BUSINESS PLAN PROPOSAL
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1 Your Business Name Your Logo BUSINESS PLAN PROPOSAL Business Plan Proposal Prepared By Your Name Your Title Your Company Address With Your Phone Numbers Your Date Prepared Month, Year
2 Table of Contents EXECUTIVE SUMMARY... 3 PRODUCT/SERVICE... 4 Purpose of the Product/Service...4 Stage of Development...4 Product/Service Limitations...4 Proprietary Rights...4 Governmental Approvals...4 Product/Service Liability...4 Related Products/Services and Spin-Offs...4 Production...4 THE MARKET... 5 Current Industry Size...5 Growth Potential of the Industry...5 Industry Trends...5 Competition Profile...5 Customer Profile...5 Customer Benefits...5 Target Markets...5 Market Penetration...5 PRICE & PROFITABILITY... 6 Price and Profitability Analysis...6 Sales Estimate...6 Cost of Product/Service...6 Gross Margin...6 Financial Projections...6 PLAN FOR FURTHER ACTION... 7 Needed Capital...7 Entrepreneur s Role...7 Business Plan...7 License Potential...7 Corporate Partners...7 Proprietary Rights...7 Infrastructure Members...7 2
3 EXECUTIVE SUMMARY Venture Description What business is your venture in? What is the current stage of development for the venture? Product/Service What is unique about the product/service, and what proprietary rights does the business have? The Market What is the market like in terms of the industry, the target market, customer needs, product/service benefits, and market-penetration plan? Start-up Costs How much money does the venture need for start-up costs? Price & Profitability What kind of financing will the company need? 3
4 PRODUCT/SERVICE Purpose of the Product/Service What purpose and unique/ features distinguish your product/service? Stage of Development What is the stage of development of the product/service? Product/Service Limitations What are the limitations of your product/service? Proprietary Rights What proprietary rights exist for your product/service? Governmental Approvals What governmental approvals are necessary for your venture? Product/Service Liability What are the possible liabilities this product/service may pose? What are the insurance requirements? Related Products/Services and Spin-Offs What new product/service spin-offs could be developed to meet the ever-changing market needs in this industry or others? Production How much will be produced internally, and how much of the production will be subcontracted out? 4
5 THE MARKET Current Industry Size What is the current size of the industry for the product/service at the national, regional, state, and local levels? Growth Potential of the Industry What is the growth potential of the industry for the product/service? Industry Trends What industry trends do you predict will affect the product/service? Competition Profile Describe the competitive advantage for your product/service. Customer Profile Who is the intended customer for your product/service? Customer Benefits What problems are you solving for your customers? Target Markets What target markets exist for your product/service? Market Penetration How will the product/service be sold to potential customers? 5
6 PRICE & PROFITABILITY Price and Profitability Analysis What pricing strategy will you adopt for your products and services? How does your price match the strategy? How does your price compare with the competition? Are your customers willing to pay your price? What else do you need to know to make decisions about pricing? How will you price your products/services? Sales Estimate What is your sales estimate by product/service for three years? Include sales estimate worksheet Projecting Sales Cost of Product/Service What is the cost of providing the product/service for three years? Include cost of product/service worksheet Cost of Product/Service Gross Margin What will the gross margin be for each product/service for three years? Financial Projections What is your budget for marketing, administrative and general expenses? What is your net profit? What are the costs to start this business? What are your start-up expenses? What are your capital expenditures to start this business? Include budgeting worksheets Three-Year Operating Expenses; Three-Year Operating Statement; Start- Up Costs; Start-Up Expenses 6
7 PLAN FOR FURTHER ACTION Needed Capital How can the needed capital for starting the new venture be obtained? Will you use a bank, venture capitalist, private placement, friends, relatives, or yourself? Entrepreneur s Role What role will you play in the new venture? Business Plan Should a business plan be written? License Potential Should the product/service be licensed or royalty rights be given to another company? If yes, why, and who is a potential licensee? Corporate Partners Are there potential corporate partners or joint-venture opportunities? Proprietary Rights Do you have any proprietary rights that could be sold to other parties? Infrastructure Members What infrastructure members are available to help prepare the business plan? What is the projected cost of their services? 7
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