Successful business models begin with a good
, which is “a detailed written
statement that describes the nature of the business, the target market, the advantages the business
will have in relation to competition, and the resources and qualifications of the owner(s)”
(Nickels, McHugh, and McHugh 2013, 163).
To develop a good business plan, Brown and Clow (2008, 83) recommend that entrepreneurs
should use a checklist to organize their thoughts and ensure they consider the various issues
involved in setting up a business. This checklist should consider variables such as:
The goods and/or services to be provided by the business.
The reasons why these goods and/or services are needed in the marketplace.
The costs to produce these goods and/or services.
The number of employees needed to operate the business.
The facilities, equipment, and other resources needed to operate the business.
The licenses, permits, and other legal documents required to start the business.
The primary competitors already providing the same or similar goods and/or services in
The funds needed to start the business.
Briefly outlines the business plan, including a description of the business and its major
goals and objectives (Nickels, McHugh, and McHugh 2013, 165).
BUSINESS BACKGROUND AND DESCRIPTION
Provides details about the goods and/or services the business will offer, and the business’
size, scope, and type.
VISION AND MISSION STATEMENTS
“establishes the scope and purpose of a company and reflects its
values and beliefs,” while the
“expresses the specific aspirations of a
company, the major goals it will try to reach” (Brown and Clow 2008, 84).
In this section, the business plan will provide information about the qualifications and
experience of the managers who will be involved in operating the business.
This section expands on the information about the management team by providing details
about the employees who will be hired by the business. This will include job descriptions
and information about the qualifications and experience of the employees who will fill
each job. This section will include information to explain why the business will be set up
as a sole proprietorship, partnership, or corporation and how that impacts the number of
Gives information about the industry, such as telecommunications, that the business will
function in. Includes details about competitors as well as trends and growth in the
industry (Brown and Clow 2008, 85).