choose:
 Dependability  Motivation
 Reliability  Positivity
 Loyalty  Optimism
 Commitment  Passion
 Open-mindedness  Respect
 Consistency  Fitness
 Honesty  Courage
 Efficiency  Education
 Innovation  Perseverance
 Creativity  Patriotism
 Good humor  Service to others
 Compassion  Environmentalism
 Spirit of adventure

o Identifying Core Values - While some people or organizations might expressly

share their core values, often the best way to identify these values is to watch how
they behave. For example, a tobacco company that emphasizes profits over public
health acts in a way that is not consistent with a stated core value of caring for
others. No company will advertise negative core values, of course, but you can
judge what really lies at the heart of a business' mission by examining how they
act when it counts. A core value is only true if it has an active influence and if the
people or company manage to live by it, at least most of the time.

D. Objectives
Definition:
 Business goals and objectives are part of the planning process. They are describe what a
company expects to accomplish throughout the year. Business owners usually outline their goals
and objectives in their business plans. These goals and objectives might pertain to the company
as a whole, departments, employees, customers and even marketing efforts. Most companies use
specific measurements to keep track of their goals and objectives.
Content and Format:
Before you start - Before you even begin to write down your goals, you need to know what areas
your business needs to improve in, or could improve in. Although you may already have an idea
of the key areas, it’s important to regularly step back and review your business. Here are some
help tools and strategies you can use to help you assess your business:
1. SWOT analysis – identify your business's strengths, weaknesses, opportunities and
threats.
2. Benchmarking – research similar businesses in your industry or location and compare
industry averages on income, and expenses. This can help you assess how your business
is performing. Check out our information on finding government statistics.
3. Market research – do your homework and research the market and industry of your
business to identify customer needs, trends and changes in the market or technology.
Setting goals - Setting SMART (specific, measureable, achievable, relevant and timely) goals
can help you evaluate the goals you wish to set. Think about whether they are realistic. You
should write down your goals in your business plan to help keep you on track to achieve them.
Here are a few things to consider when setting your goals:
1. Specific – be clear about what you want to achieve
2. Measurable – make sure the goal can be measured, and you can recognise if you’ve
achieved your goal
3. Achievable - check that your goal is something you have the time, money and resources
to meet
4. Relevant – ensure your goal is relevant to the direction you want your business to head
in, for example, increasing profit, employing more staff, increasing brand awareness
5. Timely - set a realistic deadline for completing the goal.
Achieving your goals - Once you’ve got your list of business goals, you’ll need to figure out how
to achieve them. Be realistic in what you can achieve. It might be helpful to break down the steps
into smaller chunks. Here’s a list of things to consider when planning your strategy to achieve
your business goals:
1. Time Frame – how long do you expect a task will take to complete (include both a start
and finish date)
2. Actions – describe the actions you are going to take in detail (e.g. research five different
ice-cream suppliers in Hobart and make a list of their pros and cons)
3. Responsibilities – write down the person or people responsible for achieving each step
4. Resources – detail your budget, staffing requirements and any supplies you’ll need
 5. The Desired Outcome – describe what you expect from your actions and how you’ll
know when the goal has been achieved.

E. PERFORMANCE TARGETS
Definition:
Setting a target is not about guessing what you can achieve. It involves knowing where
you are now, what you are trying to achieve, and determining challenging but realistic amounts
of improvement needed to get there.
Content and Format:
Step 1: Define where you are now
o Method 1 — Use Historical Data - It can be helpful to use data that your unit has
already gathered to establish a baseline, or starting point, for your target.
o Method 2 — Use External Sources - When you do not have historical data, you
might consider using information from outside data sources to benchmark, or
compare your performance data with those of other comparable universities /
departments / programs (an accrediting agency’s standards, IPEDS, etc). Then set
targets that seem reasonable in light of the benchmarking information you've
gathered.
Step 2: Define what you want to achieve and by when
Remember, you want to have a delicate balance between challenging and realistic. A
stretch target is intended to "raise the bar" enough to inspire your people. But it also must be set
at a level at which your direct reports have the skills, knowledge, and company resources
required to meet the target. "Stretch" targets usually requires significant effort to achieve. Ask
yourself how much of a stretch will motivate without causing people to become overwhelmed or
demoralized.
It's important to carefully evaluate the historical data you're considering using as your
target baseline. Look at how the data for a particular period and see whether there has been an
abrupt change in performance. If there has been, investigate the reasons for the change. If there
were unusual circumstances during that period (such as a recession), the figure may not be a
good reference point and you may want to consider using data from a different period to inform
your target.

