Business Plan Project Help Guide
The following outline for your business plan is a guide to ensure that all pertinent factors are evaluated and presented
in a concise, structured way that will enable you as the entrepreneur and potential investors or partners to assess the
viability and soundness of your proposed business venture.
Your entire business plan should be concise. It is to be submitted as a printed Word document not exceeding 10
pages, with maximum of 1.5 line spacing and 10-12 pt font, including the cover page and table of contents.
A required Excel financial statement (described in Section VI) is to be included with your plan, and is not included in
the page count limitation. The financial statement will be separately printed and attached to the Word document
business plan with the business name clearly indicated. An Excel template will be provided to you for the financial
statement and we will review it during an upcoming class.
____________________________________________________________________________________________
Cover PageYour cover page should say the words “Business Plan,” and should include:
– Names of All Team Members
– Business name
– Business Address: Use: Berkeley City College, 2050 Center St. Berkeley, CA
– Website of business
– Telephone number
– E-mail address
– Date plan was completed (or revised)
Table of Contents
Your table of contents provides readers with a quick and easy way to find particular sections of the plan.
All pages of your business plan should be numbered and the table of contents should include page
numbers. After you assemble your plan and number your pages, go back to the table of contents and insert
page numbers.
Section I. Executive Summary
The executive summary is what most readers will go to first. If it is not good, it may be the last thing they
read about your company. Investors read executive summaries before looking at the rest of a
plan to determine whether or not they want to learn more about a business. Other readers will also go first
to your executive summary to get a snapshot of your business and to gauge your professionalism and the
viability of your business.
Make yours stand out by delivering a strong message right from the start. This section should answer briefly the basic
questions an investor or potential partner would ask.
– Who is on the team?
– What business is your company in?
– Why should we invest in your product or service? – What is the “WHY?” behind your business
– How will you achieve the potential in your business model?
– How much money is required
It is easiest to write this section last. Complete the rest of the plan and then write the executive summary. Aim to
keep this to one page or less. Make it compelling, but concise.
Section II. Business Concept and Background
Your business descriiption is your vision, and includes: who you are, what you will offer, what market needs you will
address, and why your business idea is viable. It should describe exactly what you will be selling, and why people or
businesses will buy it. How is your product different from similar items already on the market?
Discussion of your business
a. Mission Statement
The discussion of your company should begin with your mission statement – a two or three sentence statement of the
purpose of your business and to whom your product or service is targeted. Why are you in this business?
A well-thought out, well-articulated statement can help you become a success with customers or anyone else. It will
elicit additional questions and comments and get the ball rolling with prospects. It will show that you understand your
business, are clear with its purpose, and know who your customers are.
b. General Descriiption of Your Business – what is the Business Concept?
Once you have your mission statement, you can then discuss the more “technical” aspects of your company. This
section of the plan should include:
i. Type of business you’re planning to enter
Your business should fall in one of several categories. Is your business retail, wholesale, service,
manufacturing, construction, professional, or import and export? What is the product or service you propose
to offer. Briefly describe it here as an introduction, and you will elaborate on it in more detail in a later
section. This section is intended to orient the reader to your general idea.
ii. Business Name
– Make your name memorable. Forgettable names are those of people (like O’Brien Web Design), those
that include geographic terms (like Westside Health Foods) and names that literally describe a product
or service (like Appliance Sales and Repair, Inc.). Remember, you want to distinguish yourself from
your competitors.
– Your name should be appealing and easy to use. Choose a name that’s easy to spell and
pronounce, and that is appealing to both eye and ear. Make sure that any images or associations it
evokes will suit your customer base.
– Avoid geographical names A geographical name may no longer fit if your business expands its sales
or service area. If you open Berkeley Aquariums & Fish, for instance, will it be a problem if
you want to open a second store in San Francisco? Especially if you plan to sell products
on the Internet, you should think twice about giving your business a geographic identifier.
– Don’t limit expanded product lines. Don’t choose a name that might not be representative of future
product or service lines. For instance, if you start a business selling and installing canvas awnings using
the name Sturdy Canvas Awnings, your name might be a burden if you decide to also start selling other
products.
iii. Business Location
– Will your business be on-line only, or have a brick and mortar location, or some combination of both?
