Innovation
Modern Tech
Dr. Osman Barghouth
Ms. Faryal Jadoon
Names and IDs:
Thualkufl Al Yahyaei 18-0500
Hamed Al Taheri 18-0273
Ali Al Rashdi 18-0331
Muadh Al Kindi 18-0157
Jamal Al Mawali 18-0600
Majid Al Sulaimani 18-0284
Contents
Business Description ……………………………………………………………………………………………………….. 3
The problem ………………………………………………………………………………………………………………. 3
Company Name and description …………………………………………………………………………………. 3
Location or proposed location …………………………………………………………………………………….. 3
Products and/or services …………………………………………………………………………………………….. 4
Competitive advantage ………………………………………………………………………………………………. 4
Company Mission, Values, Vision, and goals Mission statement ………………………………….. 4
Business Model ………………………………………………………………………………………………………….. 5
Legal Structure of the business …………………………………………………………………………………… 7
The industry …………………………………………………………………………………………………………………… 7
Industry Background …………………………………………………………………………………………………. 7
Competitors……………………………………………………………………………………………………………….. 8
Positioning/Niche ……………………………………………………………………………………………………….. 9
Distribution Channels ………………………………………………………………………………………………… 9
The Macro-environment …………………………………………………………………………………………… 10
SWOT Analysis ……………………………………………………………………………………………………….. 11
Competitive Analysis Worksheet ………………………………………………………………………………. 12
Market Research …………………………………………………………………………………………………………… 13
Market research ………………………………………………………………………………………………………. 13
Target customer……………………………………………………………………………………………………….. 13
Product/Service Acceptance by target customers ………………………………………………………. 14
References : ………………………………………………………………………………………………………………….. 16
Business Description
The problem
Smart homes are one of the best ways to protect the environment from many risks, such as
pollution and other risks. There are many problems that happen in our daily lives, and they can
be solved through smart homes. Beginning with the security system, it is one of the most
important things that we need at the present time because it will help us solve several problems,
and I will mention them. Firstly, the security system helps to protect our homes from being
robbed, such as by installing a fingerprint identification system or a face ID system for the
homeowner. Secondly, the security system also helps protect homes from fires, as smart
homes that have a security system can reduce fires caused by forgetting some working electrical
appliances. Moving on to the energy management, it reduces the energy bills by taking control of
all the equipment and devices. For example, the lighting can be turned on and off automatically
by a smart sensor by detecting heat from occupants moving within an area (900 square feet)
to determine when the space is occupied at a low cost. It turns off when there is no one in the
room and in the morning, it does not work at its full power and brightness. Moreover, the air
conditioning can also be controlled by the system with temperature sensors, setting time for
heating and cooling and turning off automatically when no one is in the room. This is used
to adjust the temperature and lighting level accordingly for better energy management at a high
cost. (1) (2)
Company Name and description
Modern Tech
installation of smart systems in homes and enhancing security.
Location or proposed location
Location is one of the most important features of a business, and for this reason, the plan of our
firm is to be located in an easily accessible and suitable place for both customers and employees.
To begin with, the idea of having a smart house is needed before the home texture is done,
especially before the electrical circuit layout because our smart houses work on a unique system.
Therefore, we will locate our showroom nearby to an electrical shop (AC, washing machine,
lights, etc.). In this case, we will target customers in the stage of completing the electrical
accessories, and that’s where our job will begin. In order to attract the customers in a smart way,
we will rent a parking lot for our customers and provide a hostel for our employees within the
same building to have flexibility in their shifts and be on time to increase productivity.
We are trying our best to find a wide-open, street-facing location with a big advertising screen on
top of the building so the public can see it and people can use public transportation easily to
reach us. Furthermore, our rented parking lot will have display boards that mention the products
and services we provide. In this case, everyone is going to pass by the name of our firm and
know what we serve, especially the customers that are already there for the electrical product
shops nearby. As a result, we are planning to find all of the above circumstances in an industrial
location and have a large space for our simulated house as a start. Furthermore, that will favor
our distribution channels as our delivery trucks will be parked there, so we will have a direct
delivery (warehouse–>customer). The same thing goes for our service employees and their
provided personal cars, so we can deliver our services smoothly and quickly.
Products and/or services
•
•
•
•
•
•
•
Selling ready built smart homes
Converting normal homes into smart ones
One time installation fee
Yearly updating of the system
Full service for the equipment
Counseling and plan making for the customer
Selling equipment and systems for smart homes
Competitive advantage
We thought that in order to have a great competitive advantage in the marketplace, we needed to
make the service we would provide more modern and developed than the other companies and
competitors.
•
•
•
The main competitive advantage that we have is that we are considered in a niche market
because we don’t have more than five competitors here in Oman, which explains that the
competitive range is very small in Oman, not like worldwide.
Our idea for a new product that will make our service unique from the other competitors
is to provide an “issues detector.” This product can detect any problem or issues in any
cable or water pipe in the house, which will help the house owners and us to know where
the problem is and repair it as soon as possible before it gets bigger and harder to repair.
In order to make our business more popular and trustworthy, I want to make an
agreement with the most popular technology companies in the world, which are the
companies that are well known among the people, in order to make our name get big
faster. Those companies are Samsung, LG, and Apple.
Company Mission, Values, Vision, and goals Mission statement
Mission statement: our mission is to provide a modern lifestyle and safety for your beloved
ones and family.
Mission: with modern tech, we ensure you the future.
Values: values are the identity of the company and when it comes to the modern tech company,
we insure our customers:
1- Family
2- Loyalty
3- Innovation
4- Security and safety
5- Excitement
Vision: when it comes to our vision, we aim to be the number one company in Oman that
provides the latest smart home technology by manufacturing our own products with our own
internally distribution channels across the country and expanding our business into a franchise.
Long-term and short-term goals:
Short-term:
1- improving our sales and productivity
2- Learn about market trends
3- Incorporate social media marketing
4- improving our team by reciting Omani staff with larger knowledge about smart tech
5- developing a better customer service to the customer’s expectation
Long-term:
1- Select a charity to begin sponsoring
2- opening new branches or franchising
3- increasing sales by 30% to 40%
4- Expand into a new geographic market
5- Increase earnings
6- Having contracts with a construction company to implement our technology on buildings
and homes
Business Model
Finance
Bank
procurement
staff
Earned Revenues
segmentation
counseling
registration
service
Finance: Were going to include in our plan 2 funding streams: 1) bank institutions 2) earned
revenues. Earned will be used to subsidize the costs incurred by the bank and the fund will be
used on procurement, marketing, and staffing.
Procurement: Our procurement department will be securing the equipment that we need to the
customers also all the equipment that involves in our service which is building houses or rebuilt,
most of the tools that we need is technological tools like smart lights, security cameras, modern
and smart cables and pipes, heat sensors, smart switches, switchable windows, voice control,
smartphones and tablets control. All of those equipment’s will be sourced from known and
famous companies that we will have an agreement with them, and we chose those companies for
more efficiency, quality and durability.
Counselling: the counselling process starts at the company office where a registered person or a
new person comes and sits down with our employee and discuss what kind of product they
would like to install in their homes or what they would like to vision what their homes are going
to be in the future the counselor is going to offer them a variety of products and packages based
on the customer budget of course the company is going to take a fee from the new customer and
from the registered customer were going to let them pay 50% less than the new customer.
Segmentation: Our marketing team will focus on advertising our products and services to a
certain type of type of people where they will be our main objective then we will focus on the
rest they are the rich wealthy, strugglers, convenient seekers and finally social influencers these
segments are the ones who are mostly interested in our products and services and were not going
to only benefit from them just financially but we will also promote the company if our products
and services were liked by them. Social influencers will promote our products and services, the
rich and wealthy may buy huge quantities of our products and may sign a contract with us to
develop their real state, helping strugglers will enhance the image of the company.
Service: We offer 2 kinds of service in our company the first service is the installation we offer
this service to new customers who have just bought our products we install the equipment that
they have bought, and this is going to be a one-time fee for our registered customers as for new
customers there going to have to pay for each time they add a new equipment. The second
service is that we offer a yearly service check for our customers this is where our team checks if
there is any technical issues in the products that they have bought from us and it may not be
yearly check we will offer it also when there is an emergency.
Registration: We offer a registration form for our regular customers where they can get
discounts when purchasing our products and getting the latest news of the newest product in the
market also they will get a discount on the counselling and service check fee.
staff: we have a dedicated staff and each one of them has a major role in the company there is
the technical team who fix or service check or install our products then there is the counseling
team who advises our customer on the equipment’s and sees their vision and what they would
like at the best prices on the customer budget he also offers the registration form to our regulars
and finally there is the marketing team who does promotion on our products to our segmented
targets first then the rest of the public.
