Papers Category:Business Administration Papers
- E-commerce Papers
Post Time:2006-10-19 11:30:00
When you sprout a good business idea when and how to put a dream into real action? To conduct business plan is a very important step. In the Harvard Business School Business Plan Competition, held every year in the MBA business plans were submitted to selected winners, writing a business plan is becoming important to the business school curriculum. Indeed, to predict the future is a difficult thing, none of us will not know what will happen tomorrow, but know that tomorrow will be different from today, the present and different from the past. Therefore, we can do is to plan to face these changes in order to be able to continually move forward, we can say plan is a survival strategy.
A complete business plan with market prospects request a product or service around a product or service, to complete a comprehensive, specific, in-depth business plan to describe the company's business opportunities and make recommendations for action. Business plan focused on specific strategies, objectives, plans and actions, for a non-technical people who are interested to be clearly legible. Readers of the business plan may include: I hope to absorb into the body of the object, potential investors, partners, suppliers and various policy institutions.
Content of business plan
A complete business plan generally include: executive summary, company profile, products or services, market analysis, competitors and marketing strategy, management team, financial projections, capital structure and appendices in nine areas. Here the content of the various parts of our simple description.
(1) Executive Summary
Is a brief description of the entire business plan.
Company overview, target market description and prediction, products and services, competitive advantages and competitive strategies, profitability forecasts, team overview, financial projections and so on. By looking at the executive summary, investors should be able to understand the general situation in the whole scheme in order to decide whether to read the entire contents of plan. Investors are not interested in the future be able to read the executive summary to give up further at all. Accordingly, the Executive Summary of the entire business plan is a key part of, in addition to succinctly describe the whole scheme, should try to highlight the most attractive business plan selling point, as far as possible aroused the interest of investors. The executive summary should generally not more than two in order to avoid resentment readers. (2) Company Profile
This section to introduce the company's main industries, products and services, the company's competitive advantage and the establishment of place of time, the stage of the basic situation, the company historical performance summary. In addition, you can elaborate further on the company's business objectives, business objectives, values and vision companies such basic questions, to give readers a clear idea of the company's business. A good business values can enhance the value of a business plan because the company's long-term success of the final analysis, a culture and philosophy of success. (3) The products or services
Introduced the company's products or services, describe the products and services use and relative merits of the patents, copyrights, government approvals and so on. This section should focus on analysis of the company's products or services possess distinctive characteristics and market positioning, so that investors are convinced the company to provide products or services have a strong appeal in the market can quickly capture the market share in the future. In addition, for the best technical companies, the company's R & D ability of some description, prove that the company has the capacity for sustained development. Because investors may be more long-term investment, he must believe the company has a sustainable development and transformation capacity to cope with market changes, will make a long-term investment decisions.
(4) market conditions
A clear description of market conditions the industry is successful, one of the key elements of business plan.
Because venture capitalists are usually looking for some market prospects, it is difficult to copy the business plan. This section must be on the company's market positioning, market capacity, competition, and their competitive advantage, estimated market share and sales, market development trend for a clear description of the data as far as possible be expressed in reference to the industry. The need for market segmentation, because as the division of labor in-depth, a single product can not be occupying a full market, so the time to write a business plan can not be a general description of the company's market position.
(5) competition and marketing
Analysis of existing and future competitors, their strengths and weaknesses, and the corresponding advantages and overcome the company's competitors method, the target market to make marketing plans, including the product or service pricing and distribution, advertising and promotion, planning and development planning, development status and goals, difficulties and risks, and so on. The status of competition in the industry for new enterprises to compete in the success or failure is critical, rivals in terms of scale, technology leadership and R & D, management capacity advantage may make subsequent entry into the strong barriers to entry may be reluctant to ended in failure. Therefore, in this section to the extent possible analysis of the strength of competitors, make sure the company can be found in future competition foothold.
(6) Management Team
An important figure in the company are described, including their positions, work experience, education and so on.
The company's full-time employees, part-time employees and which job vacancies. Excellent management team usually venture investors to assess the most critical factor in the project, as a first-class business ideas do not tend to operate first-class team will not be successful, and often the team is more important than creativity. For the introduction of the team focused on the success of their previous experience by highlighting their entrepreneurial spirit and excellent management capabilities, pay attention to the division of labor among team members and complementarity. Personality charm of a management team more accessible to investors of all ages.
