WHAT SHOULD A BUSINESS PLAN COVER?
A business plan is a ‘Plan for your Business’. It is not a document that you make for the investors. It is a document that you should prepare for yourself. Writing down your business plan helps you think through the assumptions clearly, and often writing helps you identify impracticalities in the through process.
Yes, for investor presentations too, a business plan is necessary.
Broadly speaking, a business plan should communicate the following to an investor:
• What are you selling and to whom?
• How large do you see the company growing to – what is your own aspiration for the company?
• How are you going to implement it?
• How are you going to make money?
• Why are you the right team for the investors to invest in ?
3. Key decision making points for investors
Will this team deliver
Is the need /opportunity real
Is the market size large and can this venture scale
Is there a Sustainable Competitive Advantage
Are the assumptions practical
4. Team Name
One line business description:
e.g. “We are an online music release platform for artistes to well or
share their music’
City:
Stage: i.e. concept, post-pilot stage, growth stage
Contact Person:
E-mail id:
Mobile:
5. Overview of your business
Should answer the questions “Who will pay how much, to
whom and for what”
•What is your service/product/concept? i.e. what do you do? i.e.
Concept
•Whom is this service targeted at? i.e. your customers/consumers?
i.e Who will pay
•What is the business model? I.e. how much will they pay and to
whom
•What is the pain point you are addressing or what is the opportunity
you are targeting? i.e. the need/value proposition
6. Team
• Brief description of each team member with key points on
what he/she brings to the team [e.g. someone could lead
technology, someone could lead marketing, etc.]
7. Product / Service Differentiator
• Highlight the uniqueness of your offering i.e. why would your
users be excited about your offering?
8. What is the size of the opportunity
• Potential
• What markets are you addressing e.g. India, global, etc. – be
specific for the 18 – 24 months horizon
9. Business model e.g. how do you plan to make
money?
How are you going to make money
e.g. Our business model is to charge customers Rs____ per
month for the service. Payment will be collected in advance for a
quarter.
What price point and how does that translate into revenue
10. Implementation plan
How do you intend to implement this concept?
•Operations: procurement/supply chain/logistics/fulfillment, etc.
•Marketing: how will you get customers
•Org chart
•Mention your key assumptions, and highlight if different than
generally accepted numbers
11. Your goals
• In the next 3 – 6 months
• In the next 12 – 18 months or 24 months
• In the next 5 years
• Indicate when you become profitable
Current achievements / status:
12. Competitive landscape
• Who will you compete with? [current or in future]
• Why would someone choose you over them?
• Why do you have a chance to be a dominant player?
13. Funding objective
• How much do you
need
• What do you need the
money for i.e. what will
you achieve with this
money, when do you
see profitability
Also mention any fund
raising history, if any