Step 3: Things to consider

Timeline: Be clear about how long you need to achieve your target. Will you need to set
intermediary targets?
  Scenario: Enrollment in your program has increased an average of 2% over the
past three years
 Possible Target: Increase in enrollment 3% annually so that we have 70 students
by 2015
 Resources: Do you have everything you will need (equipment, personnel,
processes, workspace, etc.) to achieve the target?
 How can it achieved?: Can it be achieved by working harder, more resources,
improving a process, an investment in technology?

IV. Market Description/Assessment

Definition:
Market assessment is a detailed and objective evaluation of the potential of a new
product, new business idea or new investment. It is a comprehensive analysis of environment
forces, market trends, entry barriers, competition, risks, opportunities and the company’s
resources and constraints. Whether you are thinking of venturing into a new market or launching
a new product, conducting a marketing assessment is the crucial first step in determining if there
is a need or a potential customer base for your product.
A well executed market assessment will enable your company to decide where to use
limited resources and to go after markets and opportunities that will provide the best returns on
investments. Failure to conduct proper market assessment could result in wastage of resources,
missed opportunities, poor returns on investments and even substantial financial losses which
could be detrimental to the future of your company.
Content and Format:
An assessment of the market should be done in a systematic manner. The process can be
broken down into the following steps.
1. First, understand market conditions.
2. Gather basic information about your intended market – size, competition, potential
customers and income levels. You will also need information about the business
environment – political, economic, social and technological.
3. Next, identify market risks and opportunities.
4. Gather more targeted information about potential risks or opportunities in the potential
market. Other information required includes data on market growth, trends, opportunities,
risks and key players in the market.
5. Finally, you need to analyze the overall picture.
6. You need to put together all the information you have collected and determine if your
business venture is still viable. Once you are confident that you should proceed with the
venture, you can start developing your marketing plan.
V. Marketing Plan
Definition:
A marketing plan is a business's operational document for outreach and advertising to
generate leads and reach its target market. A marketing plan pulls together all the campaigns that
will be undertaken over a period with additional information on how they will be measured and
monitored. The marketing plan interacts with other business operations in several ways,
including:
 Providing market research to support pricing decisions and new market entries.
 Tailoring the main messages to different demographics and geographic areas.
 Selecting the platforms for promoting the product or services - digital, radio, internet,
trade magazines and the mix of those platforms for each campaign.
 Setting up the success metrics and the results reporting timelines.
 A marketing plan is based on a company’s overall marketing strategy.
Content:
o Executive Summary - Brief statement of goals and recommendations based on
hard data.
o Current Marketing Situation - Presents data on the market, product, competition,
distribution, macro-environment. (Product fact book) S.P.I.N.S. Situation “Where
am I”, Problem identification/Implications “What is happening”, Needs
Assessment “Why is it happening”, Solutions “What can I do about it”Market
Situation: Data on target market, size and growth for past years and each
segment. Data on customer needs, perceptions, and buying behavior
trends.Product Situation: Sales, prices, contribution margins and net profits for
each major product line in the past several years.Competitive Situation: Major
competitors described in terms of their size, goals, market share, product quality,
marketing strategies.Distribution Situation: Information on size and importance
of each distribution channel.Macro-environment Situation: Describes broad
macro-environment trends – demographic, economic, technological,
political/legal, socio/cultural, that bear on a product’s future.
o Opportunity and Issue Analysis - SWOT analysis opportunities
Format:
Building a multi-channel marketing plan can be a messy, headache-inducing process.
With ROI on the line you don’t have the luxury of “winging’ it” and sure as heck won’t stamp
your approval on a potential target.
Constructing a strategic marketing plan ensures your campaign will be on track for
success from the get-go. These free templates outline everything you need to consider to build a
successful strategy and watch your ROI soar.
A. Marketing Objectives
Definition:
Marketing objectives are goals set by a business when promoting its products or services
to potential consumers that should be achieved within a given time frame. In other words,
marketing objectives are the marketing strategy set in order to achieve the overall organizational
objectives. A company's marketing objectives for a particular product might include increasing
product awareness among targeted consumers, providing information about product features and
reducing consumer resistance to buying the product.
Content:
Effective content creation requires a clear understanding of your marketing goals and
objectives. Only then can you produce content that delivers those marketing goals honestly. That
is what makes content marketing strategies work.
All of your posts, podcasts, and advertising need to work in synergy, promoting your
business, to be successfully marketing content. Here Are 10 Valuable Marketing Goals
Examples:

