Descriptive
This section sets the foundational narrative of the business plan, articulating the core of what the business is about. It includes the Mission and Vision Statements, defining the company’s purpose, goals, and aspirational future. This section serves to align stakeholders with the company’s ethos and long-term direction.
Mission Statement
A mission statement is a brief description of an organization's fundamental purpose, outlining its goals, ethical approach, and core values. It is important because it guides the organization's strategies, communicates its purpose to stakeholders, and helps align internal efforts towards a common goal.
Vision Statement
A vision statement is a forward-looking declaration that outlines an organization's future goals and aspirations, providing a clear and inspirational long-term direction. It is important because it serves as a motivational guide, influencing decision-making and shaping the strategic planning of the organization.
Strategy Assesment
A comprehensive evaluation of the business’s strategic positioning, this section delves into various analytical frameworks like SWOT, PESTEL, and Porter's Five Forces. It encompasses Business Phases, Stakeholders, Pain Points, and the Strategy Canvas, offering a detailed exploration of internal capabilities and external environments, setting the stage for informed strategic decision-making.
Business Phases
Business Phases refer to the distinct stages of development and growth that a business undergoes, from inception to maturity.
Business Stakeholders
Business Stakeholders are individuals, groups, or organizations with a direct or indirect interest in the business and can affect or be affected by its activities.
Pain Points in Business
Pain points refer to specific problems that prospective customers of your business are experiencing.
SWOT Analysis
SWOT Analysis is a strategic planning tool used to identify and evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.
Porter's Five Forces
Porter's Five Forces is a framework for analyzing a business's competitive environment and identifying the level of competition within an industry.
VRIO Analysis
VRIO Analysis is a strategic tool used to evaluate an organization's resources and capabilities to discover competitive advantages.
PESTEL Analysis
PESTEL Analysis is a strategic tool used to analyze the macro-environmental factors that can influence an organization's operations and performance.
Strategy Canvas
The Strategy Canvas is a visual tool used in strategic management to understand the current competitive position of a company and explore new possibilities for differentiation.
Business Roadmap
A roadmap is a strategic plan that outlines a business's vision, objectives, and the steps needed to achieve them over time.
Allocation of Funds
Funding Allocation is the process of assigning financial resources to different areas of a business to support its strategic objectives and operational needs.
Marketing
Focused on how the business plans reach its market and audience, this section outlines the Competitive Advantage, Marketing Strategy, Target Client Groups, and Competitor Overview. It’s dedicated to presenting a roadmap for brand positioning, market penetration, and competitive analysis.
Competitive Advantage Definition
Competitive advantage refers to the attributes that allow an organization to outperform its competitors.
Marketing Strategy
Marketing Strategy is a comprehensive plan formulated to achieve specific marketing goals and objectives.
Target Market
Target client groups are specific segments of the market that a business plans to serve and focus its products, services, and marketing efforts on.
Competitive Analysis
A Competitor Overview provides an analysis of other businesses that offer similar products or services in your market.
Market Estimation
This section provides an analytical view of the market landscape. It includes Market Overview, Target Users, and the SAM/TAM/SOM analysis, along with Product Pricing strategies. It’s essential for understanding market size, potential growth areas, and pricing models, crucial for strategic market planning.
Market Overview
A Market Overview provides a comprehensive analysis of the industry and market in which your business operates, including size, growth, trends, and key players.
Target Audience
Target Users are the specific group of individuals or organizations that a business aims to serve with its products or services.
Market Size & Business Potential
SAM (Serviceable Available Market), TAM (Total Available Market), and SOM (Serviceable Obtainable Market) are metrics used to quantify the market opportunity for a business.
Product Pricing
Product Pricing involves setting the right price for your product or service, balancing between cost, value to the customer, and market conditions.
HR
Detailing the human capital of the business, the HR section covers the Organizational Structure and the Founder Team. It outlines how the company is organized, the roles and responsibilities within it, and the key personnel driving the business forward.
Organizational Structure
Organization Structure refers to the system of hierarchy and functional distribution within a company, defining roles, responsibilities, and lines of authority.
Founder Team
The Founder Team refers to the group of individuals who initiate and lead the establishment and development of a business, bringing together their vision, expertise, and leadership.
Tasks Planning
This practical section breaks down specific tasks and activities across various phases of the business. It includes General Tasks, Marketing Tasks, and phase-specific tasks, ensuring that every stage of business development is carefully planned and executed.
General Tasks
General Tasks are the various activities and responsibilities undertaken by a business to achieve its operational and strategic goals.
