Published on November 19, 2008
Ensure that margins are 1.2” on left and right. Can be checked in File > Page Setup Change name New Ventures India accordingly Arial font, size 22, bold, centred Business Plan: 2009 - 2014 Change logo accordingly Date Arial font, size 14, bold Added as a text box with Arial font, size 10, bold, centred; title underlined; red box – solid line size 1pt Change accordingly Contact Name, Designation Address Line 1 Address Line 2 City, State, Pin Code E-mail, Web Address Tel. No/ Mobile Number
NVI Business Plan Private & Confidential All super-headings Header should be in Arial should be in Arial font, font, size 9, underlined Table of Contents size 12, bold, centred Executive Summary………………………………………………………………………………………..3 Market Analysis…………………………………………………………………………………………….4 There are two lined spaces between the Create a linked TOC title and first line of after report is done – if text. you do not know how, TOC should only ask someone in the include Super office headings and Level 1 headings of main sections. For Appendix only include super—headings in TOC The only footer should be a page number that begins on this 2nd page, with a line above it _______________________________________________________________________________________ 2
NVI Business Plan Private & Confidential Executive Summary The business plan consists of a narrative and several financial worksheets. The narrative template is the body of the business plan. It contains more than 150 questions divided into several sections. Work through the sections in any order that you like, except for the Executive Summary, which should be done last. Skip any questions that do not apply to your type of business. When you are finished writing your first draft, you’ll have a collection of small essays on the various topics of the business plan. Then you’ll want to edit them into a smooth-flowing narrative. The Executive Summary is a document which captures and presents succinctly the essence of the written plan. It is a summary of the entire plan (a miniature plan) that allows the reader to gain a quick understanding of the business proposal. Describe the venture, the current state of development (start up, initial operations, expansion, or rapid growth) and promote what is unique about your product or service (including patents, licenses, royalties, distribution rights, franchise agreements etc.). Give the reader an overview of the marketing plan. Provide a specific description of the market and the potential customers. Identify the strengths against the direct competition for capturing potential customers. Be sure to use specific facts and figures from the market research. Clearly state the needs for financing and identify the sources from which capital will be obtained. List how much the owner will invest, how much investment capital is required (include both debt and equity), describe where the funds will be invested (highlight how much money is needed to grow the business, develop new products or services, increase marketing etc) and detail the expected results of the investment. Explain in detail how the growth plan will enable the owner or investor to exit if desired. Explain plans for going public, potential merger candidates, selling the business, etc. Provide an exit plan for the investor that justifies the expected return on investment. _______________________________________________________________________________________ 3
NVI Business Plan Private & Confidential (I) Company Overview Mission The mission clarifies the purpose of the organization. A mission statement helps in solving conflicts within an organization. Since the mission provides guidelines regarding the needs, purpose and activities of the organization, it functions as an accepted base of shared values and goals. Vision Clarifies how the organization wants to look and how it should act in the future to fulfil its mission; it provides the organization with something to aspire to. Core Values Describe the attributes that make the organization unique Company History Explain the history of the company (when and why it was formed). Describe how the business is organized and registered. Include marketing history of the company’s products and services. Shareholders Describe the ownership structure of the organization _______________________________________________________________________________________ 4
NVI Business Plan Private & Confidential (II) Market Analysis (A) Industry Sector Analysis Total Market Size (National as well as International) Peculiar Characteristics/Trends in this market Major Customer Group Major Players (B) Contribution of your product/services to your industry sector (C) Target Markets Current & Projected market share Gross Margin targets Purchasing Trends in the target market (D) Market drivers & Barriers (E) Regulatory Restrictions Customer or Governmental Regulatory requirement Anticipated changes in regulatory requirements Discuss both the present situation in the industry, as well as future possibilities. Provide information about the various market segments within the industry, with a particular focus on the area where your business is targeting. Describe the existing distribution channels through which the product or service is currently being sold or delivered. Describe areas where the industry is focused (i.e. rural vs. urban, international vs. domestic seasonal vs. annual etc). Describe the trends in the industry and the potential factors that may affect the industry (i.e. technology, consolidation, government regulations etc.). Cite sources of information. Determine the size of the industry for the product/service at the national, regional, local and international levels. Indicate the amount of money spent annually and/or units consumed annually in the industry. Cite sources of information. Document the growth of the industry and indicate if the industry is expanding, stable, or declining. Report the characteristics of the industry using standard measurements in the industry and describe the market potential based on these findings. Cite sources of information Describe the customer in terms of age, gender, profession, income, geographic location and other relevant demographics. Include customer psychographics (attitudes, values, beliefs and social status). Describe business customers in terms of business type, intended use, geographic location size of the organization, etc. Identify the government agencies that regulate businesses in your industry. List the necessary government approvals required. Indicate any government subsidies that may make your product or service more appealing (include any relevant documentation in the appendix) (III) The Product or the Service _______________________________________________________________________________________ 5