1. Build trustworthiness - and a sense of connection with your audience. When you
provide quality, informative content that engages viewers, they feel valued and your
business earns credibility.
2. Get users to share your content. Content production needs to be outstanding. Marketing
content should captivate your audience so much, that they want to share your posts, use
‘likes,’ and bring up your content in the discussion. The more engagement you stir; the
more followers you will attract.
3. Explore your potential customer’s problems. By understanding what people need, you
then know how to offer solutions. One commonly used content marketing strategy is to
hold online Q&A sessions. Another option it to hold webinars intended especially for the
purpose of finding answers to consumer’s problems. Use this new information to
generate more engaging content.
4. Now that you have discovered problems, discuss solutions. Show consumers how your
products and services will help improve the quality of their l Show consumers how your
products and services will help improve the quality of their lives. Offer helpful tips, day-
to-day new approaches, and how users can benefit from utilizing what you can provide
for them.
5. Understand what keeps customers from making purchases. If buyers think your
prices are too high, find an interesting way of showing then how they can actually save
money using your products in the long run. If they think the directions are too
complicated, explain in a step-by-step fashion that is easy to understand. Provide
marketing content that speaks directly to the audience, on a personal level.
 6. Write a story that allows customers to visualize themselves using your products.
This is a highly effective content marketing strategy. They can try it out in their minds
before actually making the purchase.
7. Develop strategic partnerships. Elect partners with similar marketing goals and
objectives. Find successful strategic partners who can complement your skills, help
provide even more stimulating content production and more excitement for your
audience.
8. Take care of your loyal following. Don’t put your focus only on gaining new followers.
Your constant and loyal customer base need lots of attention and regular outreach or
communication. These people help spread the word that what you have to offer is good
and worth checking out. The power of referrals and repeat business is what it’s all about.
9. Create and test new ideas. Work your new ideas into your marketing content. Find out
what your audience thinks and how it can be improved. This is an easy way to see what
themes viewers are instantly excited about and what directions to avoid. It’s a seamless
way to introduce new product concepts. It doesn’t hurt to test the waters.
10. Use SEO to boost your reputation.
If your marketing content is being sought after and shared, people like it. If people like it,
search engines do too. The first step to search engine optimization is to provide the best high-
quality, interactive, compelling content that keeps your audience coming back for more.