– If a physical location: Choose the Location of Your Business Wisely – Whether you have a service,
manufacturing, or retail business, selecting the location for your business will be one of the most
important decisions you make. A good location can offset other errors in judgment, but a poor location
will kill even the best business idea. Think about traffic flow, foot traffic, barriers to access, fit of your
business with the neighborhood.
c. Business Background Information
Briefly described how this business idea came to be. Why did you choose to pursue this venture? The “Why” should
convey the story behind the passion, interest, or desire you have for the product or service you are offering, as well
as any history or experiences that have led up to it.
d. Personal Profiles
Background Information about Team Members: A short biography of each team member indicating their skills,
experience, education, and any particular connections to the product or service offering being proposed. This should
be no more than one short paragraph about each team member. The investor is going to be looking for assurances
that their investment will be well-managed by experienced and responsible individuals, with little risk to a return on
their investment.
Section III. Descriiption of Products/Services
a. Descriiption of the product or services you’ll be offering
Describe the specific products and services you will be offering, and characteristics such as quality, price point,
customer service. Be specific in showing how you will give your business a competitive edge. For example, your
business will be better because you will supply a full line of products; competitor A doesn’t have a full line. You’re
going to provide service after the sale; competitor B doesn’t support anything he sells. Your merchandise will be of
higher quality. You’ll give a money-back guarantee.
b. Stress Your Products Uniqueness (UPS – Unique Selling Proposition)
This information sets your product or service apart from your competition.
Without a USP, your product or service will appear drab and there will be no compelling reason for people to buy it.
What would some USPs be? For a food product, it could be a proprietary recipe (like Kentucky Fried Chicken’s secret
recipe) or a special way the food is served (like Boston Market’s hand-carved turkey). OXO Good Grips, a maker of
kitchen gadgets, set itself apart by using ergonomically designed grips and handles on all its products. Tower
Records’ USP would be its broad selection of all types of music and its knowledgeable floor staff. Why will your
products or services be successful in the marketplace?
c. Product or Service Development and Production Plan
Describe the current status of your product/service in terms of its development. Does it exist currently? If not,
describe what is required to develop the product or service to the point that it is ready for market.
For services this might include defining and mapping all steps in the service delivery process, and the resources,
equipment, etc., that are required to actually bring it to market and deliver the service.
For a product, such as a software application, it would include all of the software engineering, development, testing,
and any other requirements (computer equipment, website hosting, paywalls, etc., needed to launch, maintain, and
support. For other products, it may include design and build of a prototype, manufacturing partnerships, etc. You
should include the estimated cost and timeline for all product/service development required to be market ready.
d. Product/Service Pricing Strategy
Discuss what you will charge for your product or service and how you derived the price. For example, a
luxury gift importing business sets prices not only to cover costs and make a profit but to position its products as
luxury items. A printing shop with a good location charges slightly more than its competition because it has a
convenient location and it has determined that the market will bear the higher price.
Once you have briefly explained your pricing and rationale, discuss where this pricing strategy places you
in the spectrum of the other providers of this product or service.
Section IV. Legal, Management and Operations
a. Legal Structure of the Business
There is no one legal structure that’s best for all small businesses. Whether you’re better off starting as a sole
proprietor or choosing one of the more complicated organizational structures such as a partnership or a corporation
usually depends on several factors, including the size and profitability of your business, how many people will own it
and whether it will entail liability risks not covered by insurance. Use your textbook, class notes, outside research, or
ask the instructor to help guide this decision.
b. Management Team and Ownership
A good management team can take even a mediocre idea and make it work. In fact, strong
entrepreneurial teams have been known to move from business idea to business idea, repeatedly
creating and running thriving companies. Conversely, weak management often cannot build a
strong business out of even the best idea. For this reason, the management section of your business
plan must demonstrate that the team you have assembled, or will assemble, is a winner. Each
member of management must of course be talented and have experience relevant to your business,
but it is also important that the people on your team have complementary skills.
Create a descriiption of each member’s contribution to the venture including the responsibilities
and expertise of each person. Many lenders and venture capitalists base their investment decisions
on the strength of the company’s principals. Demonstrating that your management team possesses,
or will possess, an array of complementary skills will help convince investors that your business
has a bright future.
Ownership
A short section on who owns and controls your company will help readers derive a better understanding
of who will be making decisions. Potential lenders, many of whom will require a significant stake in the
company in exchange for funds, will also be interested in what portion of the company’s equity is
available.
c. Administrative and Operations Personnel
To start – identify the key business functions required to operate and support your business, for example:
Accounting, Accounts Payable/Receivable, Human Resources, Production, Quality Assurance Sales, Distribution,
Customer Support, etc. For positions involving skills or experience that will you have yet to fill, detail who you will
need to hire to achieve the goals set out in your plan. Describe the talents this person needs to possess and how the
addition of that person will help the company meet its objectives.
