The following is a template for preparing a business plan based on the format of Mati Ra'anana. The format presents the outline and explains what to write down and how to tell the plan. Following the format we will be happy to assist you in preparing the financial analysis and forecasts of the business plan.
The format shown is a recommendation only. Business plans can be writen in many different variations, depending on the interest and choice of the plan writer. The suggested format is one of many options.
Confidentiality
This business plan is the property of the company and is subject to the norms of confidentiality. The plan includes information intended only for the person who received it. Upon receipt of this plan , the recipient agrees that:
-
In the event that the recipient does not wish to be involved in the venture, this document will be returned by him to the above address as soon as possible.
-
The recipient will not copy, photocopy, fax or duplicate any part, nor distribute it in whole or in part without the express written permission of the company.
-
All information contained in the plan shall be deemed confidential and company property, and the recipient shall treat it with the same respect and confidentiality as it may attribute to the reports, plans and information of its own company.
The information in this document is forward-looking information, including risks and uncertainties. The Company's actual business results may differ materially from these forecasts. The Company shall not be liable for failure to comply with the business results detailed below, and it may change these forecasts at any time without notice.
This document is not an offer of sale, a tender or a tender offer.
Table of Contents
A table of contents must be posted according to the chapters and sub-chapters of the business plan.
Executive summary
The purpose of the executive summary is to present the main points. Many of the business plan readers (investors, senior executives) focus on this section and carefully review other parts only if necessary. Therefore, it is crucial to present the remarks in the abstract, both in terms of bringing the main points of the matter and in terms of attracting interest from the reader. The summary (Is customary 2-3 pages) will succinctly cover the following topics:
-
The purpose of the business plan
-
The need the venture comes to answer (What is the business opportunity)
-
The essence of the market and its trends
-
Product or service description, product uniqueness
-
Brief description of the leading team
-
Brief description of the strategy and objectives
-
The required investment
-
Summary of profit and loss forecasts
-
Sources and uses
Company - Intended for an existing business or company
In this chapter, you should write a background on the company, when it was founded, who owns it, what's the company's activity since its inception (sales, profits and investments), milestones in company's lifetime (breakthroughs, crises etc.).
The Product or Service
This chapter presents the product from the consumer's point of view in terms of innovation, technology, technical parameters, positioning in relation to competing solutions and the manner in which the consumer will use the product. It is recommended to add pictures or sketches of the product.
The Market
This chapter focuses on the market to which the product is addressed. The value / supply chain of the market and its dynamics (competitors, wholesalers and major retailers) should be analyzed. What are the prices at which products with similar characteristics are sold (Table) What is the relative advantage of the product / service and its sales potential in each of the markets you intend to contact? It is also important to note the barriers to entry into the market and how you intend to deal with them.
In the market analysis, the following items should be considered:
-
General background on the industry / area
-
Who is the target audience of the product or service, what is the consumer profile
-
Market potential: market size (in money) and forecast for the next few years
-
Entry barriers to the market
It is recommended in this chapter to use graphs and tables and references of reliable sources of information about the data.
Competitive Analysis
It is customary to begin analyzing competitors by defining criteria for comparison. In places where the criterion is qualitative, it is customary to present it in the form of a quantitative score (for example, in a video business, the quality of the video will be ranked from 1 to 10).
In this sub-section we review the competing factors, describe them succinctly from an organizational point of view (a link to the organization's website, when its activity started, etc.), a description of the product or service they offer, and analysis of the product / service according to the defined criteria.
Business Strategy & Milestones
Specify what strategic objectives (including estimated timetable) and milestones (preferably on the Janet axis).
If the company has a special business model, it is worth noting in this chapter.
What is the business strategy for leveraging firm activity?
It is customary to include in this chapter the basic assumptions and critical factors for the success of the implementation (eg, new regulation, growth / recession forecasts, sectoral developments, social and technological developments).
Marketing & Selling Plan
The planwill include guidelines for product positioning and pricing, sales promotion strategies, and the marketing budget for implementing the plan. It is important to describe the marketing mix & system.
Production Plan (only in case it is a manufacturing business)
This chapter will describe the main processes in manufacturing or providing the service, details of the necessary means and facilities, working policies with subcontractors and business partners.
Organizational Structure & Personnel Planning
It is also desirable to write here tables of the costs of manpower required for implementation, including changes and adjustments expected according to the stages of development of the company. It is customary to illustrate the organizational structure by means of a basic block scheme in which the various entities will be presented (management, research and development, operations, etc.).
Management Team & Key Personnel
This chapter presents the entrepreneurs and members of the management team. A CV summary is usually included, while full CVs are usually presented in an appendix. In the abstract it is recommended to emphasize the man's experience and skills in accordance with the new project. In case the team is partial, the gaps in staffing should be emphasized.
Funding & Financial Planning
Basic assumptions for analysis - even if these have already appeared in the document, should be repeated here in a concentrated manner, as there will be investors who will carefully read only this part.
The expenditure description includes salary expenses, investment in assets (such as buildings, equipment). These expenditures develop over time - typically presented at a quarterly / month resolution in the first year, and at a more rough (annual) resolution in the coming years.
A five-year sales forecast based on market penetration, maturity of external processes, etc. Similar to the expenditure section, the forecast will be presented at high resolution in the first period and at a more rough (annual) resolution later on.
Profit and loss forecast for the first years (customary for 5 years).
Balance-point analysis return on investment period.
5-year cash flow forecast.
Funding required: maximum, and over the years.
Appendices
The appendices will usually include:
-
Full resume of the entrepreneurs and the management team
-
Sources of information and references cited in the plan
-
Data that confirm what was claimed in the plan (for example, in the case of a small business, vendor quotes)
The format and materials therein are exclusive intellectual property of Mati Ra'anana and may not be used without the prior written permission of Mati Ra'anana.