Legal Structure of the business
Our smart house business is a partnership. We chose this business in order to share the burden
and access knowledge and experience. We chose this business because it is going to change the
revolution of the typical houses being built. The ownership is divided equally between each
partner, where each partner owns 16.67% (divided into six partners) of the business. Of course,
all partners share profits and liabilities equally. We’re going to offer debt capital as an
investment option for our company. Mostly organizations are going to invest in our business
rather than individuals. At the end of the year, we promise our investors that we’re going to offer
them a 10% APY on their investments.
The industry
Industry Background
The smart house industry is growing in both the local and global marketplaces. In 2020, the
market value was calculated, and it was USD 72.13 billion. The expected value in 2026 is
calculated to be USD 313.95 billion, and it’s registered in the CAGR (Compound Annual
Growth Rate) by 25.3% over the forecasting period (2021–2026). Therefore, the industry is
growing. When it comes to the smart home industry, companies are looking to take advantage of
their geographic location and preserve the regulations that help the industry stabilize their
business. For example, many countries, such as South Korea, China, Canada, India, Brazil, and
Germany, are implementing green building policies. This initiative would aid in creating big,
huge opportunities for the market during the forecast period. It is also expected to promote the
adoption of energy-management smart devices, namely, smart plugs, smart meters, and
thermostats. The governments of various countries across the world are putting forward many
projects and taking initiatives to develop green buildings for sustainable living. On the other
hand, in the long-term period in terms of geography, the market is grouped into Europe, Latin
America, North America, Asia Pacific, and the Middle East and Africa. Amongst them, North
America is anticipated to hold the largest smart home market share throughout the forthcoming
years. Smart homes are always going with technological trends and getting updated every now
and then. Therefore, industry changes will not be a problem that we’ll be facing because we’re
always going with technological and industrial trends, so this will be a business advantage for
our project. Our competitors will try their best to develop their services and products. In order to
successfully compete, we need to make the service we will provide more modern and developed
than the other companies and competitors. The number of firms competing with us in the
industry is 4. The industry growth rate is 25.3% and the threat of new entrants is very low
because there are fewer companies competing in the same industry as us and the startup cost is
very high. Our company aspires to be a global player in the future by entering a smaller niche
market. We compete at a local level of competition, which requires a limited number of
resources, and we have our own distribution channels, which makes it easier for us to look into,
the availability of substitutes influences our smart homes industry positively because our
company focuses on going with the technology trend and there will always be demand for it.
However, our trending technology and high-quality services are expensive for us and for the
customer. Our important suppliers to our company are 4 (Philips, LG, Samsung, and Panasonic).
The components and materials being supplied to us are very important to our company’s success
on the other hand. Our powerful buyers are wealthy people, disabled people, and social media
influencers. When it comes to wealthy people and social media influencers, they are aiming to
live a luxury life, and on the other hand, disabled people are looking to deal easily with their
disabilities, and our services meet their needs. (3)
Competitors
Cast Oman Company (Muscat)
– Smart lights
– Smart heating/cooling system
– Smart curtains
– Smart tv’s
– Smart music system
– Audio and video systems
– Door communication system
– CCTV security system
– Wiring accessories
Enbaar Oman (Muscat)
– Light and scene
– Curtain and shades
– Security and comfort
– Whole home audio and video
TIS Smart Home (Muscat)
– Wired products
– Sensors/health, motion, security
– Audio player and speakers
– Energy meter
– Weather station
– Outdoor unit
– Lights
Smart Oman/RNS (Muscat)
– Lighting
– Comfort and convenience
– Entertainment
– Safety and security
The 4 Competitors are selling specific products for certain customers in many different
geographic locations judging from their products and location, when it comes to indirect
competitors ours are the stores and companies that provide equipment and devices that are smart
(sensors, security systems, control panels …. Etc.) (4,5,6,7)
Positioning/Niche
Positioning: Our company presents its products to its customers in safety, comfort, and
dominance on the technology front, while also offering a reliable and withstanding product to
our customers, and our service offers convenience, unique capabilities, and reliability.
Convenience: Our service makes installments and service simple and straight forward.
Capabilities include our staff’s experience in counseling and service reliability, where our staff
and service team will be available every time to satisfy the customer.
Niche: As we all know, smart houses are run by a strong technological system. To make our
products and services unique, we decided to develop our system to run the smart house. In this
case, we can serve our customers directly when a system issue occurs, and we can develop and
run our system. For the past reason, it will cost our company to create a system. That’s why
wealthy people are targeted because they can afford it, seeking freedom and complete fluidity in
the use of our products. On the other hand, this unique strategy will attract convenience seekers
and social media influencers. After all, it satisfies the demand for show-offs and luxury
lifestyles. Furthermore, before we publish our product to the market, we will offer purchase for
early adopters to get their early feedback and opinions to make a perfectly suitable product for
our customers. Last but not least, we will provide specific options for people responding with
their specific needs, especially strugglers.
Distribution Channels
Modern tech is going to use two types of distribution to sell our products and services, which are:
•
•
Ecommerce
Inside Sales Force
We are going to publish and distribute our products and services on our website in the online
marketplace. This will let us expand and widen our customer base and sales to further customers.
They will also be able to see the prices of our products and services. They will also be able to get
in contact with us to ask about our products and book counseling appointments online. Our staff
will be, of course, in charge of the inside sales force. They will offer our products and service
packages directly to our visiting customers.
The Macro-environment
Social:
The opportunity nowadays is that most people are trying to keep up with technology and use the
newest smart equipment by getting smart cars, smart phones, watches, etc. On the other hand, the
threat is that many people don’t trust technology and are afraid of system breakdowns and
hackers, and they don’t want to let a system take control of their equipment and save their data.
Technological:
The opportunity is that we are in the technology era, and it will be easy for us to get the systems
and equipment that we need and provide them, but the disadvantage is that
technology is developing rapidly, and we must keep abreast with it.
Political:
The opportunity that we have here in Oman is that the regulations and rules are easy to follow,
which will help us as business owners. It will be easy for us to implement our business and
present our services and products freely. Also, Oman is one of the safest places in the world,
which makes people more interested in having smart houses in Oman. The most common
political threats are government stability, related changes, and import restrictions on quality and
quantity of products.
Economic:
Development and employment are two of the most important economic opportunities we have.
People have begun to change their homes from an old house to a new one in order to keep up
with the development we are experiencing and to ensure a safer life. The employment factor is
also very important because of what our country is against in staffing a newly graduated student,
which will allow us to interview a large number of employees. The primary economic threat we
will face is taxes, which are the most common source of public anger these days due to the high
tax rates that are applied to a variety of goods and services.
SWOT Analysis
Strengths
High quality
products
services
Weaknesses
Limited stock
according to the
high cost
Opportunities
A great
partnership with
big companies
Threats
Product/ Service
A convenient
Offering
warehouse to keep
the high-cost
products safe
Brand/ Marketing Fully local brand The process of
Two of our
We will need a
and the location, reaching our
targeted customers big advertising
targeted
targeted customers are social media
plan and we must
customers
influencer and
do digital
known people and marketing.
the brand name
will reach to big
amount of people
Staff/HR
Partnership
Hard to find local A lot of fresh
Competitors
between six
qualified for the
graduated local
offering better job
local Omanis
positions.
labor
offers
Finance
Having 2
Paying interest
Having a big
Having to pay
funding streams rate and high
budget due to 2
high taxes
expenses in
funding streams
storing the
product and
buying it
Operations/
Owned vehicles Planning and
Contracting with
The high cost
Management
and warehouses controlling needs
operations
a lot of effort
companies
Market
Not having
Not very trusted
Be the first choice Global companies
much local
and new to the
since we are fully entering the
competitors
Omani market
local
Omani market and
be competitors
Can any of your strengths help with improving your weaknesses or combating your threats? If
so, please describe how below.
In marketing our strength, we are fully local, and it will help us in the marketing and advertising
strategy.
Based on the information above, what are your immediate goals/next steps?
Improve our market trends, improve our team by reciting Omani with larger knowledge about technology,
and will try to keep our marketing team stronger so we don’t lose clients.
Based on the information above, what are your long-term goals/next steps?
Expand our market to more customers, made contract with big companies to implement our
technology and manage our supply.