Format:
Once you have established your strengths and weaknesses and the opportunities and
threats available through the marketing audit you can redefine your marketing objectives and
how these fit in to your business objectives. Typically, clients marketing objectives include some
or all of the following:
 Increase sales
 Build brand awareness
 Grow market share
 Launch new products or services
 Target new customers
 Enter new markets internationally or locally
 Improve stakeholder relations
 Enhance customer relationships
 Improve internal communications
 Increase profit.
B. Marketing Strategies
Definition:
A marketing strategy is a process or model to allow a company or organization to focus
limited resources on the best opportunities to increase sales and thereby achieve a sustainable
competitive advantage. Confused about the difference between that and your marketing plan,
marketing mix, business goals, etc?
Your marketing strategy is the way you make sure you’re getting the maximum impact
from your limited marketing budget and time. Start with your business goals: these are the
highest-level objectives of the business, or mission statement. Next comes the marketing
strategy: the high-level rules that will govern what marketing efforts you focus on. After you’ve
defined your marketing strategy, you will define the marketing mix: plans for Product, Pricing,
Place (Distribution), and Promotion. Then the final step is writing a marketing plan, which will
describe the specific, detailed marketing activities that you plan on engaging in to achieve the
marketing strategies and business goals.
Your first step in developing a marketing strategy that drives significant business results
is to make sure you fully understand your market by doing some research: market size and
growth, competitors, complementors, and customers.

Content:
To grow your business, you need a marketing plan. The right marketing plan identifies
everything from
1. who your target customers are to
2. how you will reach them, to
3. how you will retain your customers so they repeatedly buy from you.

Done properly, your marketing plan will be the roadmap you follow to get unlimited
customers and dramatically improve the success of your organization. To help you succeed, use
this proven marketing plan template, and the information below details the 15 key sections you
must include in your marketing plan.

o Section 1: Executive Summary - Complete your Executive Summary last, and, as the
name implies, this section merely summarizes each of the other sections of your
marketing plan.
Your Executive Summary will be helpful in giving yourself and other
constituents (e.g., employees, advisors, etc.) an overview of your plan.
o Section 2: Target Customers - This section describes the customers you are targeting.
It defines their demographic profile (e.g., age, gender), psychographic profile (e.g.,
their interests) and their precise wants and needs as they relate to the products and/or
services you offer.
Being able to more clearly identify your target customers will help you both
pinpoint your advertising (and get a higher return on investment) and better “speak the
language” of prospective customers.
o Section 3: Unique Selling Proposition (USP) - Having a strong unique selling
proposition (USP) is of critical importance as it distinguishes your company from
competitors.
The hallmark of several great companies is their USP. For example, FedEx’s USP
of “When it absolutely, positively has to be there overnight” is well-known and
resonates strongly with customers who desire reliability and quick delivery.
o Section 4: Pricing & Positioning Strategy - Your pricing and positioning strategy
must be aligned. In this section of your marketing plan, detail the positioning you
desire and how your pricing will support it.
o Section 5: Distribution Plan - Your distribution plan details how customers will buy
from you. For example, will customers purchase directly from you on your website?
Will they buy from distributors or other retailers? And so on.
Think through different ways in which you might be able to reach customers and
document them in this section of your marketing plan.
o Section 6: Your Offers - Offers are special deals you put together to secure more new
customers and drive past customers back to you. Offers may include free trials,
money-back guarantees, packages (e.g., combining different products and/or services)
and discount offers. While your business doesn’t necessarily require offers, using
them will generally cause your customer base to grow more rapidly.
o Section 7: Marketing Materials - Your marketing materials are the collateral you use
to promote your business to current and prospective customers. Among others, they
include your website, print brochures, business cards, and catalogs, materials you
have completed and which you need created or re-done in this section of your plan.
o Section 8: Promotions Strategy - The promotions section is one of the most important
sections of your marketing plan and details how you will reach new customers.
There are numerous promotional tactics, such as television ads, trade show
marketing, press releases, online advertising, and event marketing.
o Section 9: Online Marketing Strategy - Like it or not, most customers go online these
days to find and/or review new products and/or services to purchase. As such, having
the right online marketing strategy can help you secure new customers and gain
competitive advantage most effectively allow you to reach your target customers.
o Section 10: Conversion Strategy - Conversion strategies refer to the techniques you
employ to turn prospective customers into paying customers.
VI. Organization and Management
Definition:
The Organization and Management section of your business plan summarizes the
information about your business' organizational structure, business members' duties and
expertise, as well as their education or qualifications. While business plan outlines vary, often
this section comes after the market analysis.
This section is especially important if you have a partnership or a multi-member limited
liability company (LLC). However, even in a single-person business, it doesn't hurt to
summarize how your business is organized and will run. Because it highlights the skills and
experience you and your organization has in the industry, it can be a great resource to refer to
when seeking publicity and marketing opportunities. It can be easy to forget an award or a
certificate, but if it's listed in the management section of your business plan, you can refer to it
when doing your media kit or pitching for publicity.
With that said, if you are starting a home business or are writing a business plan for one
that's already operating and you are the only person involved in the business, this section isn't
needed if you've already discussed your background earlier in the business plan
Content and Format:
Sections of the Organization and Management Part of Your Business Plan
Essentially, the Organization and Management section of your business plan covers two
main areas:
1. The Organization, or how your business is structured and the people involved
2. The Management Team, or details about what your team brings to the business
Within these sections, you have specific areas to cover about how your business is structured and
who's involved.

