Business Plan Structure Advice

[idv]

I am currently writing a business plan for a start up web business.

I have written a section on 'Legislation and IPR' and 'Technology' - what section heading would these fit into in the business plan.

I have put them under 'Product and Services'

Also what section should the 'Business Model' and 'Revenue Streams' sit in, at present they are under 'Marketing and Sales'

TIA

 

[stevesolo]

Hi idv

as a rough guide

1. Executive summary
2. Overview of market
3. Products and services
4. Target markets
5. Competition
6. Marketing plan
7. Management team
8. Finance, including external funding requirement if applicable
9. Exit strategy (where applicable)
10. Sales forecasts (spreadsheet and information supporting assumptions)
11. Profit & loss projections again with assumptions
12. Cash Flow forecast

are the key headings, although everyone has their own opinions. Not sure where I would put your first ones without knowing more about it, but I think you're right about business model and revenue stream.

Hope that helps.

Steve

 

[Qdos]

Who is the plan being written for?

A conventional debt financing lender requires less focus on some aspects than say, a potential equity stakeholding investor. It can be used solely as a marketing tool to attract interest from those who may wish to piggyback through your web presence to reach your intended market. It may just be for your own purpose to give you a heads-up, in which case the headings are perhaps just a distraction.

I mostly concur with the previous poster, putting emphasis though on understanding the context of a plan: avoid opinion unless you can substantiate your conclusions. Research is everything.

I'd also steer well clear of the "Me, me, I, I" style of pitch, or incessant repetition of your brand, company name. Lenders especially will decline if everything is dependent on you: you can get hit by a bus and then there's no business. Equally, if your marketing works, there's no infrastructure (bodies) to cope leaving you doing 80-hour weeks. Play up the management team/personnel side, even if they're outsourced and what it is they will actually have responsibility for. Keep it simple, the three key areas are: Finance, Operations, Sales. Your model should show that it's not a one-trick pony. Bolt-ons make more profit than core delivery. Can you create multiple passive income streams?

You should be able to say what you need to say, ideally clearly articulating the benefits to your web business users (and investors ROI), in less than 8-10 pages including the financials; more than that it should either be in appendices to support your assertions, or else you're waffling.

Give some thought to PEST, which is a derivative of SWOT. You have an 80% chance of something happening to you and your busines, you have little control over. The point of a plan frankly is, what is your plan B? Oh and on page one state what you're asking for, under a sub-heading: Proposal. Nothing tees off an investor more than wading through 60 pages before finding out what it is you want from them.

There's more but those are the edited highlights. Good luck!

I speak as a qualified freelance start-up business advisor and management consultant for over fifteen years...

 

[stevesolo]

Fully agree with you qdos. The OP does not actually say what the plan is for, e.g. to raise finance.

I believe that every business should have a business plan, and a method of measuring how effectively the business is performing against that plan, and adapting the plan when circumstances or market forces dictate so that the objectives are met. If you're trying to raise finance, of course it's essential.

 

[Archibald]

Exactly ! you are right. A business plan is a must thing to have. It really means the ground work and analysis you have had on your interesting side, like which business you want to start.