Competitive Analysis Worksheet
FACTOR
Modern
tech
Cast
Oman
Company
Smart
homes
Oman
TIS smart
home
Smart
Homes
Company
Importance
to
Customer
Products
S
S
S
S
S
1
Price
S
W
W
S
S
1
Quality
S
S
S
S
S
2
Selection
W
S
S
S
W
3
Service
S
W
W
S
Reliability
S
S
S
W
Stability
W
S
S
S
Expertise
S
S
S
S
Company
Reputation
W
S
W
S
Location
S
W
S
W
Appearance
S
S
W
W
Sales Method
W
S
S
S
Credit Policies
–
–
–
–
Advertising
W
S
W
S
Image
W
S
W
S
S
W
S
S
W
W
W
S
W
W
2
1
4
2
2
2
3
3
5
3
3
Market Research
Market research
We have chosen to conduct primary research on how we will conduct our business plan we have
made a survey and shared it with our targeted customers, and we have got great feedback after
we reviewed the survey.
Target customer
Our ideal customers are going to be students because they are the most people who answered our
survey and that are interested in our product. Also were going to benefit from them because these
types of customers will be easy to communicate and tell them of what kind of new products will
be available in the market and they are the most interested customers because they’re the ones
that would like to keep up with technology.
For Consumers
Demographics variables
Age
Gender
Occupation and education
level
Category
18-24
25-34
35-44
45-54
55+
Male
Female
Employee
Student
Retired
Unemployed
Other
Percentage
72.50%
15.00%
7.50%
5.00%
0%
47.50%
52.50%
30.00%
55.00%
2.50%
10.00%
2.50%
Product/Service Acceptance by target customers
•
•
•
•
•
•
•
Acceptance of the idea? Should we change it?
As many of our customers replied “no “to improve our Business this means they accepted
it and no change is required.
Is it unique? Will they buy it? Is it really meeting unmet need?
It is unique and customers are willing to pay to have our products it meets their demand
Customer preferences? How would you produce it? Platform OR app? Home-made
or Café? Features?
Most of our customers prefer app and the data/survey collocated previews it.
Customer demographics
Willingness to purchase your product
from the answers that we collected from the surveys it shows that 45% are very likely to
buy our product and 20% of them are likely to buy ,27.5% are feeling neutral about it,
and the second lowest parentage are the people who are unlikely to purchase our products
with, coming last is very unlikely to buy with 5% only
Willingness to pay suggested prices/ commissions
92.5% of our customers are willing to pay suggested commission
Appropriateness of the distribution channel you are using
Wholesalers
•
•
•
The total size of your target market, and what share is realistic for you to obtain
The total size of our market ranges from 30-40 people and 20% to 30% share would be
realistic to obtain.
Trends in the target market – is it growing or shrinking? How are customer needs
or preferences changing?
Trends in the markets are growing with customers demand increase in having a more
advanced product.
Opinions of your target customers about the product.
Quotes from our customers
(Your business is the best)
(Create advanced devices)
(Do in depth market search, it’s a bit compatible and China is controlling the market)
(Always consider the planet in your projects)
(Smart houses are more efficient more comfortable better place to live in)
(Try to make a good quality device with the least possible price)
(To attract customers, focus on mentioning how your idea would impact people’s daily
life and why they should go for smart houses. You could also provide a trial period for
some interested targeted customers to get them eventually sign for you services.)
(Provide more products to improve)
(Try to do smart things that makes u live in future)
References :
1. http://oee.nrcan.gc.ca/publications/infosource/pub/roomaircond/pdf/AC e Worksheet
04.pdf
2. ]. Prof.Dr.HamdyAshour, Energy saving through smart home, The Online Journal on
Power and Energy Engineering Vol-(2)-No. (3) 12.JACS10087-with-cover-page-v2.pdf
(d1wqtxts1xzle7.cloudfront.net)
3. https://www.mordorintelligence.com/industry-reports/global-smart-homesmarket-industry
4. https://cast-oman.com/home-automation/
5. https://enbaar.om/smarthome/
6. https://www.tiscontrol.com/tptis/en/index.html
7. https://www.omansmart.com/
8.
Business Plan Template for a Startup Business
General Notes
Definition
A business plan is a written document that explains and analyses an existing or proposed business venture
A startup business plan serves several purposes
• It can help convince investors or lenders to finance your business.
• It can persuade partners or key employees to join your company.
• Most importantly, it serves as a roadmap guiding the launch and growth of your new business.
• Writing a business plan is an opportunity to carefully think through every step of starting your company so
you can prepare for success.
• This is your chance to discover any weaknesses in your business idea, identify opportunities you may not
have considered, and plan how you will deal with challenges that are likely to arise.
Important considerations
• Be honest with yourself as you work through your business plan. Don’t gloss over potential problems;
instead, figure out solutions.
• A good business plan is clear and concise. A person outside of your industry should be able to understand
it. Avoid overusing industry jargon or terminology.
• Most of the time involved in writing your plan should be spent researching and thinking. Make sure to
document your research, including the sources of any information you include.
• Avoid making unsupported claims or sweeping statements. Investors, lenders and others reading your
plan will want to see realistic projections and expect your assumptions to be supported with facts.
About the template
This template includes instructions for each section of the business plan, followed by corresponding fillable
worksheet/s.
The last section in the, instructions, “Refining Your Plan,” explains ways you may need to modify your plan for
specific purposes, such as getting a bank loan, or for specific industries, such as retail.
Proofread your completed plan (or have someone proofread it for you) to make sure it’s free of spelling and
grammatical errors and that all figures are accurate.
Date and section explained
27/10/2021 – Section 1: Business
description
Business Plan Timeline
Due date (students
should complete the
Submission requirements
section by that date)
31/10/2021
No submission
01-03/11/2021 – Tutorial
Meetings with groups to discuss section 1
07 & 9/11/2021 – Section 2: The
industry and Section 3 Market
Research
Submission of sections 1 and 2 on
Moodle (Business description and
the industry).
Meetings with groups to discuss progress and feedback on
sections 1,2,3
15-17/11/2021 – Tutorial
14/11/2021
23-24/11/2021 – Section 4, 5 and
6 Marketing, operational and
financial plans
28-1/12/2021 – Tutorial
14-15 /12/2021 – Tutorial
25 /12/2022
Follow up meetings
Final submissions
2
3
Table of Contents
I.
Executive Summary …………………………………………………………………………………………………………………. 8
II.
Business Description ……………………………………………………………………………………………………………… 10
III.
The Industry…………………………………………………………………………………………………………………………. 15
IV.
The Market ………………………………………………………………………………………………………………………….. 17
V.
The Marketing Plan ……………………………………………………………………………………………………………….. 22
VI.
Operational Plan …………………………………………………………………………………………………………………… 24
VII. Financial Plan ……………………………………………………………………………………………………………………….. 28
VIII. Appendices ………………………………………………………………………………………………………………………….. 31
4
Important Notes:
When submitting your business plan, please consider the following;
1. You need to delete all the instructions and only keep your writings that describe your business.
2. When you describe a specific part, do not answer the questions that I wrote ONLY. You should describe the
section in coherent paragraphs that includes answers for my questions and also insights that I might not have
included in my questions/instructions.
Example;
1. Products and/or services: What do you sell, and how is it manufactured or provided? What are its
benefits, features and unique selling proposition? Yours won’t be the only solution (every business
has competitors), but you need to explain why your solution is better than the others, targets a
customer base your competitors are ignoring, or has some other characteristic that gives it a
competitive edge. Include details of relationships with suppliers, manufacturers and/or partners that
are essential to delivering the product or service to customers.
Bad Example
Products and/or services:
What do you sell, and how is it manufactured or provided?
We are selling fresh healthy food.
What are its benefits, features and unique selling proposition?
Yours won’t be the only solution (every business has competitors), but you need to explain why your solution is
better than the others, targets a customer base your competitors are ignoring, or has some other characteristic
that gives it a competitive edge. Include details of relationships with suppliers, manufacturers and/or partners
that are essential to delivering the product or service to customers.
Healthy food that enhance customer life
Good Example 1
5
Good Example 2
6
Instructions: Executive Summary
The Executive Summary is the most important part of your business plan. Often, it’s the only part that a
prospective investor or lender reads before deciding whether or not to read the rest of your plan. It should convey
your enthusiasm for your business idea and get readers excited about it, too.
Write your Executive Summary LAST, after you have completed the rest of the business plan. That way, you’ll have
thought through all the elements of your startup and be prepared to summarize them.
The Executive Summary should briefly explain each of the below.
1. An overview of your business idea (one or two sentences).
2. A description of your product and/or service. What problems are you solving for your target
customers?
3. Your goals for the business. Where do you expect the business to be in one year, three years, five
years?
4. Your proposed target market. Who are your ideal customers?
5. Your competition and what differentiates your business. Who are you up against, and what
unique selling proposition will help you succeed?
6. Your management team and their prior experience. What do they bring to the table that will give
your business a competitive edge?
