Entrep: Chapter 1 Business Planning

business plan

business plan

guide of entrepreneurs throughout any business endeavor

purposes of a business plan

• entrepreneur's navigational course • serves investors and cautious financiers • managers and staff organizational strategies

Contents of a Business Plan (1 - 5)

• Business Concept and Business Model

1. Business Goals: Vision, Mission, Objectives

2. Executive Summary

3. Business Proponents

4. Target Customers and Main Value Proposition

5. Market Demand and Supply, Industry Dynamics, and Macro Environmental Factors

Contents of a Business Plan (6 - 10)

6. Product Service Offering

7. Enterprise Strategy and Enterprise Delivery Strategy

8. Financial Forecast

9. Environmental and Regulatory Compliance

10. Capital Structure and Financial Offering

business concept

contains the essence of an enterprise and stresses the value of the product offering to their target customers

business model

• formula on how the enterprise plans to make money • translated from the product concept

Four Areas of Moneymaking

revenues, cost, investments, and finance/funding

business goals

• show the future and long-term prospects of the enterprise • mission, vision, objectives, result, and performance indicators

executive summary

the synthesis of the entire business plan that summaries contains everything that is relevant and important

enterprise strategy

builds and develops the game plan for attaining competitiveness

enterprise delivery system

the entire process of converting input resources into output outcomes

target market

a group of customers with shared demographics who have been identified as the most likely buyers of a company's product or service

target customers

take into regard sufficient size, paying capacity and interest to purchase

main value proposition

unique selling proposition of the enterprise

Social environment

the demographics and cultural dimensions that govern the relevant entrepreneurial behavior that dictate the major parameters of market behavior

• structure • social status • dynamics of the population • the people's beliefs, tastes, customs, and traditions

Political environment

• defines the governance system of the country or the local area of business • drives the interest and foreign exchange rates • laws, rules, and regulations on allowable and disallowable business practices

Ecological environment

includes all natural resources and the ecosystem that defines the habitat of man, animals, plants, and minerals

Technological environment

makes or breaks competing participants in any industry