Business Plan Guide

THE ODU ENTREPRENEURIAL CENTER

BUSINESS PLAN HELPER

Thanks to Dennis Ackerman for developing this guide.

The following business plan outline is presented to assist business people and students in developing

written business descriptions and continual status reviews. If you answer the given questions, and

include the sections as outlined,you will be well on your way to a useful and presentable written plan.

I. BUSINESS PLAN – OVERVIEW

The purpose of a written business plan is twofold:

A. It is the preferred mode of communication between those businesses that need capital and those

that have capital.

B. It can be a useful Management Tool

1. The procedure forces logic and discipline into the business

2. The plan establishes concrete objectives and goals, with general parameters to guide the

organization.

3. It provides a basis for communicating the company’s message

- Internally to owners Internally to employees

- Externally to investors, advisors, or customers

A well written business plan is dynamic and is:

C. An art as well as a science

D. A map of where the company is currently situated, where it plans to go , and the most effective

method of reaching the stated destination.

E. Updated – This is a “Living” document

II. KEY INITIAL QUESTIONS

- Why are you writing the business plan?

- Who will be the primary reader of the plan?

- What is the readers’ expectation?

- Who will have to agree to the objectives and goals of the plan?

- What do the key people in the project want to be when they grow up?

- What is the industry “system” your entity will be operating within and can you draw a

picture of this industry system?

- What past experience does the management team posses that indicates the future plans will

succeed?

- How will you separate your plan/entity from any others in the industry?

Why are your ideas or products/services unique?

How will you protect your ideas?

- What are the strengths of the management team individually and as a group? What are the

weaknesses?

- If you are planning to create a 10 million dollar product/service, has anyone on your team

had any past experience in taking any concept from 0 to 10 million dollars?

- What are you willing to give up to attract investors?

How will the investors be protected?

How will you be protected from investors?

Once you have answered these basic questions, preparing an outline, or a feasibility study, or an

abbreviated plan is the next step, depending on your specific needs. All three of these options provide

a quick planning overview with the major opportunities and obstacles identified. It is important at each

stage of planning process to stop and review the entire project to see if it is still feasible. It is easy to

lose sight of the “forest” due to the concentration on individual “trees”.

III. CREATE AN OUTLINE, FEASIBILITY STUDY, OR ABBREVIATED PLAN

Most people start with the Market Analysis and the Financial Analysis to have a qualitative and

quantitative foundation.

1. Purpose of the Plan

State the primary vision for the plan/entity and include a mission statement if possible.

2. Key Personnel

Most investors look at the management team for its expertise in a given business or market.

Who are key personnel in your company and what unique or special prior success and skills do

they bring to the team? Do you have marketing, sales, financial, technical and strategic

management skills on the team?

3. Market Analysis – Characteristics, Scope

What has caused the market for your products or services to exist? How big is the market in $

sales, population, units consumed, etc.? What are the key barriers to entry into the market?

What are the important industry trends? What are the important variables in the industry

distribution system?

4. Market and Sales Strategy

What specific practices will you employ in competing within your business’ market? What is

your comparative advantage? Will you offer more services for a premium price or fewer

services for a lower price? How will your potential customers learn about your product?When

will the sale actually occur – who will conduct the sale?

5. Products or Services Offered

Describe your company’s products in terms of what the customer buys – not necessarily what

you produce. For example: “My business provides access subscriptions to the Internet” – not,

“My business connects computers to the Internet”.

6. Financial Data

Include highlights of your financial data. Start with a simple monthly cash flow projection for

the next 24-36 months of cash collected and spent. Any serious investor will want to know

what to expect in return for any financial contribution to the company. Highlight the

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