7. Financial outlook for the business. If you’re using the business plan for financing purposes,
explain exactly how much money you want, how you will use it, and how that will make your
business more profitable.
Limit your Executive Summary to one or two pages in total.
After reading the Executive Summary, readers should have a basic understanding of your business, should be
excited about its potential, and should be interested enough to read further.
After you’ve completed your business plan, come back to this section to write your executive summary on the
next page.
7
I.
Executive Summary
(Write after you’ve completed the rest of the business plan.)
8
Instructions: Business Description
This section explains the basic elements of your business. Include each of the below:
2. The problem: Every business needs to solve a problem that its customers face. Explain what the
problem is and how your product or service solves it.
3. Company Name and description
4. Location or proposed location: If you have a location picked out, explain why you believe this is a
good location for your startup. If you haven’t chosen a location yet, explain what you’ll be looking for
in a location and why, including:
• Convenient location for customers
• Adequate parking for employees and customers
• Proximity to public transportation or major roads
• Type of space (industrial, retail, etc.)
• Types of businesses nearby
Focus on the location of your building, not the physical building itself. You’ll discuss that later, in the
Operations section.
5. Products and/or services: What do you sell, and how is it manufactured or provided? What are its
benefits, features and unique selling proposition? Yours won’t be the only solution (every business
has competitors), but you need to explain why your solution is better than the others, targets a
customer base your competitors are ignoring, or has some other characteristic that gives it a
competitive edge. Include details of relationships with suppliers, manufacturers and/or partners that
are essential to delivering the product or service to customers.
6. Competitive advantage: Do you have a patent on your product or a patent pending? Do you have
exclusive agreements with suppliers or vendors to sell a product or service that none of your
competitors sell? Do you have the license for a product, technology or service that’s in high demand
and/or short supply?
7. Company Mission, Values, Vision and goals:
a. A mission statement is a brief explanation of your company’s reason for being. It can be as short
as a marketing tagline (“MoreDough is an app that helps consumers manage their personal
finances in a fun, convenient way”) or more involved: (“Doggie Tales is a dog daycare and
grooming salon specializing in convenient services for urban pet lovers. Our mission is to provide
service, safety and a family atmosphere, enabling busy dog owners to spend less time taking care
of their dog’s basic needs and more time having fun with their pet.”) In general, it’s best to keep
your mission statement to one or two sentences.
b. What values does your business live by? Honesty, integrity, fun, innovation and community are
values that might be important to your business philosophy.
c. Vision refers to the long-term outlook for your business. What do you ultimately want it to
become? For instance, your vision for your doggie day-care center might be to become a national
chain, franchise or to sell to a larger company.
d. Specify your long- and short-term goals as well as any milestones or benchmarks you will use to
measure your progress. For instance, if one of your goals is to open a second location, milestones
might include reaching a specific sales volume or signing contracts with a certain number of
clients in the new market.
8. Business Model: Draw and describe the different components of your business model
9. Legal Structure of the business: Is your business a sole proprietorship, LLC, partnership or
corporation? Why did you choose this particular form of business? If there is more than one owner,
explain how ownership is divided. If you have investors, explain the percentage of shares they own.
This information is important to investors and lenders.
Include any product or service details, such as technical specifications, drawings, photos, patent documents and
other support information.
9
II.
Business Description
10
Instructions: The Industry
1. Industry Background: Describe your industry and what makes your business competitive: Is the industry
growing, mature or stable? What is the industry outlook long-term and short-term? How will your business take
advantage of projected industry changes and trends? What might happen to your competitors and how will your
business successfully compete? Use the five forces of Porter model to describe whether the industry is attractive
or not?
2. Competitors: One of the biggest mistakes you can make in a business plan is to claim you have “no
competition.” Every business has competitors. Your plan must show that you’ve identified yours and understand
how to differentiate your business. This section should:
List key companies that compete with you (including names and locations), products that compete with yours
and/or services that compete with yours. Do they compete across the board, or just for specific products, for
certain customers or in certain geographic areas? Also include indirect competitors. For instance, if you’re
opening a restaurant that relies on consumers’ discretionary spending, then bars and nightclubs are indirect
competitors.
3. Positioning/Niche
Now that you’ve assessed your industry, product/service, customers and competition, you should have a clear
understanding of your business’s niche (your unique segment of the market) as well as your positioning (how you
want to present your company to customers). Explain these in a short paragraph.
4. Distribution channels: What methods of distribution will you use to sell your products and/or services? These
may include:
• Retail
• Direct sales
• Ecommerce
• Wholesale
• Inside sales force
• Outside sales representatives
If you have any strategic partnerships or key distributor relationships that will be a factor in your success, explain
them here.
If you haven’t yet finalized your distribution channels, use the Distribution Channel Assessment Worksheet on the
next page to assess the pros and cons of each distribution channel you are considering.
5. The macro-environment: External factors (social, technological, economic and political), what opportunities
and threats these factors represent for your business.
6. SWOT Analysis: Use the SWOT Analysis Worksheet on the next page to identify your company’s weaknesses and
potential threats, as well as its strengths and the potential opportunities you plan to exploit.
11
Competitive Analysis Worksheet
For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for your
business and for your competitors. Then rank how important each factor is to your target customer on a scale of 1
to 5 (1 = very important; 5 = not very important). Use this information to explain your competitive advantages and
disadvantages.
FACTOR
You
Comp1
Comp2
Comp3
Comp4
Importance to
Customer
Products
Price
Quality
Selection
Service
Reliability
Stability
Expertise
Company
Reputation
Location
Appearance
Sales Method
Credit Policies
Advertising
Image
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SWOT Analysis Worksheet
Strengths
Weaknesses
Opportunities
Threats
Product/ Service
Offering
Brand/ Marketing
Staff/HR
Finance
Operations/
Management
Market
Can any of your strengths help with improving your weaknesses or combating your threats? If so, please
describe how below.
Based on the information above, what are your immediate goals/next steps?
Based on the information above, what are your long-term goals/next steps?
13
Distribution Channel Assessment Worksheet
Distribution Channel 1
Distribution Channel 2
Distribution Channel 3
Easiness of
Entry
Geographic
Distance
Costs
Competitors’
Positions
Management
Experience
Staffing
Capabilities
Marketing
Needs
14
III.
The Industry
15
Instructions: Market Research
This section provides details on your customers, your target market and how you will market your business to
those customers.
1. Market research (What research has been conducted to write the plan)
There are two kinds of research: primary and secondary. Primary market research is information you gather
yourself. This could include going online or driving around town to identify competitors; interviewing or surveying
people who fit the profile of your target customers; or doing traffic counts at a retail location you’re considering.
Secondary market research is information from sources such as trade organizations and journals, magazines and
newspapers, Census data and demographic profiles. You can find this information online, at libraries, from
chambers of commerce, from vendors who sell to your industry or from government agencies.
2. Target customer (Use evidence from Primary market research results)
Describe your target customer. (This is also known as the ideal customer or buyer persona.)
You may have more than one target customer group. For instance, if you sell a product to consumers through
distributors, such as retailers, you have at least two kinds of target customers: the distributors (businesses) and
the end users (consumers).
Identify your target customer groups, and create a demographic profile for each group that includes:
For consumers:
• Age
• Gender
• Location
•
•
•
Income
Occupation
Education level
For businesses:
• Industry
• Location
• Size
•
•
Stage in business (startup, growing, mature)
Annual sales
3. Product/Service Acceptance by target customers: This section of your plan should explain your customers’
opinions about the idea:
• Acceptance of the idea? Should we change it?
• Is it unique? Will they buy it? Is it really meeting unmet need?
• Customer preferences? How would you produce it? Platform OR app? Home-made or Café? Features?
• Customer Demographics
• Willingness to purchase your product
• Willingness to pay suggested prices/ commissions
• Appropriateness of the distribution channel you are using
• The total size of your target market, and what share is realistic for you to obtain
• Trends in the target market – is it growing or shrinking? How are customer needs or preferences
changing?
16
•
Opinions of your target customers about the product.
IV.
Market Research
17
Instructions: Marketing Plan
1. How you will promote your product/service
In this section, explain the marketing and advertising tactics you plan to use.
Advertising may include:
• Online
• Print
• Radio
• Cable television
• Out-of-home
Which media will you advertise in, why and how often?
Marketing may include:
• Business website
• Social media marketing
• Email marketing
• Mobile marketing
• Search engine optimization
• Content marketing
• Print marketing materials (brochures, flyers, business cards)
• Public relations
• Trade shows
• Networking
• Word-of-mouth
• Referrals
What image do you want to project for your business brand?
What design elements will you use to market your business? (This includes your logo, signage and interior design.)
Explain how they’ll support your brand.
