Lesson 3: The Business Plan Contents (I): Introduction, Executive Summary, and Proponents Flashcards
serves as the “birds-eye view” of your plan.
Business plan introduction
It is written at a high level while not going into details.
Business Plan introduction
It covers the description of the business, the goals, and why the business is a good venture to start
Business Plan introduction
Business Plan Introduction
Two Main Components:
The Business Concept and Model
The Business Goals
should have the essence of the business in a short but powerful manner. It emphasizes the value of the product to be offered to the target customers who would most likely buy it.
The Business Concept
is a formula on how the business plans to make money out of business.
Business Model
Four Areas of Business Modelling
Raising revenue
The cost of the enterprise products and other costs of doing business
Major investments of the enterprise
Financing the investment
show the long-term and future prospects of the enterprise.
Business Goals
It is composed of the vision, mission, objectives, key results area, and performance indicators.
Business Goals
The Business Goals
4 sub topics
KRA - key result area
Goals
Objectives
KPIs- Key Performance Indicator
KRA stands for
Key Result Area
They are the broad areas in which you are expected to deliver results (e.g. customer service, quality, safety).
KRAs
Key Result Areas
are the specific outcomes that you are trying to achieve within each key result area, within a given time period.
Goals
are the foundation of your plan and need to be set at the start of the planning process - after all, you need to know your destination in order to a figure out how to get there.
Goals
are sub components of a goal.
Objectives
For example, to achieve one goal there may be four major pieces of work to be completed. Completion of one of these pieces of work would be an ____.
objective
can be set later in the planning process once you have defined all of the tasks to be completed.
Objectives
KPI stands for
Key Performance Indicator.
are metrics that are used to monitor performance in key areas on a daily, weekly or monthly basis.
KPIs
Key Performance Indicators
tell you wherever you want to go;
Goals
tell you precisely the way to get there.
objectives
will increase your effectiveness;
Goals
back your goals, and cause you to be more economical.
objectives
are usually represented in words;
Goals
usually go together with numbers and specific dates.
objectives
Why should you have measurable goals and objectives in your business plan?
Always think of a goal that is measurable. By establishing measurable goals, you’ll be able to TRACK YOUR PROGRESS and ACKNOWLEDGE RIGHT AWAY ONCE YOUR EFFORTS ARE GOING OFF TARGET.
Example: Writing Goals and Objectives
Situationer:
You want to establish high-quality, delicious, and visually stunning desserts that cater to the growing demand for unique, customizable, and healthier sweet treats.
KRA 1: Marketing & Brand Awareness
Goal: Establish Strong Brand Identity
Objectives:
1. Increase brand visibility on digital platforms and attract new followers.
2. Create engaging marketing campaigns and partnerships to position Sweet Delights as a premium brand in the dessert industry.
KPIs:
- Social Media Growth: Increase followers on Instagram, TikTok, and Facebook by 30% within the first year.
2. Brand Engagement Rate: Achieve an engagement rate of 5% or higher on social media posts.
3. Influencer Partnerships: Secure 3 influencer collaborations per quarter to boost brand reach and credibility.
summarizes the necessary details of the business plan for its readers.
executive summary
It is timesaving for readers, for they are able to get the gist of the business plan.
Executive Summary
Contents of the Executive Summary
For startup business, one of the main goals is to PURSUADE BANKS, INVESTORS, or VENTURE CAPITALISTS TO TAKE a POSITION IN YOUR BUSINESS by PROVIDING STARTUP CAPITAL in the TYPE OF DEBT OR EQUITY FUNDING.
Contents of the executive summary
9 Subsequent sections in a startup business:
The Business opportunity
Taking advantage of the opportunity
The target market
Business model
Marketing and Sales Strategy
The competition
Financial Analysis
Owner/Staff
Implementation Plan
it describes the need to the target market
business opportunity
you need to explain how your business will serve the market.
Taking advantage of the opportunity
you need to describe your market based on the analysis that you conducted
The target market
you need to describe and think of products or services and justify in what way it will make it appealing to your target market
Business model
have a brief outline of the marketing strategy for your products or services that you will offer
Marketing and sales strategy
describe your competition and your strategy for getting market share. Also, identify your competitive advantage
The competition
summarize the financial statement together with projections for a minimum of three years
Financial analysis
Describe the owners and also the key employees and the experience they convey to the venture
Owner/Staff
as an entrepreneur, you need to define the schedule for taking your business from the planning stage to its formal operating.
Implementation Plan
Remember
In writing your executive summary,
you already NEED TO CAPTURE THE AUDIENCE’S ATTENTION IMMEDIATELY so that they are MOTIVATED TO READ the REMAINDER OF THE DOCUMENT.
Tip
You need to end your business plan’s executive summary with a
STRONG AND CLINCHING CLOSING SENTENCE that will JUSTIFY WHY YOUR PROPOSED BUSINESS is a WINNING ONE.
Example: Executive Summary of a Bakery
Johanne’s Bakery (JB) is a starting coffee and cake shop located in San Pedro City, Laguna. JB is expected to catch the interest of its loyal and regular customers with a variety of coffee, pastry, and cake products.
The company plans to have a strong market established in the town because of its mild competitive climate and our partner’s experience in the area.
JB aims to offer its bread and pastry products at a competitive price to meet the needs and demands of the lower- to middle-income local market area residents and tourists. Because of its variety of product offerings, Johanne’s Bakery will be the no. 1 coffee and bakeshop in the city.
What are the 5 things that you need to keep in mind when writing your executive summary?
Focus on providing a summary.
Keep your language sturdy and positive.
Keep it short.
Polish your executive summary.
Put yourself in your readers’ place.
What are the 5 things that you need to keep in mind when writing your executive summary?
Focus on providing a summary.
Keep your language sturdy and positive.
Keep it short.
Polish your executive summary.
Put yourself in your readers’ place.
4 types of stakeholders
Resource mobilizers
Technology Providers and Applicator
Top management
Operations and Support Team
They are the investors who are willing to take a position within the business.
They are the ones who will share in the capital of the business
Resource Mobilizers
They are the ones who can think about the technologies that the business needs.
They are also the ones who can analyze if the budget is enough to make use of technologies and if there’s enough funds that they can use to acquire it.
Technology Providers and Applicator
They are the ones who can think about the technologies that the business needs.
They are also the ones who can analyze if the budget is enough to make use of technologies and if there’s enough funds that they can use to acquire it.
Technology Providers and Applicator
These leaders will lead their members.
However, having leaders doesn’t mean that other members can’t participate. Because as a team within the business, the suggestions and approval of every individual are extremely necessary.
Top Management
These are members that will create the main product. Others will work for the implementation of the business and might operate the institution.
There are also members who can work as the advertisers of the business.
Others can be the ones who will become sellers, cashiers, and other support staff of the business.
Operations and Support Team
These are members that will create the main product. Others will work for the implementation of the business and might operate the institution.
There are also members who can work as the advertisers of the business.
Others can be the ones who will become sellers, cashiers, and other support staff of the business.
Operations and Support Team
Remember
Each of the proponents has something to contribute, and they can be divided based on their capabilities, skills, and interests.
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