COMM 320 - Business Plan Project

The Business Plan:

Subsequently, the group will write a complete business plan (an outline is provided on the
following two pages) describing the start-up or expansion of the business, covering a period of
the next three years. It is not necessary that the entrepreneur wants to grow expand or
diversify. !he business plan will be based on the assessment of the group for the potential
growth expansion diversification for the business.
"s a guideline the growth expansion diversification should fulfill the following criteria#
!here is a mar$et driven need for new products services.
!here is a potential for profitability % the mar$et si&e should be sufficient.
!he entrepreneur should have the resources (s$ills, money, and experience) to ma$e
this a reality (even if it is not necessarily an idea they want).
!he growth expansion diversification should fit within the scope of the school term
(don't select something that will ta$e ( months to research).
"lso, remember that it is a business plan that the group will be writing, not )ust a concept idea
paper. !he difference is that the business plan requires research, detail, and completion, to the
point where the start-up expansion is ready for implementation* whereas, a concept paper
could )ust be an idea. !he group needs to $eep in mind the semester timeframe.
Class Presentation:
!he business plan will be presented sometime during the last two sessions of the course, at
which point it should be very near completion. !his presentation is a formal presentation by the
group (+,--. minutes, with all group members participating). !he final presentation is essentially
a concise presentation of the business plan.
Business Plan Outline:
!he business plan should be at least -. pages of written text* there may also be small tables,
illustrations, charts, etc. "ny large graphics should be placed in the appendices. !he pro-forma
/inancial Statements should be under a separate tab. "ll other supporting information, research
documentation, any surveys, illustrations or graphics should be in the appendices. !he
business plan for this class is based on a generic outline#
+. 0over 1etter# !his personali&es the plan* in this case the letter is addressed to me,
indicating that the business plan is to fulfill academic requirements, and a request for
feedbac$ about the business.
-. !itle 2age# !his should be consistent with the loo$ of the business, including the name
and logo, and an appearance that fits the image of the business.
3. !able of 0ontents
4. 5xecutive Summary# !his presents the highlights of the business plan and must grab
the attention of the reader.
,. 0oncept 6oals and 7b)ectives#
8riefly, the original idea, the product service, and goals and ob)ectives*
!he growth expansion diversification concept*
!he management team (responsibilities, s$ills, bac$ground).
6. Industry 9ar$et "nalysis#
Industry overview, general characteristics, mar$et gaps, trends, product life cycle*
Industry $ey success factors*
/orces, competitive, technological, government*
:esearch on your target mar$et*
9ar$et potential, competition*
Summary - the window of opportunity.
;. 9ar$eting 2lan#
9ar$eting Strategy*
!he intended niche (mar$et segment)*
<our =.S.2. (unique selling point), any competitive advantage*
9ar$eting 9ix (42's)*
:evenue pro)ections in brief.
>. 7perations 2lan (mostly narrative % lin$ to appendices)#
?uman :esources ($ey people)*
!he organi&ation structure, and legal status*
2roduct Service /low charts*
2roduction capacity*
/acilities (1ayout if applicable)*
@ey supplier relationships*
Scheduling*
Implementation time-line.
2
(. !he /inancial 2lan#
Start up funds required, and source*
!he deal structure, if applicable (changes in ownership, etc.)*
9a)or assumptions, :evenue 2ro)ections repeated with more detail*
:is$ 9anagement, contingency plans*
Aiscussion of 0ash /low*
Aiscussion of Income Statements*
Aiscussion of 8alance Sheet*
Aiscussion of Sensitivity "nalysis*
Aiscussion of 8rea$-5ven "nalysis*
Aiscussion of :atios.
+.. /inancial Statements (pro-forma), under separate tab#
:elevant BCotesD section explaining $ey points*
7pening 8alance Sheet*
2ro-/orma statements % 2ro)ected into the future#
9onthly 0ash /low (<ear +, -, 3) on 3 sheets*
Income Statements (<ear +, -, 3) on + sheet*
8alance Sheets (<ear +, -, 3) on + sheet (if possible)*
Sensitivity "nalysis % <ear + Income Statement (7ptimistic, :ealistic, 2essimistic) on
+ sheet*
8rea$-5ven "nalysis (8ased on :ealistic scenario)*
"ppropriate :atios.
++. "ppendices#
:esearch information, actual pages from articles, etc.
2rimary :esearch (surveys, etc.)
"ll other research (Include itE)
0harts, graphs, etc.
:esumes*
/acility 1ayout*
/low 0harts*
7rgani&ation 0hart*
2atents, copyrights, illustrations of prototypes*
"nything else, if you are not sure % include itE
Important Note: !he entrepreneur can most certainly be a family member or friend,
consider someone who will be accessible for an initial interview, and who will perhaps
provide additional information beyond that. :emind the entrepreneur that there is no
requirement to provide any confidential information* after the first interview, the group
can have some flexibility with the growth expansion diversification concept.
"lso, in exceptional cases, any student who clearly demonstrates that they have already
started wor$ing on their own business plan for a business they intend to actually open,
may be authori&ed (as part of a group) to write and submit a business plan on that
business. It will be up to the student to provide sufficient information on the steps that
3
they have already ta$en to develop the business. !his will be initiated only with the prior
approval of the instructor.
4