Business Plans
COSC 405
Spring 2013
Bridget M. Blodgett
Business Plans
• Business plans are like the design document of
any company
– They outline what the company is about, what its
goals are, and how those goals will be reached
– The point of a business plan (just like a design
document) is to remove ambiguity
• They are used not only by your company to make
sure everyone is on the same page but by outside
resources to make sure you know what you’re
doing
External Business Plans
• External business plans have slightly different
goals than internal ones
– Primarily it lists goals that are of interest to
external stakeholders
• Contains more information about the
team/organization
• The focus is on the big goals the company will
reach with their product
Internal Business Plans
• Internal plans look at the goals that need to
be achieved before any of the big, external
goals can be met
– This can be resource generation, production of
products of facilities, restructuring or
management of the current resources, etc.
• Often developed alongside frameworks meant
to look at financial and non-financial
measures of performance
Types of Internal Plans
• If your plan only provides general guidance on
how goals will be met it is called a strategic
plan
• Operational plans break down the goals into
internal organizations, working groups, or
departments
• Project plans look at the goals of a particular
project (occasionally fitting that project in
with the larger strategic goals)
Stakeholders
• A stakeholder is any “person” that can affect
or be affected by the actions of the business
• The general definition is, “those groups
without whose support the organization
would cease to exist”
• Two general categories: Market (Primary) and
Non-Market (Secondary)
Stakeholder Mapping
• Within your group come up with a preliminary
list of who your primary and secondary
stakeholders would be
• Understand why each group you list is in the
category to which you assign it
Content
• The content of your business plan depends
heavily upon who you are showing the plan to
and what you want from them
• If you are trying to convince a non-profit to
join you they are often worried about how will
your plan matches their mission while a bank
is worried about defaults on loans
• Who is the audience for you business plan?
What do they want out of you and your plan?
Preparing Business Plans
• Although the content is different there are
several general areas business plans should at
least touch upon:
– Finance, human resource management,
intellectual property, supply chain management,
operations management, and marketing
Format
• Always have a couple of different formats
ready for each business plan:
– Elevator pitch
– Pitch deck with oral narrative
– Written presentation for external stakeholders
– Internal operational plan
Typical Structures
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Cover Page & ToC
Executive Summary
Business Description
Business Environment Analysis
Industry Background
Competitor Analysis
Market Analysis
Marketing Plan
Operations Plan
Management Summary
Financial Plan
Attachments & Milestones
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What problem does the company's product or
service solve? What niche will it fill?
What is the company's solution to the problem?
Who are the company's customers, and how will
the company market and sell its products to
them?
What is the size of the market for this solution?
What is the business model for the business
(how will it make money)?
Who are the competitors and how will the
company maintain a competitive advantage?
How does the company plan to manage its'
operations as it grows?
Who will run the company and what makes
them qualified to do so?
What are the risks and threats confronting the
business, and what can be done to mitigate
them?
What are the company's capital and resource
requirements?
What are the company's historical and projected
financial statements?