2. Promotional budget
How much do you plan to spend on the marketing and advertising outreach above:
•
Before startup (These numbers will go into your startup budget)
18
•
On an ongoing basis (These numbers will go into your operating plan budget)
Use the Marketing Expenses Strategy Chart on the next page to help figure out the cost of reaching different
target markets.
Marketing Expenses Strategy Chart
Target Market 1
Target Market 2
Target Market 3
Annual Expenses
Marketing Spending
by Function
Use the Annual Marketing Budget Template and fill it with the help of the information you’ve gathered, create
your annual marketing budget.
19
3. Pricing
You explained pricing briefly in the “Products & Services” section; now it’s time to go into more detail. How do
you plan to set prices? Keep in mind that few small businesses can compete on price without hurting their profit
margins. Instead of offering the lowest price, it’s better to go with an average price and compete on quality and
service.
•
•
•
•
Does your pricing strategy reflect your positioning?
Compare your prices with your competitors’. Are they higher, lower or the same? Why?
How important is price to your customers? It may not be a deciding factor.
What will your customer service and credit policies be?
Use the Pricing Strategy Worksheet on the next page to help with your pricing.
20
Pricing Strategy Worksheet
Business Name
Which of the following pricing strategies will you employ? Circle one.
Cost Plus
Value Based
The costs of making/obtaining
your product or providing your
service, plus enough to make a
profit
Based on your competitive
advantage and brand
(perceived value)
Other: Market Based
Provide an explanation of your pricing model selection.
Include strategy info on your major product lines/service offerings. List industry/market practices and any
considerations to be discussed with your mentor.
21
V.
The Marketing Plan
22
Instructions: Operational Plan
This section explains the daily operation of your business, including its location, equipment, personnel and
processes.
1. Production
How will you produce your product or deliver your service? Describe your production methods and the equipment
you’ll use.
2. Quality control
How will you maintain consistency? Describe the quality control procedures you’ll use.
Corporate social responsibility (CSR)
a) To identify a CSR programme that is going to be implemented through/in your product/service
b) Analyze the CSR programme including the objectives, programme duration, and other related information)
c) Effectiveness of the CSR programme to be implemented
d) To consider the social and environmental consequences of your business activities (if there are any)
3. Legal environment
What type of legal environment will your business operate in? How are you prepared to handle legal
requirements? Include details such as:
a. Any licenses and/or permits that are needed and whether you’ve obtained them
b. Any trademarks, copyrights or patents that you have or are in the process of applying for
c. The insurance coverage your business requires and how much it costs
d. Any environmental, health or workplace regulations affecting your business
e. Any special regulations affecting your industry
f. Bonding requirements, if applicable
4. Management and Personnel
What type of personnel will your business need? Explain details such as:
• Draw the organizational structure of the firm
• What types of employees? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• Include job descriptions.
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?
• What type of training is needed and how will you train employees?
6.
Inventory
If your business requires inventory, explain:
• What kind of inventory will you keep on hand (raw materials, supplies, finished products)?
• What will be the average value of inventory (in other words, how much are you investing in
inventory)?
• What rate of inventory turnover do you expect? How does this compare to industry averages?
• Will you need more inventory than normal during certain seasons? (For instance, a retailer might
need additional inventory for the holiday shopping season.)
• What is your lead time for ordering inventory?
7.
Suppliers
23
List your key suppliers, including:
• Names, addresses, websites
• Type and amount of inventory furnished
• Their credit and delivery policies
• History and reliability
• Do you expect any supply shortages or short-term delivery problems? If so, how will you handle
them?
• Do you have more than one supplier for critical items (as a backup)?
• Do you expect the cost of supplies to hold steady or fluctuate? If the latter, how will you deal with
changing costs?
• What are your suppliers’ payment terms?
VI.
Operational Plan
24
Instructions: Financial Plan
Your financial plan is perhaps the most important element of your business plan. Lenders and investors will
review it in detail. Developing your financial plan helps you set financial goals for your startup and assess its
financing needs. Include the following:
1. Cost Structure
Define your specific costs for production, staff and any other expenses. List all your costs in one table.
2. Revenue Stream
State your revenue creating business activities and how you will try to increase these streams. For
example placing advertisement or getting commissions etc.
3. Sales Forecast
Anticipate your sales for one year using the attached template.
4. Start-up expenses sheet
Use the attached template to describe different expenses needed to start the business and the sources of
financing.
5. Income Statement & Balance sheet
Use the attached template to report your income statement and balance sheet.
6. Plan for Raising Funds
For Raising Capital from Bankers
Bankers want to know that you’ll be able to repay the loan. If the business plan is for bankers or other lenders,
include:
• How much money you’re seeking
• How you’ll use the money
• How that will make your business stronger
• Requested repayment terms (number of years to repay)
25
•
Any collateral you have and a list of all existing liens against your collateral
7. Economic Feasibility of the project
Use measures such as pay pack period and ROI
For Raising Capital from Investors
Investors are looking for dramatic growth, and they expect to share in the rewards. If the business plan is for
investors, include:
• Investment amount you need short-term
• Investment amount you’ll need in two to five years
• How you’ll use the money and how that will help your business grow
• Estimated return on investment
• Exit strategy for investors (buyback, sale or IPO)
• Percentage of ownership you will give investors
• Milestones or conditions you will accept
• Financial reporting you will provide to investors
• How involved investors will be on the board or in management
For a Manufacturing Business
•
•
•
•
•
•
•
•
•
Explain the operations involved in manufacturing your product/s.
What equipment is needed? What are the production/capacity limits of the equipment?
What are the production/capacity limits of the proposed physical plant?
Is specialized labor needed?
What raw materials do you need for manufacturing? Are there any special requirements for storing
these?
What quality control procedures will you use?
How will you manage inventory levels?
What is your supply chain?
Explain any new products you’re developing, or products you plan to begin developing after startup.
For a Service Business
26
•
•
•
•
•
Explain your prices and the methods used to set them.
What systems and processes will you use for ensuring consistent delivery of services?
What quality control procedures will you use?
How will you measure employee productivity?
Will you subcontract any work to other businesses? If so, what percentage of work will be subcontracted?
Will you make a profit on subcontracting?
• Explain your credit, payment and collections policies and procedures.
• How will you maintain your client base and get long-term contracts?
• Explain any new services you’re developing or services you plan to add after startup.
For a Retail Business
•
•
•
•
•
•
•
•
•
List specific brands you plan to carry that will give you a competitive advantage.
How will you manage inventory? What inventory management software will you use?
What forms of payment will you accept? What payment processing service will you use?
What point-of-sale software and hardware will you use?
Explain your markup policies. Your prices should be profitable, competitive and in line with your brand.
Initial inventory level: Find the industry average annual inventory turnover rate (available in the RMA
book). Multiply your initial inventory investment by the average turnover rate. The result should be at
least equal to your projected first year’s cost of goods sold. If not, you may need to budget more for
startup inventory.
What are your customer service policies?
How will you handle returns and exchanges?
Will your retail store also have an ecommerce site, or is one planned for the future?
For an Ecommerce Business
•
•
•
•
•
•
•
•
•
Will you sell a physical product, a service, a digital product (such as eBooks) or some combination of
these?
If you’re selling physical products, how will you brand and package them?
Will you sell on your own website, online marketplaces (such as Amazon) or both?
What technology providers and platforms will you use to run your ecommerce site?
o Web hosting service
o Web design service
o Shopping cart provider
o Payment processing service
o Fulfillment & shipping services
o Email marketing services
Can the solutions you’ve chosen quickly scale up or down as needed?
Where will you get your products? Will you manufacture them in-house, buy them from manufacturers or
use drop shippers?
How will you handle returns and exchanges?
What are your customer service policies? How will you provide customer service?
Will you use any proprietary technology of your own and if so, what advantages does that give you?
For a Software or SaaS business
•
•
What is your pricing structure? Will you use a free trial, “freemium” or paid business model?
If you offer free services or a free trial option, how will you upsell customers to a payment model? What
percentage of customers are expected to become paying customers?
27
•
•
•
•
•
•
•
•
•
•
Have you tested your software? Are any “early adopters” already using the product?
How will you encourage long-term contracts in order to create recurring revenues?
How will you manage rapidly changing markets, technologies and costs?
How will you keep your company competitive?
Will you use in-house developers or outsource this function?
How will you provide customer support?
How will you retain key personnel?
Are you using any proprietary or exclusive software that will give you a competitive edge?
How will you protect your intellectual property?
What additional products or updates to current products are you planning after launch?
After reading the Financial Plan section, the reader should understand the assumptions behind your financial
projections and be able to judge whether these projections are realistic.
VII.