NVI Business Plan Private & Confidential (A)Description of the Product: Describe in depth your products or services in terms of: Utility Efficiency USP Price Competitiveness Product Life Cycle (B) Product Technology Description Competitive edge Exclusivity (C) Intellectual Property Copyright/Patents Risks/Mitigation Strategies (D) R&D Activities Technology Upgradation Plan Budget Allocation Describe the purpose of the product/service or product/service mix in terms of the problem it will solve. Include the unique features of the product/service, such as cost, design, quality and capabilities in comparison to competing products/services. Provide an evaluation of any product/service limitations. Describe the related services that will be provided and how they will increase the profitability of the venture (i.e. maintenance, refills, etc). Determine spin off products or services that can be developed to meet changing market needs in your industry. Explain how your company will be flexible in meeting changing trends. Provide a description of the warranties and guarantees to be offered. Compare to industry standards. Include technical documents in the appendix. Include a list of products and services provided by the company. Include testimonials, results from market surveys or focus groups in the appendix. List the patents, trademarks, service marks and copyrights that have been obtained or indicate the application status. Be specific about how all proprietary rights and intellectual capital will be protected. Describe any licence or royalty agreements associated with the product/service. Indicate any distribution rights that have been obtained or given away. Highlight current agreements and put contracts or details in the appendix. _______________________________________________________________________________________ 6
NVI Business Plan Private & Confidential (IV) Competition Identification Strengths Weaknesses Relevance to Competitors Barriers to Entry Most likely reaction to entry/expansion Identify the major competitors within your market and develop a list of the strengths and weaknesses of each competitor. Prepare a competitive analysis chart. Compare how your company competes in the areas such as: price, quality, unique features, distribution system, marketing/advertising, geographic location, strengths/weaknesses, market share etc. Cite sources of information. Identify areas where your organization cannot compete and areas where you can provide added value to the targeted customer. (V) Marketing & Sales strategy _______________________________________________________________________________________ 7
NVI Business Plan Private & Confidential Market Outreach Plan Brand Building Strategy Potential Allies & Partners Milestone/ Timeline for next 3 years Website Updation Identify the target market outreach plan, the target customer segment, the brand building strategy etc. Describe the distribution network (sales representatives, partnerships, catalogues, trade shows, franchisees etc) and detail the projected penetration rate of each channel with respect to potential customer base. List the activities for penetrating the targeted market, who is responsible for key processes or activities (i.e. sales training, selecting distributors, selecting potential partners for promotion etc.) and when each activity is to be completed. Outline the timing for a time period of1-3 year. (VI)Operational Plan Infrastructure _______________________________________________________________________________________ 8
NVI Business Plan Private & Confidential Describe the need for facilities. Outline manufacturing facilities, production capacity, and future capital required to build facilities. Include detailed information concerning these factors (i.e. diagram of the factory, store, and office layout) in the appendix. Describe the production and/or service delivery process. Identify how much of the product/service will be produced internally and how much will be subcontracted out. List the costs of subcontracting by giving both percentages and dollar amounts of production costs. Include shipping, billing, inventory, stocking and payment terms. List the names of subcontractors and back up subcontractors in the appendix. Operations Staff Provide a production/delivery schedule. List all the activities that make the production/delivery schedule and the names of the persons responsible for each activity. Logistics Describe the administrative policies, procedures and controls for the following: receiving orders billing customers collections paying suppliers reporting to management communication and information sharing inventory control maintenance, returns or warranties customer feedback establishing budgets, and sales goals based on resource capacity and availability data management and security Diagram the flow of information through the system (for all major processes). List the documents needed to prepare for each transaction. List all the activities necessary to get a new product ready to market (project timelines, key milestones, department responsibilities for each activity and project completion dates). Outline the timing of events through the project development cycle. Suppliers Critical vendors Inventory management Critical raw materials Supply alliances List suppliers and back up suppliers and descriptions of their products/services. Detail the suppliers’ role within the company’s supply chain. Include any agreements with suppliers in the appendix. Cost of Goods Sold structure _______________________________________________________________________________________ 9
