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Business Proposal Contents

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The typical contents of a full form business or strategic plan are listed below. Executive summary * What is the business? * What is the market? * What is the potential for the business? * Forecast profit figures * Funding requirements * Prospects for the investor/ lender Description of the business What is the business? * A brief description of the business idea and why it should be a success * History of the enterprise and its ownership * Information about the entrepreneur’s qualifications, experience and financial status * Location

Products and services * A description of the product and what it does * An explanation of ways in which the product is distinctive and unique * Analysis of the competition * How the product will be developed and what new products are being considered as replacements * Intangible assets & protection (e.

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g. copyright, trade marks) The market * Size and expected growth of the market * Analysis of market by segments * Identification of target segments Competitors – who they are, ownership, size, market share, likely response to the challenge * Customers (existing & potential) – who they are, how they buy, why they buy * Distribution channels Situational audit (where are we now? ) This involves data collection and analysis Purpose of data collection and analysis: * Determine which opportunities to pursue * Identify SWOT * Identify competitive advantages * Provide a background for the formulation of strategy Main analytical techniques: * PEST/ PESTLE analysis * SWOT analysis * Competitor analysis * Marketing audit Statement of aims and objectives (where do we want to go? * A statement of what the business should achieve over a five year period * Aims should be expressed in terms of hierarchy of objectives becoming progressively more detailed and specific * Vision – what the organisation will be like in the future * Mission statement – a statement of the overall purpose and aims * SMART Objectives – quantitative goals.

* Functional objectives – objectives for the functional areas Strategy and tactics * How are we to get there? * Strategy is the broad approach to the achievement of objectives * Summarises how to fulfil the objectives * Tactics refer to the details of the strategy e. . the promotional mix * The detail will be contained in programmes and budgets Marketing: key questions to be answered * Who are our customers? * Who are our competitors? * What is the size and growth rate of the market? * How is the market segmented? * What is special about our product or service? * What are our competitive advantages? * What is our marketing strategy? Marketing plan * Market research * Segmentation and targeting * Detailed outline of the product or service * Unique selling points * Chosen pricing strategy * Promotional plans * Distribution strategy (including online) * Customer service strategy Operations plan Physical location * The production process * Facilities * Equipment * Scale & location of operations * Capacity – potential and effective * ICT strategy * Engineering and design support * Materials required * Inventory levels and stock control plans * Purchasing arrangements * Sources of supply of key resources * Quality control plans * Staffing requirements Management and organisation * Organisational chart * Details of senior management * Corporate governance * Staffing requirements * Key personnel * Recruitment and selection * Training * Rewards (financial & non-financial) * Labour relations * Employment and related costs

Forecasts in the business plan * Sales forecast * Forecast profit and loss account (income statement) * Cash flow forecast (cash budget) * In each case this should be a month by month forecast for a minimum of two years * Forecast balance sheet for each of the first two years * The assumptions behind the forecast should also be included Financial data * Investment appraisal – payback and discounted cash flow * Break even analysis * Evaluation criteria for performance review * Ratio analysis: net profit margin, Gross profit margin, return on capital employed, liquidity and solvency analysis Financing required Details of capital required and uses * The plan must include details of the external finance required * This will be equal to the finance required less finance raise internally from existing owners and from operations * The plan will outline how it is proposed to raise the finance * Sources of finance: Short, medium and long term; Debt v equity Other Business Study Resources You Might Like on tutor2u Starting a BusinessSources of Finance for a Startup Franchising Cash Flow Forecasting for a Startup Creating & Protecting Business Ideas Startups and Understanding the Market Market Research for a Startup

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Business Proposal Contents. (2016, Sep 18). Retrieved from https://graduateway.com/business-proposal-contents/

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