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How to Write a Business Plan-Part 1

By Davies Zhai - Jetek Staff

Section 1: Executive Summary

2. It provides a busy reader with everything that needs to be known about the new venture’s distinctive nature.

3. An executive summary shouldn’t exceed two single-spaced pages.

4. Even though the executive summary appears at the beginning of the business plan, it should be written last.

1. This section should begin by describing the industry the business will enter in terms of its size, growth rate, and sales projections.

2. Items to include in this section:

Industry size, growth rate, and sales projections.

Industry structure.

Nature of participants.

Key success factors.

Industry trends.

Long-term prospects.

1. This section begins with a general description of the company.

2. Items to include in this section:

Company description.

Company history.

Mission statement.

Products and services.

Current status.

Legal status and ownership.

Key partnerships (if any).

Section 4: Market Analysis

1. The market analysis breaks the industry into segments and zeroes in on the specific segment (or target market) to which the firm will try to appeal.

2. Items to include in this section:

Market segmentation and target market selection.

Buyer behavior.

Competitor analysis.

Estimate of the firm’s annual sales and market Share.

Section 5: The Economics of the Business

1. This section addresses the basic logic of how profits are earned in the business and how many units of a business’s profits must be sold for the business to “break-even” and then start earning a profit.

2. Items to include in this section:

Revenue drivers and profit margins.

Fixed and variable costs.

Operating leverage and its implications.

Start-up costs.

Break-even chart and calculations.

Section 6: Marketing Plan

1. The marketing plan focuses on how the business will market and sell its product or service.

2. Items to include in this section:

Product, price, promotions, and distribution.

The sales process (or cycle).

Sales tactics.


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