PriceWaterHouseCooper Business Plan

PriceWaterHouseCooper Business Plan - D eveloping the...

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eveloping the Business Plan for Your Rapidly Growing Company D D
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A. BUSINESS PLAN BASICS Goals For rapidly growing companies, a business plan is a key management tool that can be used for a variety of reasons: q Attract debt or equity financing q Promote relationships with joint venture partners and large customers, suppliers, and distributors q Provide strategic guidance, operating tactics and objectives q Furnish a standard against which to judge future business decisions and results. q Evaluate strengths and weaknesses and identify viable alternative strategies q Establish the operational and financial structure of a management buy-out Regardless of the exact impetus, a business plan is a fundamental requirement for all start-up and rapidly growing businesses. Due to the array of business plan goals and the endless variety of circumstances, there is no such thing as a standard business plan. Furthermore, a business plan should not be static. Over its lifetime, a business typically goes through several stages. Although the number and names of these stages vary by economist, it is safe to speak of at least three stages: start-up, growth, and maturity. Generally, each stage in the life of a business represents an increase in revenues and employees -- and perhaps in product lines, assets, etc. -- and requires a greater delegation of routine functions. The transition to a new stage represents a critical phase in the life of a business. This transition, along with changes inherent in a business's growth, changing market conditions, evolving company strategies, and actual financial results, signals the need to update the business plan. The outline presented below has been formulated based on PricewaterhouseCoopers LLP's experience with start-up ventures and rapidly growing businesses. You will need to make certain modifications to your business plan depending on whether your company is in the technology, manufacturing, service, retail or export industry. However, the basics are the same. Regardless of your business, it is important to remember that this outline should be used as a guide, not as a rigid, all- encompassing format. i Developing The Business Plan For Your Rapidly Growing Company
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A Few Generalizations About Business Plans q The executive summary is critical: This two to three page summary of the business plan is what most investors turn to first; it often determines whether they will read the remainder of the plan or decline the opportunity. This section should always be written last. q Clarify the focus: The plan should be clear about the products to be developed and the markets to be addressed by the business. Try to avoid saying that the company will develop a widget and sell it to General Motors and the grocery store down the street without explaining how it will actually be done. q
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This note was uploaded on 05/13/2008 for the course BUAD 301 taught by Professor Lieberman during the Spring '08 term at USC.

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PriceWaterHouseCooper Business Plan - D eveloping the...

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