Business Plan – The business plan describes the opportunity that you have uncovered and how you will take advantage of that opportunity. It is a form of storytelling that will persuade readers of the feasibility of the idea. One of the most significant reasons to write a business plan is that it requires you to participate in a laborious and often eye-opening process that is a critical phase before launching a new organization. You must respond to difficult queries about the nature of the need for the product or service, the intended target customer, your differentiation strategy, how long will it take before you are profitable and realize positive cash flow and how will you fund the beginning stages of growth.
Plan Details:
Opportunity: What need are you solving for which consumer?
What problems are you solving? What is the size of your market? What indicators are you seeing in the external environment that will sustain the growth?
Product/Service: Describe the product or service? What is your unique selling proposition (why would consumers choose your product over the closest competitor)?
Value Proposition: What value are you giving the target customer that others do not provide?
Marketing Strategy: What is your marketing communication strategy and how will you reach your target customer?
Competitive Environment: Who are the main competitors? What core competencies do you possess that others may not?
Management: Why will investors/suppliers/bankers be confident in your ability to be successful in this venture?
Financial: How will you determine projected sales? How long will it take to be profitable? When will the company become cash positive?
Funding: How much cash will you need to fund the startup? And how long will you be able to operate before even making $1 in sales.