COGS Formation Narrative

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.

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.

Business Phases refer to the distinct stages of development and growth that a business undergoes, from inception to maturity.

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 refer to specific problems that prospective customers of your business are experiencing.

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 is a framework for analyzing a business's competitive environment and identifying the level of competition within an industry.

VRIO Analysis is a strategic tool used to evaluate an organization's resources and capabilities to discover competitive advantages.

PESTEL Analysis is a strategic tool used to analyze the macro-environmental factors that can influence an organization's operations and performance.

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.

A roadmap is a strategic plan that outlines a business's vision, objectives, and the steps needed to achieve them over time.

Funding Allocation is the process of assigning financial resources to different areas of a business to support its strategic objectives and operational needs.

Competitive advantage refers to the attributes that allow an organization to outperform its competitors.

Marketing Strategy is a comprehensive plan formulated to achieve specific marketing goals and objectives.

Target client groups are specific segments of the market that a business plans to serve and focus its products, services, and marketing efforts on.

A Competitor Overview provides an analysis of other businesses that offer similar products or services in your market.

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 Users are the specific group of individuals or organizations that a business aims to serve with its products or services.

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 involves setting the right price for your product or service, balancing between cost, value to the customer, and market conditions.

Organization Structure refers to the system of hierarchy and functional distribution within a company, defining roles, responsibilities, and lines of authority.

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.

General Tasks are the various activities and responsibilities undertaken by a business to achieve its operational and strategic goals.

Marketing Tasks are specific activities and initiatives undertaken to promote a business’s products or services, enhance brand visibility, and drive sales.

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.

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 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 are potential threats that can affect the viability of a company's business strategy and impact its ability to achieve its goals.

Financial Risks are potential dangers that could negatively impact a company's financial health, affecting profitability, cash flow, and overall financial stability.

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.

The Revenue Formation Narrative describes the process and strategies through which a business generates its income, detailing the key revenue streams.

Revenue Calculation involves quantifying the total income generated from business activities, typically calculated over a specific period.

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 (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 include all non-personnel-related operating expenses incurred in the selling, general, and administrative activities of a business.

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.

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.

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.

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.

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.

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 is a method of valuing a company by applying industry-specific valuation multiples to a financial performance metric of the business.

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.

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.

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.