The Business Plan
The descriptions of the key components of a business plan and notations regarding where this book provides additional information to help students develop their business plan:
Executive summary It is a condensed, concise short summary of the important aspects of the plan idea.
- The opportunity and the idea (Chapters 3, 4 & 5) It describes how the entrepreneurial opportunity is spotted and developed into a business idea.
- The industry, the firm and its products or services (Chapters 5 & 12) It provides in-depth analysis of the industry, the strategic positioning of the firm and the importance of its products or services.
- Management summary (Chapters 6 & 18)Entrepreneur(s)/owners(s) must show the management team capabilities in creating and managing the firm.
- The legal form and the legal requirements (Chapters 7 & 8) It shows the legal structure of the new firm and the legal requirements of owning, establishing and operating it.
- Market identification and analysis (Chapters 9 & 10) It determines the attractiveness of the industry as a “home” for a new business and identifies possible niches for the new firm.
- Financial planning (Chapters 10, 11, 15 & 17) It shows the sales forecast and expected profit, expenses analysis, assets needed and the new firm’s budget.
- Location analysis (Chapters 12 & 13) It determines the characteristics of the ideal location and describes the site and the layout factors.
- Marketing plan (Chapters 14 & 15) It explains the firm marketing strategy which enable it attract customers and beat competitions.
- Operation management (Chapter 16) It shows the firm’s efficiency in producing the goods and services. It explains the firm’s production facilities and plans, purchasing policies and inventory management.
- Monitoring and control (Chapters 19) It keeps the firm safe of the expected risk that can be found in areas such as finance, security and quality.