(7) financial projections
Company's current financial statements, annual financial statements for the years ahead forecast is mainly profit forecasts and cash flow, investment, exit way (publicly traded, the stock repurchase, sale, merger or consolidation). Financial projections must be projected to the company's break-even year after the company told investors about the profitability of the time. Financial projections should be based as much as possible to the reality, mainly concentrated in the past two years forecast. Reposted elsewhere in the paper for free download http://eng.hi138.com
(8) Capital Structure
Company's current and future fund-raising and use of company financing, financing, capital structure before and after the table.
To support the above information, information: the management resume, technical information, sales manuals, product drawings, the media coverage of this company, as well as others who need an introductory statement places.
Business plan writing process
A good business plan, including appendices, including a general 20-40 pages long, too long a business plan but will people lose patience. The entire business plan writing is a gradual process, can be divided into five stages.
Phase I: the concept of detailed business plan, preliminary idea of the scheme.
The second stage: market research, and industry professionals within the business and contacts to understand the entire industry market conditions, such as product pricing, sales channels, customer and market development and changes in the distribution of the trends and other factors. Can send out questionnaires on their own, if necessary, can also turn to market research firm.
The third stage: a competitor from the survey and analysis of your potential competitors, competition in the direction of the industry. Distribution problems and how? The possibility of the formation of a strategic partner? Who are your potential allies? Prepare a 1-2 competitors in the investigation summary. Phase IV: financial analysis, including the company's valuation. Must ensure that all possibilities are taken into account. Financial analysis to quantify the company's revenue goals and corporate strategy. Require detailed and accurate account of the funds needed to achieve the company.
5th stage: writing a business plan with the changes to the information collected to develop the company's future development strategy, the information related to the above structure according to our adjusted to complete the business plan writing. After the project's completion is still a viable plan can be further argued, and after all the information accumulation and changes in the market continuously improve the project.
Five common shortcomings of
A successful business plan should have a clear structure, style, consistent, easy to understand, avoid using vague terms, with artistic pages and so on. Also in the process of writing but also to avoid some of the common ills
Ills a: self-centered, non-free-loss, on the industry's lack of analysis of market conditions, many people in the process of making a business plan is often from their own point of view, long-winded in explaining himself to make what happens on their own products and services have no market, product sales channels, how the lack of the necessary analysis. Customer is to know God, only a customer-centric products and services will get people's approval. At the same time, non-industry environment and market analysis gives the impression that the planners have little understanding of the industry itself, so that greatly reduced the confidence of investors. Ills two: over-optimistic about the market, or entering a congested market will pick up some of the projects are a far cry from some industry-standard data to predict the company's future market share, come to overly optimistic results. Or enter a congested market, to pay a non-professional business plan.
Ills 3: No analysis of competitors in the normally should analyze competitors, including existing businesses within the industry, the Company's some alternative products and new technologies, upgrading and so on. In today's market, competition is always there, not analysis of competitors in the company's future would be a lack of awareness of the crisis facing.
4 ills: the lack of a viable, profitable business model a lot of business plans to run the company's future source of revenue is very vague descriptions, like the beginning of the year when the Internet through high Quotes storytelling to gain access to investors, have few opportunities to recognition, robust investor after all are most concerned about is still the company's future earnings prospects.
Ills 5: Financial forecast not to break-even year despite projections of future financial condition is highly subjective, but can tell the investors may be enough to forecast the profitability of the time is still very necessary. In many business plans, some only to inform investors of the financial plan over the next 12 months, the use of funds, which is obviously not enough. Gives the impression that the company's prospects uncertain, the present is always in out of phase.
Information Age technology with each passing day, the company in which the market environment is changing rapidly, writing a good business plan does not guarantee success of the company, and because changes in the environment so that made the original business plan must be constantly adjusted, the original business plan are inevitable in the process of implementing them beyond recognition. However, there are commercial activities planned than unplanned commercial activities closer to success, and it is as a management tool where the role of the business plan. Reposted elsewhere in the paper for free download http://eng.hi138.com