Marketing Tasks
Marketing Tasks are specific activities and initiatives undertaken to promote a business’s products or services, enhance brand visibility, and drive sales.
Business Development Phase Tasks
Business Phase Tasks in a business plan outline the specific activities and objectives to be accomplished during each distinct phase of the business’s development and growth.
Risks
A crucial part of the plan, this section assesses various risks the business might face, including Operational, Regulatory, Strategic, Finance, and Other Risks. It provides a comprehensive look at potential challenges and prepares the business for effective risk management.
Operational Risks
Operational Risks refer to the potential risks arising from a company's day-to-day business activities, which can affect its performance and reputation.
Regulatory Risks
Regulatory Risks refer to the potential for changes in laws and regulations that could adversely affect a business's operations, financial performance, or compliance status.
Strategic Risks
Strategic Risks are potential threats that can affect the viability of a company's business strategy and impact its ability to achieve its goals.
Finance Risks
Financial Risks are potential dangers that could negatively impact a company's financial health, affecting profitability, cash flow, and overall financial stability.
External Risks in Business
Other Risks encompass various potential threats that do not fall under the typical categories of operational, financial, strategic, or regulatory risks but can still impact a business significantly.
Financials
The financial backbone of the plan, this section includes the detailed Revenue Formation Narratives, Revenue Calculations, COGS Formation Narratives, and COGS Calculations, which give insights into how the company generates income and incurs costs. The section also encompasses crucial financial statements – the Income Statement, Balance Sheet, and Cash Flow Statement. These documents offer a comprehensive view of the company's financial status.
Revenue Formation Narrative
The Revenue Formation Narrative describes the process and strategies through which a business generates its income, detailing the key revenue streams.
Revenue Calculations
Revenue Calculation involves quantifying the total income generated from business activities, typically calculated over a specific period.
COGS Formation Narrative
The COGS Formation Narrative explains the various costs directly involved in producing the goods or services a business sells, crucial for understanding the company's profitability.
Cost of Goods Sold (COGS) - Meaning & Calculation
COGS Calculations involve quantifying the direct costs associated with the production and delivery of goods or services, essential for understanding a business's gross margin.
SG&A Personnel Expenses
SG&A (Selling, General, and Administrative) Personnel Expenses refer to the costs associated with the company's employees involved in selling, general, and administrative functions.
SG&A Other Expenses
SG&A Other Expenses include all non-personnel-related operating expenses incurred in the selling, general, and administrative activities of a business.
Business Income Statement
An Income Statement, also known as a Profit and Loss Statement, is a financial report that shows a company's revenues, expenses, and profits or losses over a specific period.
Balance Sheet - Financial Statement
The Balance Sheet Statement is a financial document that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, offering a snapshot of its financial condition.
Cash flow Sheet Statement
The Cash Flow Statement is a financial report that provides an overview of the cash inflows and outflows from a company’s operating, investing, and financing activities over a period.
Valuation
Essential for investors and stakeholders, this section assesses the company's value. It includes methodologies like the Estimation of Cost of Capital, DCF, Multiple-based Valuation, and Asset-based Valuation. These methods provide different lenses through which the company's worth can be evaluated, offering a nuanced understanding of its financial standing in the market.
Estimation of Cost of Capital
The Estimation of Cost of Capital is the process of determining the company’s cost of funding its operations and growth, both through equity and debt.
Cost of Capital Methodology
The Cost of Capital Methodology is a systematic approach to calculate a company's cost of capital, incorporating various risk premiums using the Capital Asset Pricing Model (CAPM) and other adjustments to reflect specific business risks.
DCF
Discounted Cash Flow (DCF) is a valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.
Multiple based valuation
Multiple-Based Valuation is a method of valuing a company by applying industry-specific valuation multiples to a financial performance metric of the business.
Asset based valuation
Asset-Based Valuation is a method of determining a company's value based on the total net asset value of its tangible and intangible assets.
Appendix
The Appendix serves as the supplementary section of the business plan. It includes a Glossary, which is an essential tool for demystifying complex terms and jargon, ensuring clarity and understanding for all readers. The Disclaimer part of this section is critical for outlining the scope and limitations of the information provided in the plan, offering legal safeguarding and clarity.
Glossary
The Glossary component of a business plan is a section dedicated to defining key terms, abbreviations, and jargon used throughout the document, ensuring clarity and understanding for all readers.
Disclaimer
The Disclaimer component of a business plan is a statement that limits the liability of the company and specifies that the information provided is for general guidance only.