Products and services plan this section describes the

 Product(s) and Services Plan – This section describes the product(s) and services as well
as points out any unique features of those products and services. The section includes
products and services; features of the products and services that provide a competitive
advantage; available legal protection such as patents, copyrights, trademarks; and
dangers of technical or style obsolescence.
 Marketing Plan – This part of the business plan starts with market research, which
becomes the basis for the rest of the section. This section should include: analysis of the
target market and profile of the target customer; methods of identifying and attracting
customer; selling approach for the target customer; the type of sales force required;
distribution channels; type of sales promotions and advertising that will be used; and
credit and pricing policies.
 Management Plan – The active investors, management team, and directors are
examined in this section (including their experience and the abilities they bring to the
business); since this is a “mock” project, I am looking for you to name the management
positions and their responsibilities. In addition, resource people such as a banker, a
lawyer and any other individuals who might be helpful to the business along with their
qualifications must be listed in this section.
o This section should also include plans for recruiting and training
employees.
o It should also include strategic alliances, which have been or are planned
for the business.
 Operating Plan – This section includes the type of manufacturing or operating system to
be used by the business; describes the facilities, labor, raw materials, and product
processing requirements.
o Include quality control methods, procedures to control inventory and
operations, sources of supply, and purchasing procedures.
 Financial Plan – This section must begin with a brief narrative describing the financial
documents and includes the following items:
o Pro forma financial statements for three years (start up through the third
year of business)
 Income statements
 Balance sheets
 Cash flow statements
 Cash budgets (monthly for the first year and quarterly for the
second and third year)
 Break-even analysis of profits and cash flows
o Planned sources of financing

 Contingency Plans – This part of the plan looks at critical risks and
assumptions for the business. This is the section where you anticipate
contingencies and indicate alternate plans for each contingency.
o At least two alternate plans must be developed for each risk and/or
assumption . What, if any, negative factors must be provided for as you plan for
the future of the business and work toward the goals established in the Visions
Statement?