Financial Plan
28
Instructions: Appendices
Don’t slow your readers down by cluttering your business plan with supporting documents, such as contracts or
licenses. Instead, put these documents in the Appendices, and refer to them in the body of the plan so readers
can find them if needed.
Below are some elements many business owners include in their Appendices.
29
1.
2.
3.
4.
5.
6.
7.
8.
9.
Agreements (Leases, contracts, purchase orders, letters of intent, etc.)
Intellectual property (trademarks, licenses, patents, etc.)
Resumes of owners/key employees
Advertising/marketing materials
Public relations/publicity
Blueprints/plans
List of equipment
Market research studies
List of assets that can be used as collateral
You can also include any other materials that will give readers a fuller picture of your business or support the
projections and assumptions you make in your plan. For instance, you might want to include photos of your
proposed location, illustrations or photos of a product you are patenting, or charts showing the projected growth
of your market.
After reviewing the Appendices, the reader should feel satisfied that the assumptions throughout the plan are
backed up by documentation and evidence.
30
VIII.
Appendices
31
Business Plan Template for a Startup Business
General Notes
Definition
A business plan is a written document that explains and analyses an existing or proposed business venture
A startup business plan serves several purposes
• It can help convince investors or lenders to finance your business.
• It can persuade partners or key employees to join your company.
• Most importantly, it serves as a roadmap guiding the launch and growth of your new business.
• Writing a business plan is an opportunity to carefully think through every step of starting your company so
you can prepare for success.
• This is your chance to discover any weaknesses in your business idea, identify opportunities you may not
have considered, and plan how you will deal with challenges that are likely to arise.
Important considerations
• Be honest with yourself as you work through your business plan. Don’t gloss over potential problems;
instead, figure out solutions.
• A good business plan is clear and concise. A person outside of your industry should be able to understand
it. Avoid overusing industry jargon or terminology.
• Most of the time involved in writing your plan should be spent researching and thinking. Make sure to
document your research, including the sources of any information you include.
• Avoid making unsupported claims or sweeping statements. Investors, lenders and others reading your
plan will want to see realistic projections and expect your assumptions to be supported with facts.
About the template
This template includes instructions for each section of the business plan, followed by corresponding fillable
worksheet/s.
The last section in the, instructions, “Refining Your Plan,” explains ways you may need to modify your plan for
specific purposes, such as getting a bank loan, or for specific industries, such as retail.
Proofread your completed plan (or have someone proofread it for you) to make sure it’s free of spelling and
grammatical errors and that all figures are accurate.
Date and section explained
27/10/2021 – Section 1: Business
description
Business Plan Timeline
Due date (students
should complete the
Submission requirements
section by that date)
31/10/2021
No submission
01-03/11/2021 – Tutorial
Meetings with groups to discuss section 1
07 & 9/11/2021 – Section 2: The
industry and Section 3 Market
Research
Submission of sections 1 and 2 on
Moodle (Business description and
the industry).
Meetings with groups to discuss progress and feedback on
sections 1,2,3
15-17/11/2021 – Tutorial
14/11/2021
23-24/11/2021 – Section 4, 5 and
6 Marketing, operational and
financial plans
28-1/12/2021 – Tutorial
14-15 /12/2021 – Tutorial
25 /12/2022
Follow up meetings
Final submissions
2
3
Table of Contents
I.
Executive Summary …………………………………………………………………………………………………………………. 8
II.
Business Description ……………………………………………………………………………………………………………… 10
III.
The Industry…………………………………………………………………………………………………………………………. 15
IV.
The Market ………………………………………………………………………………………………………………………….. 17
V.
The Marketing Plan ……………………………………………………………………………………………………………….. 22
VI.
Operational Plan …………………………………………………………………………………………………………………… 24
VII. Financial Plan ……………………………………………………………………………………………………………………….. 28
VIII. Appendices ………………………………………………………………………………………………………………………….. 31
4
Important Notes:
When submitting your business plan, please consider the following;
1. You need to delete all the instructions and only keep your writings that describe your business.
2. When you describe a specific part, do not answer the questions that I wrote ONLY. You should describe the
section in coherent paragraphs that includes answers for my questions and also insights that I might not have
included in my questions/instructions.
Example;
1. Products and/or services: What do you sell, and how is it manufactured or provided? What are its
benefits, features and unique selling proposition? Yours won’t be the only solution (every business
has competitors), but you need to explain why your solution is better than the others, targets a
customer base your competitors are ignoring, or has some other characteristic that gives it a
competitive edge. Include details of relationships with suppliers, manufacturers and/or partners that
are essential to delivering the product or service to customers.
Bad Example
Products and/or services:
What do you sell, and how is it manufactured or provided?
We are selling fresh healthy food.
What are its benefits, features and unique selling proposition?
Yours won’t be the only solution (every business has competitors), but you need to explain why your solution is
better than the others, targets a customer base your competitors are ignoring, or has some other characteristic
that gives it a competitive edge. Include details of relationships with suppliers, manufacturers and/or partners
that are essential to delivering the product or service to customers.
Healthy food that enhance customer life
Good Example 1
5
Good Example 2
6
Instructions: Executive Summary
The Executive Summary is the most important part of your business plan. Often, it’s the only part that a
prospective investor or lender reads before deciding whether or not to read the rest of your plan. It should convey
your enthusiasm for your business idea and get readers excited about it, too.
Write your Executive Summary LAST, after you have completed the rest of the business plan. That way, you’ll have
thought through all the elements of your startup and be prepared to summarize them.
The Executive Summary should briefly explain each of the below.
1. An overview of your business idea (one or two sentences).
2. A description of your product and/or service. What problems are you solving for your target
customers?
3. Your goals for the business. Where do you expect the business to be in one year, three years, five
years?
4. Your proposed target market. Who are your ideal customers?
5. Your competition and what differentiates your business. Who are you up against, and what
unique selling proposition will help you succeed?
6. Your management team and their prior experience. What do they bring to the table that will give
your business a competitive edge?
7. Financial outlook for the business. If you’re using the business plan for financing purposes,
explain exactly how much money you want, how you will use it, and how that will make your
business more profitable.
Limit your Executive Summary to one or two pages in total.
After reading the Executive Summary, readers should have a basic understanding of your business, should be
excited about its potential, and should be interested enough to read further.
After you’ve completed your business plan, come back to this section to write your executive summary on the
next page.
7
I.
Executive Summary
(Write after you’ve completed the rest of the business plan.)
8
Instructions: Business Description
This section explains the basic elements of your business. Include each of the below:
2. The problem: Every business needs to solve a problem that its customers face. Explain what the
problem is and how your product or service solves it.
3. Company Name and description
4. Location or proposed location: If you have a location picked out, explain why you believe this is a
good location for your startup. If you haven’t chosen a location yet, explain what you’ll be looking for
in a location and why, including:
• Convenient location for customers
• Adequate parking for employees and customers
• Proximity to public transportation or major roads
• Type of space (industrial, retail, etc.)
• Types of businesses nearby
Focus on the location of your building, not the physical building itself. You’ll discuss that later, in the
Operations section.
5. Products and/or services: What do you sell, and how is it manufactured or provided? What are its
benefits, features and unique selling proposition? Yours won’t be the only solution (every business
has competitors), but you need to explain why your solution is better than the others, targets a
customer base your competitors are ignoring, or has some other characteristic that gives it a
competitive edge. Include details of relationships with suppliers, manufacturers and/or partners that
are essential to delivering the product or service to customers.
6. Competitive advantage: Do you have a patent on your product or a patent pending? Do you have
exclusive agreements with suppliers or vendors to sell a product or service that none of your
competitors sell? Do you have the license for a product, technology or service that’s in high demand
and/or short supply?
7. Company Mission, Values, Vision and goals:
a. A mission statement is a brief explanation of your company’s reason for being. It can be as short
as a marketing tagline (“MoreDough is an app that helps consumers manage their personal
finances in a fun, convenient way”) or more involved: (“Doggie Tales is a dog daycare and
grooming salon specializing in convenient services for urban pet lovers. Our mission is to provide
service, safety and a family atmosphere, enabling busy dog owners to spend less time taking care
of their dog’s basic needs and more time having fun with their pet.”) In general, it’s best to keep
your mission statement to one or two sentences.
b. What values does your business live by? Honesty, integrity, fun, innovation and community are
values that might be important to your business philosophy.
c. Vision refers to the long-term outlook for your business. What do you ultimately want it to
become? For instance, your vision for your doggie day-care center might be to become a national
chain, franchise or to sell to a larger company.
d. Specify your long- and short-term goals as well as any milestones or benchmarks you will use to
measure your progress. For instance, if one of your goals is to open a second location, milestones
might include reaching a specific sales volume or signing contracts with a certain number of
clients in the new market.