NVI Business Plan Private & Confidential Break down the costs associated with the price paid for the product by the customer (detail any additional costs necessary to get the merchandise into inventory and ready for sale, including shipping and handling). Scalability Potential & Plans Describe the products/ services, locations, distribution channels and marketplaces that will be pursued in the future. Project revenues for five years and estimate potential costs associated. List the estimated financial requirements for pursuing the growth strategy and explain where the company plans invest the capital. _______________________________________________________________________________________ 10
NVI Business Plan Private & Confidential (VII) Key People & Human Resources Key People Position & Responsibility Past Experience & Unique Skills Compensation Packages Board External Advisors/Consultants Provide a list of key members, titles and detailed job descriptions of the management team (include their experience, training, and special expertise). Indicate that copies of CV’s are included in the appendix. Provide a list of all contracts for the members of the management team: employment, intellectual property, etc. (include in the appendix). Provide in a table the board of directors and advisory council members, including names, titles (chairperson, secretary, treasurers etc) and qualifications. List their potential contribution to the company. List the key advisors including accountants, lawyers, bankers and consultants along with a description of his/her expertise. Also identify the compensation package for each advisor (include in the appendix). Human Resources Management Philosophies and Styles Org. Chart Salaries and Benefits Packages Labor Regulations followed HR Development Strategy Describe the management philosophy (i.e. centralized vs. decentralized, cross functional vs. departmental, leadership and work ethic expectations, etc) Prepare an organizational chart showing how the company is organized by person and job title. If a person has not been hired yet, just list job title. List additional management personnel and other employees needed to support future growth. List job titles, job descriptions, salary, benefits, amount and type of training required and support staff members needed. Describe the compensation package for the entrepreneur and the key members of the management team. List in a chart salaries, benefits, bonuses, warrants, stock options etc. Describe about the HR Development strategy for your company. Explain the incentive plan, using performance goals tied to projected revenues or market penetration. Define various incentive programs such as profit sharing, stock options, bonuses etc. Summarize key points and place relevant documents in the appendix. Describe the professional development, training and leadership succession resources available and the procedures and policies for qualifying. _______________________________________________________________________________________ 11
NVI Business Plan Private & Confidential (VIII) Social & Environmental Impact 1) Environment Management: Environmental benefits from your product or services Effective water management strategy Effective energy management strategy Green House Gases mitigation Strategy Waste recycle / reuse strategy Aforestation strategy 2) Socio economic benefits: Employment generation Enterprise development Are you involved in any social community initiative? Describe the potential social and/or environmental impact of the product or service and what policies, procedures and/or promotions the company has in place to create awareness of these benefits. (IX) Financial Plan _______________________________________________________________________________________ 12
NVI Business Plan Private & Confidential Past Projected Financials & Budgets Assumptions o Sales Build-up o Personnel o Marketing Costs o Infrastructure Investments o Inventory & Accounts Payable o Accounts Receivable o Debt Servicing Income Statement- Past & Projected Balance Sheet- Past & projected Cash Flow Projected Financial ratios and comparables Budgeting & Monthly Cash Flows Financial Scenarios & Breakeven Analysis Financial Systems & Control o Information Systems for Finance and Administration o Banking & Lender relationships o Controls o Cash Flow Management o Audits & Reporting Asset Valuation of the company Financing Funding to Date Ownership details Investment rounds to date Shareholders Agreements Financing Sought Terms & Timing Use of Funds Ownership Changes Future Funding Requirements Prepared Exit Strategy for the investors Each appendix should be on a Appendices new page and labelled Annexure 1, 2, 3… in the TOC, do not put subheadings for Appendices _______________________________________________________________________________________ 13
NVI Business Plan Private & Confidential A. Appendix : Vision, Mission, Values Statements B. Appendix : Historical Financials C. Appendix : Market Research D. Appendix : Promotional Materials E. Appendix : Pertinent Published Materials F. Appendix : Ownership Structure Summary G. Appendix : Curricula Vitae of Key Personnel H. Appendix : Professional References I. Appendix : Financials from The Scenarios J. Appendix : Risk and Risk Mitigation K. Appendix : Significant Contracts 1 Leases 2 Sales Contracts 3 Purchases Contracts 4 Partnership/Ownership Agreements 5 Stock Option Agreements 6 Employment/Compensation Agreements 7 Non-Compete Agreements 8 Insurance _______________________________________________________________________________________ 14
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