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Creating a Business Plan: The Basics 1
Getting Started 3
Quick tips for clarifying the purpose, audience, and needed information
for your business plan.
Why have a business plan? 4
What’s your purpose? 4
Who’s your audience? 5
What information will you need? 7
Anatomy of a Business Plan 11
A preview of the different parts and structure of a business plan.
The opening, body, and attachments 12
Typical structure for a business plan 12
Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012
Cover Page and Table of Contents 15
What to include in the first elements your readers will look at.
Preparing the cover page 16
Developing the table of contents 16
Executive Summary 17
How to provide a helpful summary of your plan for readers.
Including the right information 18
Formal executive summaries 19
Executive summaries as mission statements 21
Business Description 23
Tips for briefly summarizing your business.
Introducing your business 24
Incorporating the right details 25
Highlighting your product or service 26
Business Environment Analysis 29
Strategies for conveying your business’s potential.
Understanding industries and markets 30
Asking the right questions 31
Industry Background 33
How to clarify the big picture.
Defining existing products and services 34
Sizing the industry 34
vi Contents
Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012
Identifying important trends 35
Anticipating barriers to entry 36
Competitive Analysis 39
Ways to size up potential rivals.
Identifying your competitors 40
Distinguishing your business from rivals 41
Assessing threats from the competition 41
Market Analysis 47
Strategies for clarifying who your customers will be.
Assessing the market’s size and growth 48
Defining your target market 49
Articulating your value proposition 49
Marketing Plan 55
Tips for showing how you will attract customers.
Using your marketing plan as a road map 56
Developing your marketing plan 57
Defining your marketing mix 59
Operations Plan 67
How to articulate your business’s daily activities.
Understanding operations 68
Determining breakeven point 68
Identifying other key success factors 69
Contents vii
Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012
Management Summary 71
Ways to introduce your management team.
Describing your team members’ qualifications 72
Introducing the team as a unit 74
Financial Plan 77
Suggestions for showing how the numbers will work.
Anticipating readers’ concerns 78
Specifying your business’s capital requirements 79
Providing financial projections 81
Articulating your assumptions 82
Conducting breakeven analysis for sales 84
Assessing risk and reward 84
Anticipating financial returns 86
Attachments and Milestones 89
What to include at the end of your plan.
Providing attachments 90
Stipulating milestones 90
Tips and Tools 93
Tools for Creating a Business Plan 95
A workbook to help you create a simple income statement, balance
sheet, and cash flow statement for your business.
viii Contents
Purchased by Chiagozie Nwabuebo (gozie_nwabuebo@hks12.harvard.edu) on July 13, 2012
Test Yourself 110
A helpful review of concepts presented in this guide. Take it before
and after you’ve read the guide, to see how much you’ve learned.
Answers to test questions 11
To Learn More 116
Further titles of articles and books if you want to go more deeply
into the topic.
Sources for Creating a Business Plan 12
Contents ix
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