8. Business Model: Draw and describe the different components of your business model
9. Legal Structure of the business: Is your business a sole proprietorship, LLC, partnership or
corporation? Why did you choose this particular form of business? If there is more than one owner,
explain how ownership is divided. If you have investors, explain the percentage of shares they own.
This information is important to investors and lenders.
Include any product or service details, such as technical specifications, drawings, photos, patent documents and
other support information.
9
II.
Business Description
10
Instructions: The Industry
1. Industry Background: Describe your industry and what makes your business competitive: Is the industry
growing, mature or stable? What is the industry outlook long-term and short-term? How will your business take
advantage of projected industry changes and trends? What might happen to your competitors and how will your
business successfully compete? Use the five forces of Porter model to describe whether the industry is attractive
or not?
2. Competitors: One of the biggest mistakes you can make in a business plan is to claim you have “no
competition.” Every business has competitors. Your plan must show that you’ve identified yours and understand
how to differentiate your business. This section should:
List key companies that compete with you (including names and locations), products that compete with yours
and/or services that compete with yours. Do they compete across the board, or just for specific products, for
certain customers or in certain geographic areas? Also include indirect competitors. For instance, if you’re
opening a restaurant that relies on consumers’ discretionary spending, then bars and nightclubs are indirect
competitors.
3. Positioning/Niche
Now that you’ve assessed your industry, product/service, customers and competition, you should have a clear
understanding of your business’s niche (your unique segment of the market) as well as your positioning (how you
want to present your company to customers). Explain these in a short paragraph.
4. Distribution channels: What methods of distribution will you use to sell your products and/or services? These
may include:
• Retail
• Direct sales
• Ecommerce
• Wholesale
• Inside sales force
• Outside sales representatives
If you have any strategic partnerships or key distributor relationships that will be a factor in your success, explain
them here.
If you haven’t yet finalized your distribution channels, use the Distribution Channel Assessment Worksheet on the
next page to assess the pros and cons of each distribution channel you are considering.
5. The macro-environment: External factors (social, technological, economic and political), what opportunities
and threats these factors represent for your business.
6. SWOT Analysis: Use the SWOT Analysis Worksheet on the next page to identify your company’s weaknesses and
potential threats, as well as its strengths and the potential opportunities you plan to exploit.
11
Competitive Analysis Worksheet
For each factor listed in the first column, assess whether you think it’s a strength or a weakness (S or W) for your
business and for your competitors. Then rank how important each factor is to your target customer on a scale of 1
to 5 (1 = very important; 5 = not very important). Use this information to explain your competitive advantages and
disadvantages.
FACTOR
You
Comp1
Comp2
Comp3
Comp4
Importance to
Customer
Products
Price
Quality
Selection
Service
Reliability
Stability
Expertise
Company
Reputation
Location
Appearance
Sales Method
Credit Policies
Advertising
Image
12
SWOT Analysis Worksheet
Strengths
Weaknesses
Opportunities
Threats
Product/ Service
Offering
Brand/ Marketing
Staff/HR
Finance
Operations/
Management
Market
Can any of your strengths help with improving your weaknesses or combating your threats? If so, please
describe how below.
Based on the information above, what are your immediate goals/next steps?
Based on the information above, what are your long-term goals/next steps?
13
Distribution Channel Assessment Worksheet
Distribution Channel 1
Distribution Channel 2
Distribution Channel 3
Easiness of
Entry
Geographic
Distance
Costs
Competitors’
Positions
Management
Experience
Staffing
Capabilities
Marketing
Needs
14
III.
The Industry
15
Instructions: Market Research
This section provides details on your customers, your target market and how you will market your business to
those customers.
1. Market research (What research has been conducted to write the plan)
There are two kinds of research: primary and secondary. Primary market research is information you gather
yourself. This could include going online or driving around town to identify competitors; interviewing or surveying
people who fit the profile of your target customers; or doing traffic counts at a retail location you’re considering.
Secondary market research is information from sources such as trade organizations and journals, magazines and
newspapers, Census data and demographic profiles. You can find this information online, at libraries, from
chambers of commerce, from vendors who sell to your industry or from government agencies.
2. Target customer (Use evidence from Primary market research results)
Describe your target customer. (This is also known as the ideal customer or buyer persona.)
You may have more than one target customer group. For instance, if you sell a product to consumers through
distributors, such as retailers, you have at least two kinds of target customers: the distributors (businesses) and
the end users (consumers).
Identify your target customer groups, and create a demographic profile for each group that includes:
For consumers:
• Age
• Gender
• Location
•
•
•
Income
Occupation
Education level
For businesses:
• Industry
• Location
• Size
•
•
Stage in business (startup, growing, mature)
Annual sales
3. Product/Service Acceptance by target customers: This section of your plan should explain your customers’
opinions about the idea:
• Acceptance of the idea? Should we change it?
• Is it unique? Will they buy it? Is it really meeting unmet need?
• Customer preferences? How would you produce it? Platform OR app? Home-made or Café? Features?
• Customer Demographics
• Willingness to purchase your product
• Willingness to pay suggested prices/ commissions
• Appropriateness of the distribution channel you are using
• The total size of your target market, and what share is realistic for you to obtain
• Trends in the target market – is it growing or shrinking? How are customer needs or preferences
changing?
16
•
Opinions of your target customers about the product.
IV.
Market Research
17
Instructions: Marketing Plan
1. How you will promote your product/service
In this section, explain the marketing and advertising tactics you plan to use.
Advertising may include:
• Online
• Print
• Radio
• Cable television
• Out-of-home
Which media will you advertise in, why and how often?
Marketing may include:
• Business website
• Social media marketing
• Email marketing
• Mobile marketing
• Search engine optimization
• Content marketing
• Print marketing materials (brochures, flyers, business cards)
• Public relations
• Trade shows
• Networking
• Word-of-mouth
• Referrals
What image do you want to project for your business brand?
What design elements will you use to market your business? (This includes your logo, signage and interior design.)
Explain how they’ll support your brand.
2. Promotional budget
How much do you plan to spend on the marketing and advertising outreach above:
•
Before startup (These numbers will go into your startup budget)
18
•
On an ongoing basis (These numbers will go into your operating plan budget)
Use the Marketing Expenses Strategy Chart on the next page to help figure out the cost of reaching different
target markets.
Marketing Expenses Strategy Chart
Target Market 1
Target Market 2
Target Market 3
Annual Expenses
Marketing Spending
by Function
Use the Annual Marketing Budget Template and fill it with the help of the information you’ve gathered, create
your annual marketing budget.
19
3. Pricing
You explained pricing briefly in the “Products & Services” section; now it’s time to go into more detail. How do
you plan to set prices? Keep in mind that few small businesses can compete on price without hurting their profit
margins. Instead of offering the lowest price, it’s better to go with an average price and compete on quality and
service.
•
•
•
•
Does your pricing strategy reflect your positioning?
Compare your prices with your competitors’. Are they higher, lower or the same? Why?
How important is price to your customers? It may not be a deciding factor.
What will your customer service and credit policies be?
Use the Pricing Strategy Worksheet on the next page to help with your pricing.
20
Pricing Strategy Worksheet
Business Name
Which of the following pricing strategies will you employ? Circle one.
Cost Plus
Value Based
The costs of making/obtaining
your product or providing your
service, plus enough to make a
profit
Based on your competitive
advantage and brand
(perceived value)
Other: Market Based
Provide an explanation of your pricing model selection.
Include strategy info on your major product lines/service offerings. List industry/market practices and any
considerations to be discussed with your mentor.
21
V.
The Marketing Plan
22
Instructions: Operational Plan
This section explains the daily operation of your business, including its location, equipment, personnel and
processes.
1. Production
How will you produce your product or deliver your service? Describe your production methods and the equipment
you’ll use.
2. Quality control
How will you maintain consistency? Describe the quality control procedures you’ll use.
Corporate social responsibility (CSR)
a) To identify a CSR programme that is going to be implemented through/in your product/service
b) Analyze the CSR programme including the objectives, programme duration, and other related information)
c) Effectiveness of the CSR programme to be implemented
d) To consider the social and environmental consequences of your business activities (if there are any)
3. Legal environment
What type of legal environment will your business operate in? How are you prepared to handle legal
requirements? Include details such as:
a. Any licenses and/or permits that are needed and whether you’ve obtained them
b. Any trademarks, copyrights or patents that you have or are in the process of applying for
c. The insurance coverage your business requires and how much it costs
d. Any environmental, health or workplace regulations affecting your business
e. Any special regulations affecting your industry
f. Bonding requirements, if applicable
4. Management and Personnel
What type of personnel will your business need? Explain details such as:
• Draw the organizational structure of the firm
• What types of employees? Are there any licensing or educational requirements?
