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.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.g. 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?
* 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
* Physical location
* The production process
* 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
* 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...
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