BPPCH5 - Focusing your Business Plan (Focus business plan...

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Focusing your Business Plan (Focus business plan sections need to meet specific needs) - Plan for pioneering a business: - A firm whose product or service is new to the industry or is itself creating a new industry; new to everyone - Greatest problems 1. Helping people understand how it works 2. Showing them how they would use it 3. Estimating how many people would want it 4. Estimating how much they would be wiling to pay for it - Pre-selling, pilot tests, or test marketing (selling your product or service in a limited area for a limited time) is valuable (if 100 people test, 10 people purchase product: it is a success) Plans for a new entrant business: - A firm whose product or service is established elsewhere, but is new to this market; when your product/service already exists but your firm is the first of its kind in your market. - Ex. Starbucks ($5 Cup of Coffee) - Make the product/service more familiar by detailing how its used, and how its done in other markets similar to yours. Plans for an existing business: - An existing business already has the foundation of knowing the history, existing market, and financial track record - Projections about future market, sales, and profits are built on history - Suppliers and trade associations can provide more in-depth information on market shares and competitors - Showing how you plan to protect and make additional profits from your intellectual property strengthens the plan Plans for a business with significant government involvement: - Business include salvage yards, garbage dumps, companies using toxic chemicals, nursing homes, and day cares - Build a plan that anticipates delays, and works around them Once you have written the complete business plan, create a special purpose version to meet needs of variety of people. Special purpose types include: Screening Plan - Also called mini-plan gives the basic overview of the firm and a detailed look at the financials - Common to send to professional funding sources, such as private bands, investment clubs, or venture capital firms - Consists of cover letter, title page, executive summary, and financial sections
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BPPCH5 - Focusing your Business Plan (Focus business plan...

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