• How many employees will you need?
• Will you ever hire freelancers or independent contractors?
• Include job descriptions.
• What is the pay structure (hourly, salaried, base plus commission, etc.)?
• How do you plan to find qualified employees and contractors?
• What type of training is needed and how will you train employees?
6.
Inventory
If your business requires inventory, explain:
• What kind of inventory will you keep on hand (raw materials, supplies, finished products)?
• What will be the average value of inventory (in other words, how much are you investing in
inventory)?
• What rate of inventory turnover do you expect? How does this compare to industry averages?
• Will you need more inventory than normal during certain seasons? (For instance, a retailer might
need additional inventory for the holiday shopping season.)
• What is your lead time for ordering inventory?
7.
Suppliers
23
List your key suppliers, including:
• Names, addresses, websites
• Type and amount of inventory furnished
• Their credit and delivery policies
• History and reliability
• Do you expect any supply shortages or short-term delivery problems? If so, how will you handle
them?
• Do you have more than one supplier for critical items (as a backup)?
• Do you expect the cost of supplies to hold steady or fluctuate? If the latter, how will you deal with
changing costs?
• What are your suppliers’ payment terms?
VI.
Operational Plan
24
Instructions: Financial Plan
Your financial plan is perhaps the most important element of your business plan. Lenders and investors will
review it in detail. Developing your financial plan helps you set financial goals for your startup and assess its
financing needs. Include the following:
1. Cost Structure
Define your specific costs for production, staff and any other expenses. List all your costs in one table.
2. Revenue Stream
State your revenue creating business activities and how you will try to increase these streams. For
example placing advertisement or getting commissions etc.
3. Sales Forecast
Anticipate your sales for one year using the attached template.
4. Start-up expenses sheet
Use the attached template to describe different expenses needed to start the business and the sources of
financing.
5. Income Statement & Balance sheet
Use the attached template to report your income statement and balance sheet.
6. Plan for Raising Funds
For Raising Capital from Bankers
Bankers want to know that you’ll be able to repay the loan. If the business plan is for bankers or other lenders,
include:
• How much money you’re seeking
• How you’ll use the money
• How that will make your business stronger
• Requested repayment terms (number of years to repay)
25
•
Any collateral you have and a list of all existing liens against your collateral
7. Economic Feasibility of the project
Use measures such as pay pack period and ROI
For Raising Capital from Investors
Investors are looking for dramatic growth, and they expect to share in the rewards. If the business plan is for
investors, include:
• Investment amount you need short-term
• Investment amount you’ll need in two to five years
• How you’ll use the money and how that will help your business grow
• Estimated return on investment
• Exit strategy for investors (buyback, sale or IPO)
• Percentage of ownership you will give investors
• Milestones or conditions you will accept
• Financial reporting you will provide to investors
• How involved investors will be on the board or in management
For a Manufacturing Business
•
•
•
•
•
•
•
•
•
Explain the operations involved in manufacturing your product/s.
What equipment is needed? What are the production/capacity limits of the equipment?
What are the production/capacity limits of the proposed physical plant?
Is specialized labor needed?
What raw materials do you need for manufacturing? Are there any special requirements for storing
these?
What quality control procedures will you use?
How will you manage inventory levels?
What is your supply chain?
Explain any new products you’re developing, or products you plan to begin developing after startup.
For a Service Business
26
•
•
•
•
•
Explain your prices and the methods used to set them.
What systems and processes will you use for ensuring consistent delivery of services?
What quality control procedures will you use?
How will you measure employee productivity?
Will you subcontract any work to other businesses? If so, what percentage of work will be subcontracted?
Will you make a profit on subcontracting?
• Explain your credit, payment and collections policies and procedures.
• How will you maintain your client base and get long-term contracts?
• Explain any new services you’re developing or services you plan to add after startup.
For a Retail Business
•
•
•
•
•
•
•
•
•
List specific brands you plan to carry that will give you a competitive advantage.
How will you manage inventory? What inventory management software will you use?
What forms of payment will you accept? What payment processing service will you use?
What point-of-sale software and hardware will you use?
Explain your markup policies. Your prices should be profitable, competitive and in line with your brand.
Initial inventory level: Find the industry average annual inventory turnover rate (available in the RMA
book). Multiply your initial inventory investment by the average turnover rate. The result should be at
least equal to your projected first year’s cost of goods sold. If not, you may need to budget more for
startup inventory.
What are your customer service policies?
How will you handle returns and exchanges?
Will your retail store also have an ecommerce site, or is one planned for the future?
For an Ecommerce Business
•
•
•
•
•
•
•
•
•
Will you sell a physical product, a service, a digital product (such as eBooks) or some combination of
these?
If you’re selling physical products, how will you brand and package them?
Will you sell on your own website, online marketplaces (such as Amazon) or both?
What technology providers and platforms will you use to run your ecommerce site?
o Web hosting service
o Web design service
o Shopping cart provider
o Payment processing service
o Fulfillment & shipping services
o Email marketing services
Can the solutions you’ve chosen quickly scale up or down as needed?
Where will you get your products? Will you manufacture them in-house, buy them from manufacturers or
use drop shippers?
How will you handle returns and exchanges?
What are your customer service policies? How will you provide customer service?
Will you use any proprietary technology of your own and if so, what advantages does that give you?
For a Software or SaaS business
•
•
What is your pricing structure? Will you use a free trial, “freemium” or paid business model?
If you offer free services or a free trial option, how will you upsell customers to a payment model? What
percentage of customers are expected to become paying customers?
27
•
•
•
•
•
•
•
•
•
•
Have you tested your software? Are any “early adopters” already using the product?
How will you encourage long-term contracts in order to create recurring revenues?
How will you manage rapidly changing markets, technologies and costs?
How will you keep your company competitive?
Will you use in-house developers or outsource this function?
How will you provide customer support?
How will you retain key personnel?
Are you using any proprietary or exclusive software that will give you a competitive edge?
How will you protect your intellectual property?
What additional products or updates to current products are you planning after launch?
After reading the Financial Plan section, the reader should understand the assumptions behind your financial
projections and be able to judge whether these projections are realistic.
VII.
Financial Plan
28
Instructions: Appendices
Don’t slow your readers down by cluttering your business plan with supporting documents, such as contracts or
licenses. Instead, put these documents in the Appendices, and refer to them in the body of the plan so readers
can find them if needed.
Below are some elements many business owners include in their Appendices.
29
1.
2.
3.
4.
5.
6.
7.
8.
9.
Agreements (Leases, contracts, purchase orders, letters of intent, etc.)
Intellectual property (trademarks, licenses, patents, etc.)
Resumes of owners/key employees
Advertising/marketing materials
Public relations/publicity
Blueprints/plans
List of equipment
Market research studies
List of assets that can be used as collateral
You can also include any other materials that will give readers a fuller picture of your business or support the
projections and assumptions you make in your plan. For instance, you might want to include photos of your
proposed location, illustrations or photos of a product you are patenting, or charts showing the projected growth
of your market.
After reviewing the Appendices, the reader should feel satisfied that the assumptions throughout the plan are
backed up by documentation and evidence.
30
VIII.
Appendices
31
5. Legal environment
What type of legal environment will your business operate in? How
are you prepared to handle legal requirements? Include details such as:
a. Any licenses and/or permits that are needed and whether
you’ve obtained them
b. Any trademarks, copyrights or patents that you have or are
in the process of applying for
c. The insurance coverage your business requires and how
much it costs
d. Any environmental, health or workplace regulations
affecting your business
e. Any special regulations affecting your industry
f. Bonding requirements, if applicable
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it in detail. Developing your financial plan helps you set financial goals for your startup and assess its financing
needs. Include the following:
1 Cost Structure
Cost structure
Staff
Fixed or Variable cost
Variable
.
Cost
Consultant ( 700
OMR/month)
Research Team ( 450
OMR/month)
Repair and installation
( 500 OMR/month)
Secretaire (450
OMR/month).
350 OMR/month
.
Rent
Variable
Loan
Interior design
Service and maintenance
equipment
Promotional Budget
Fixed
Fixed
Fixed
1000 OMR
1500 OMR
Variable
Signage Board
Electricity, water, and internet
bill
Fixed
Variable
100 OMR/month and
1200 OMR/year
700 OMR
Electricity ( 50
OMR/month)
Water ( 35
OMR/month)
Internet (35
OMR/month).
Fixed
Legal Environmental procedure
cost
Fire extinguisher
Variable
30 OMR/Year
2. Revenue Stream
State your revenue creating business activities and how you will try to increase these streams. For
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