同海大学 TONGJI UNIVERSITY Business Plan Dr.Pan Xuan School of Economics and Management Tongji University
Business Plan Dr. Pan Xuan School of Economics and Management Tongji University
同濟大学 TONGJI UNIVERSITY What is a Business Plan? A Business Plan can be defined as: A formal report detailing the marketing strategy,production costing and financial implications of a business start up Its main purposes are to: >Identify strengths and weaknesses of the business idea >Highlight the financial risks involved >Help to plan the business >Help to obtain FINANCE mPossible sources include: ，Family and Friends ◆Bank ◆Venture Capitalists
同濟大学 TONGJI UNIVERSITY What's the Point? You don't have to have a Business Plan to start a business! But,research proves that Business Plans work: DOAY ONLY NEWS NEWS VS e 59%of businesses all Businesses that undertake regular that started with a business plan felt surveyed business planning have on average a that it had enabled strategic had profit margin of 54% them to grow larger Boy rescues enue For those that do n within their first two trapped cats those the average profit years Boy rescues trapped cats margin is 35%
同濟大学 TONGJI UNIVERSITY Contents of a Business Plan Your Business Product and/or Details Objectives Services offered Key Personnel Typical Contents Sales and of a Business Plan Marketing Financial Information Customers Competition
同濟大学 TONGJI UNIVERSITY Business Obiectives The objectives of a business outline what they want to achieve over different time spans: year: 1 2 3 4 5 Short-Term E.g.To survive,or to establish a reputation in the local area Medium-Term E.g.to achieve growth,perhaps by opening other branches Long-Term E.g.to be an ethical business,or make charitable donations
同濟大学 TONGJI UNIVERSITY Products and Services to be Offered The business plan should answer a number of key questions about the products and services to be offered: >What are the main products and/or services to be offered? How much will each of these contribute to profit? >What is unique about these products or services? >What further products or services do you intend to offer? >Who will be the supplier? What alternative suppliers are there? >What stock levels do you require? ■Cost of Raw Materials Cost of Finished Products De
同濟大学 TONGJI UNIVERSITY Sales and Marketing Two factors should be covered here: Sales Marketing This refers to the amount that This refers to the way in which you intend to sell you will promote your business >What level of sales are >Where do you intend to anticipated? promote your products? >What assumptions have >How do you intend to been made about these promote you products? figures? What are the financial >Do you believe your sales implications of this marketing figures are realistic? exercise? Sales FREE HONE
同濟大学 TONGJI UNIVERSITY Customers You will need to outline: >Who your customers are >Where your customers are >How many potential customers there are What research have you done to prove this? >What will make customers choose your products What are the strengths of the products?
同濟大学 TONGJI UNIVERSITY Competition You will need to outline: >Who your major competitors are >Where your competitors are located >What their strengths are >What their weaknesses are You will also need to identify whether the market is... >Static? >Declining? >Growing? >Seasonal? ■And why?
同濟大学 TONGJI UNIVERSITY Financial Information There are two points when a Business MAY need additional finance Business Finance Start-Up Growth At start-up a lender will expect to see: When applying for additional funding, A Cash Flow Forecast lenders will expect to see: >A predicted Break Even Point Financial information from the last >The actual amounts for: three years Premises (Mortgage or Rental) >Existing financial commitments Rates >Gross Profit Margin Insurance >Predicted Capital Expenditure With life expectancy of the product