o Management Summary - In the opening of the section, you want to give a brief
summary of your management team, including:
 Composition and year experience (i.e. Our management team has over 20 years in
the widget industry.)
 Breakdown of management team in general terms (i.e. We have a CEO and two
managers reporting to him. The Project Manager will oversee the work of three
virtual assistants.)
o Organizational Structure - The organization section sets up the hierarchy of the people
involved in your business. It's often set up in a chart form. If you have a partnership or
multi-member LLC, this is where you indicate who is president or CEO, the CFO,
director of marketing, and any other roles you have in your business.
o The Management Team - This section highlights what you and the others involved in
the running of your business brings to the table. This not only includes owners and
managers, but also your board of directors (if you have one) and support professionals.
Start by indicating your business structure (i.e. partnership or LLC).
Owner/Manager/Members
Provide the following information on each owner/manager/member:
 Name
 Percentage of ownership (LLC or corporations)
 Extent of involvement (i.e. active or silent partner)
 Type of ownership (i.e. stock options, general partner, etc)
 Position in the business (i.e. CFO)
 Duties and responsibilities
 Educational background
 Experience or skills that are relevant to the business and the duties
 Past employment
 Skills will benefit the business
 Awards and recognition
 Compensation (how paid)
 How each persons' skills and experience will complement you and
each other
o Board of Directors Information - A board of directors is another part of your
management team. If you don't have a board of directors, you don't need this
information. But even a one-person business could benefit from a small group of
other businesses owners who might be willing to provide you with the feedback,
support and accountability that comes from an advisory board. This section provides
much of the same information as in the ownership and management team sub-section.
 Name
 Expertise
 Position (if there are positions)
 Involvement with the company
o Support Professionals - Especially if you're seeking funding, let potential investors
know you're on the ball with a lawyer, accountant, and other professionals that are
involved in your business. This is the place to list any freelancers or contractors
you're using. Like the other sections, you'll want to include:
 Name
 Title
 Background information such as education or certificates.
 Services provided to your business
 Relationship information (i.e. retainer, as-needed, regular)
 Skills and experience making them ideal for the work you
need
  Anything else that makes them stand out as quality
professionals to have helping you in your business such as
awards.
Writing a business plan seems like an overwhelming activity, especially if you're
starting a small, one-person business. But writing a business plan can be fairly simple and
straightforward. The point of this section is to be clear to yourself, and those who work
with you or for you, or will be funding you, who's involved and in charge of what, as well
as the background and skills that will be contributing to the success of the business.

VII. Technical and Manufacturing Plan

Definition:
A written document describing the nature of the business, the sales and marketing
strategy, and the financial background, and containing a projected profit and loss statement. A
business plan is also a road map that provides directions so a business can plan its future and
helps it avoid bumps in the road
Content:
Company - Titus Mold Manufacturing, Inc. designs prototypes and molds, which are used by
production manufacturers to fabricate consumer products. We are a start-up company that
developed and patented revolutionary design software called Virtual Design Center. Our initial
plan is to create a precision manufacturing facility to produce prototypes and molds for clients.
Our goal is to provide our customers with fast turnaround, exceptional quality, unparalleled
customer service, and competitive pricing.
Products and Services - We design and manufacture prototypes and molds. By utilizing Virtual
Design Center, we will work in real-time with our customers to meet their design needs, which
will reduce errors and detect design flaws early in the process. In turn, this will save the
customer time and money. We plan to position ourselves as a forward-thinking company that
continually invests in new ideas and technologies – unlike our competitors, which are similar
mold manufacturing facilities. Because of our unique software, sophisticated technology and
efficient processes, we will be in a position to potentially compete on price and quality. As this
manufacturing business plan will outline, our unique Virtual Design Center gives us a definitive
advantage.
Market Analysis - The U.S. manufacturing industry makes up a substantial portion of the GDP,
and the mold-manufacturing sector generates sales of more than $5 billion. Manufacturing drives
the U.S. economy more than any other industry. Within that enormous industry, we have
identified two strong markets with very high growth potential – automotive parts and medical
devices manufacturing. As new car companies respond to shifting consumer demands for more
fuel-efficient cars, and as the medical community develops new technologies, the need for new
parts, designs and molds grows.
Strategy and Implementation - To achieve our business goals, we will create a high-tech,
precision manufacturing facility and will implement highly efficient operations processes. We
plan to promote Titus Mold Manufacturing and our proprietary Virtual Design Software with an
aggressive, targeted marketing campaign. This will include a media campaign, print and online
advertising and a targeted direct-mail campaign. In addition, we will focus heavily on
establishing our presence within the industry at relevant trade shows.
Management - Our leadership team currently consists of Chief Executive Officer John Baker,
President Michael Smith, and Vice President Susan Jones. Additional key leaders will include
directors of finance, marketing and sales, human resources, information technology and
operations. While these positions remain unfilled at this time, we do have several extremely
qualified candidates interested in joining with us in this new venture.
Financial Plan - Our Company will earn revenue from the sale of design services and
manufactured molds. The attached Income Statement demonstrates that our gross profit margin
will exceed 72%, and we will achieve break-even with sales of $XXX,XXX. We expect to reach
profitability by the middle of Year 2.
Source and Use of Funds - Titus Mold Manufacturing, Inc. requires $4,450,000 to launch. At
present, we have raised $150,000 in venture capital funds. In addition, co-owners John Baker,
Michael Smith and Susan Jones have each invested $100,000 into the company. We are currently
seeking funds from outside investors and business loans. The start-up funds will be used to cover
the facility, build-out costs, equipment, software and initial operating costs including payroll,
taxes, and utilities.

A. Products/Services Description
Definition:
This is the part of your business plan where you will describe the specific products or
services you’re going to offer. You’ll fully explain the concept for your business, along with all
aspects of purchasing, manufacturing, packaging, and distribution. You’ll go over suppliers,
costs, and how what you’re offering fits into the current market and stacks up against your
competitors.
Content and Format:
While your product may be technical, don’t get caught up in complicated industry jargon.
Explain and describe what you’re offering in layman’s terms, so someone who isn’t familiar with
your business will understand and be excited about it. It may be necessary to give some basic
background if this is an area or industry people are unfamiliar with.
While you write up the Products and Services section of your business plan, keep your
reader in mind. Things that you might take for granted or know inside-out might not be common
knowledge to potential lenders or investors. As you write, avoid being too technical, assuming
too much knowledge from your readers, and using buzzwords.
You don’t want to come off as condescending, but you do want to make sure everyone
understands what you’re talking about. To see if you’ve succeeded, have some trusted people
who aren’t in your industry proof-read this section for you, and ask them to explain your product
or service in their own words, along with the benefits to using them.Here are the points you want
to write up in the Products and Services section of your business plan:
o The Product or Service Description - What is your product or service, and how
does it work? How does it benefit customers? How do you make it or how will you
get it made?
o Product Comparison - What makes this product or service unique or better than
what’s already available in the market? Why would someone choose to buy your
product or do business with you over someone else?
o Accreditations/Intellectual Property - Have you had the product tested or certified?
Gotten approvals from industry experts? Did you trademark, copyright, or patent your
product? These can add substance and credibility, so be sure to mention them.
o Lifecycle - Where are you currently with this product or service? Is it in the idea
stage or do you have a prototype? Have you produced some and are looking to
expand? Have you started offering this service already or are you still in the planning
stages?
o Pricing - How much will you charge for the products or services you’re offering?
Where does this fit in with what’s currently available?
o Sales and Distribution Strategy - How will you sell it? Will you market it online or
in retail stores? Have you lined up any vendors? How will you distribute it or deliver
the service you’re providing?
o Fulfillment -How will you fill orders or deliver the service? Will you manufacture
items yourself or outsource to someone else? Who will handle distribution, and how?
o Requirements - Will you need any special equipment or technology to provide your
product or service?
o Expansion - Do you envision future products or services as an extension of the
business once it’s successfully launched?
o Photos or Brochures - It’s beneficial to include a visual representation of your
offering. Photos or brochures would generally get put in the plan’s appendix, but you
would refer to them in this section.

B. Product/Manufacturing
Definition:
When a manufacturing company begins production of a new material, it has a choice as
to the manufacturing process it uses. The type of process depends on the facility, the staff, and
the information systems available. Each process has its advantages and some are best at certain
tasks, for example, large batches of finished goods, or small numbers of custom items. When the
decision is being considered about which manufacturing process to use, there are a number of
questions that should be asked; what are the volumes to be produced, what are the requirements
to make the product, and does the company manufacture a similar product?
There are a number of basic manufacturing processes that they can select from;
production line, continuous flow, custom manufacturing, and fixed position manufacturing.
Content and Format:
 Production Line - A production line is the traditional method which people associate
with manufacturing. The production line is arranged so that the product is moved
sequentially along the line and stops at work centers along the line where an operation is
performed. The item may move along some kind of conveyor, or be moved manually by
staff or forklift. For example, operations along the production line could include
assembly, painting, drying, testing, and packaging. If needed, some parts can be removed
from the production line and stored as semi-finished goods.

The production line manufacturing process is very suited to high volume

manufacturing of a single product or product group. For example, a production line may be
used to manufacture a range of vacuum cleaners, where the only difference between the
models is the color of the plastic assembly and the attachments that are included in the final
product.

There are disadvantages to using the production line manufacturing process. The fact
that the production line manufactures a single product or similar products limits its ability to
manufacture anything else. For example, if the company manufacturing vacuums wanted to
make kitchen mops, it would not be able to use the same production line. The second issue
with production lines is that there is a high cost involved in the initial setup of the production
line and it requires a large volume of goods to be produced to justify the capital investment.

 Continuous Flow - The continuous flow manufacturing process is similar to the

production line, but the products that are manufactured cannot be removed from the
production line and stored, but require to have been through each process. For example,
materials that are suited to continuous flow include chemicals, pharmaceuticals, and
plastics. The continuous flow process is more inflexible than a production line as it does
not allow for other materials to be produced on the line without significant changes and
the cost involved.
 Custom Manufacturing - If a company manufactures a wide range of products that can
be modified based on the customers' requirements, then a custom manufacturing process
is a good fit. The custom manufacturing facility has a number of skilled employees and a
range of equipment that can be used to manufacture and modify a wide range of items.
The facility should be set up with a number of dedicated areas such as a welding area,
lathe shop, paint spray area, and packaging area. The custom manufacturing facility is not
designed for high volume products but is ideal for customized products.

 Fixed Position Manufacturing - Fixed position manufacturing is different from other

manufacturing processes as it involves the finished product not moving from its fixed
position from the beginning to the end of the process. This is the method used in large-
scale manufacturing such as the manufacture of an aircraft or ship but is also used for
products that are being constructed in place for the customer, such as a conveyor system.
IX. Contingency Plans
Definition:
A contingency plan is a course of action designed to help an organization respond
effectively to a significant future event or situation that may or may not happen.
A contingency plan is sometimes referred to as "Plan B," because it can be also used as
an alternative for action if expected results fail to materialize. Contingency planning is a
component of business continuity, disaster recovery and risk management.
Content:
1. Develop the contingency planning policy statement. A formal policy provides the
authority and guidance necessary to develop an effective contingency plan.
2. Conduct the business impact analysis (BIA). The BIA helps identify and prioritize
information systems and components critical to supporting the organization’s
mission/business functions.
3. Identify preventive controls. Measures taken to reduce the effects of system
disruptions can increase system availability and reduce contingency life cycle costs.
4. Create contingency strategies. Thorough recovery strategies ensure that the system
may be recovered quickly and effectively following a disruption.
5. Develop an information system contingency plan. The contingency plan should
contain detailed guidance and procedures for restoring a damaged system unique to the
system’s security impact level and recovery requirements.
6. Ensure plan testing, training and exercises. Testing validates recovery capabilities,
whereas training prepares recovery personnel for plan activation and exercising the plan
identifies planning gaps; combined, the activities improve plan effectiveness and overall
organization reparedness.
7. Ensure plan maintenance. The plan should be a living document that is updated
regularly to remain current with system enhancements and organizational changes.

X. Appendices
Definition:
A business plan’s appendix is like its own mini library. It holds the entire plan’s
supporting documents in a clear, well-organized fashion. The appendix consists of an array of
documentation that ranges from receipts and bank statements to contracts and inventories. It
should be used on an as-needed basis and include only essential information.
Contents:
 Most of your business’ supporting information can be included within the body of the
business plan. Reserve the appendix for information that supports the business financials,
including tax returns, inventory estimates and personal and business credit history information.
Also use it for any general supporting documents that are longer than two pages, along with
formal contracts, supporting pictures and market research information.
In general, here are some of the documents you might think to include in your business
plan appendix:
 Charts, graphs, or tables that supplement information from other sections of your
business plan
 Any agreements or contracts that you have with clients or vendors
 Licenses, permits, patents and trademark documentation
 Product illustrations or product packaging samples
 Marketing materials
 Resumes for each of your executive team members
 Contracts and supporting documents for anything else
 Building permit and equipment lease documentation
 Contact information for attorneys, accountants, advisors, and so on
 Credit history
 Detailed market studies
Format:
Business plan appendix best practices
o If your appendix runs more than a few pages long, or contains a variety of documents,
you may want to consider adding a separate table of contents.
o If you do share confidential information within the business plan appendix, you will also
want to keep track of who has access to it. A confidentiality statement is a good way to
remind people that the content you are sharing should not be distributed or discussed
beyond the agreed parties.
o Given that the appendix is the last part of the business plan, it’s quite likely your readers
will skip it. For this reason, it’s important to ensure that your business plan can stand on
its own. All information within the appendix should be supplementary. Ask yourself: if
the reader skipped this part of my plan, would they still understand my idea or my
business model? If the answer is no, you may need to do some rethinking.
o Be sure to also include relevant information in the appendix of your business plan. It
should not be totally unrelated to the materials you’ve already covered.
o K.I.S.S. In case you’re not familiar with the acronym, it means “keep it simple, stupid.”
This is good general advice for your appendix. Keep it short. You don’t need to include
everything, just the relevant information that will give your reader greater insight into
your business, or more detailed financial information that will supplement your financial
plan.
ENTREPRENEURSHIP

Chezia Hariszylle Punsalang

Mike Kendrick Vista
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Dan Patrick Ceres
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Chriselle Nocite
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John Francis Espiritu
Noe Lynne Marvella