When starting a business, a single individual may need to cover more than one functional area due to limited financial
resources. Be sure to have major categories of business management covered such as marketing, sales (including
customer relations and service), production and quality assurance, administration. You do not have to have personnel
devoted to each of these areas, but you should have people who will be able to assume these responsibilities as
needed.
Section V. The Marketing Plan
A. Industry Descriiption
Provide a general overview of the industry, its current and future trends, and how your business fits within the
industry. Refer to the North American Industry Classification System website from the US Government for guidance
in determining the appropriate industry. You can then do research on this industry in order to identify current trends,
etc. https://www.census.gov/eos/www/naics/
B. Market Analysis
This section is designed to provide enough facts to convince an investor, potential partner or other reader
that your business has enough customers in a growing industry, and can earn sales DESPITE the
competition.
You must make a number of assumptions when completing this section. For example, the percentage of
available customers that you expect will pay for your product or service, called potential market
penetration, is a key estimate in determining the amount of money you will make if every potential
customer bought something from you. (Potential sales revenue.) No one expects you to know how many
sales you will make during the first year or two, but you can provide fairly accurate estimates by making
some educated assumptions based on your research.
Start with Identifying Your Target Customers
Describe your target customers in terms of common identifiable characteristics. This descriiption defines the
characteristics of the people you want to sell to and should indicate, among other things, whether your customers are
cost or quality conscious, under what circumstances they buy, and what types of concerns they have. What are their
needs?
You should be able to answer these questions: ·
– Who are they?
– Where are they?
– What do they need?
– How do they make their buying decisions?
– Where do they buy?
– How do you reach them with your marketing and sales messages?
Market Size/Trends
This section defines the total market size as well as the slice of the market your business will target. Use
numbers as well as trend information to make a case for a viable current market and its growth potential.
Sample Market Size Statement:
H-O Designs, an office designer targeting home-based workers in the Philadelphia area, did extensive
research on the number of people in its region that work from home. Here’s how it described its market
size and trends in its business plan:
The home-based business market is the fastest growing segment of the U.S. economy. There are currently
40 million people who work full or part-time or after hours from their homes according to XYZ
Consulting. Fewer corporate opportunities, advances in communications technology, the desire to spend
more time with one’s family, are forecasted to increase that number to 60 million by the year 2000.
In Philadelphia and its environs, 145,000 home-based businesses were started last year alone, according to
Quaker State Business Journal. In addition, several large employers, most notably ABC Pharmaceuticals
and ZZZ Computers, instituted telecommuting programs, giving 20,000 employees the chance to work at
least part-time from home.
The specific research related to this market analysis begins with statistics that provide total numbers of
households, classrooms, businesses, and workers in a market. These are your basic demographics. What
you need depends on whether you’re looking at businesses, households, or individuals as your main target
groups. When possible, you should be able to segment households by income level, businesses by size,
and workers by job type, education, and other factors. Employment statistics can add information about
types of workers and their education and background.
C. Competition
Present a short discussion of who the competitors would be for your business. You should then explain why you think
you can capture a share of their business. The competition section indicates where your products or services fit in the
competitive environment (lower price, better quality, faster or better service, unique product features).
D. Estimated Sales
Estimated sales for your business are based on your assessment of: the advantages of your product or
service, your customers, the size of your market, and your competition. This should include sales in units
and dollars for the next three years, with the first year broken down by quarter if that’s appropriate for
your industry. Use a one-paragraph summary to justify your projections.
E. Sales and Marketing Strategies
This section of your business plan describes both the strategy and tactics you will use to get customers to
buy your products or services. The three components of your sales and marketing section include:
– Strategy
– Method of Sales
– Advertising and Promotion
i. Strategy
In previous sections, you’ve been asked to define your product, positioning, target customer,
market, competition, and pricing. Now you need to wrap up all those assumptions into a cogent sales and
marketing strategy. Think of this statement as an action plan for how you will get customers to buy your
products. It will support the tactics you describe later on in this section.
Your strategy may be only a few sentences in length, or it can be a couple of paragraphs. Important
elements for a sales and marketing strategy include who you are targeting with your initial push and what
customers you have designated for follow-up phases. Other elements of a sales and marketing strategy
are:
– How will you find your prospects, and once you find them, how you plan to educate them about
– your product?
– What features of your product or service you emphasize to get customers to notice your product.
– Any sort of innovative marketing or sales techniques you will employ. For example, you may sell
– your product on-line when your competitors use only traditional retail channels.
– Will you focus your efforts locally, regionally, nationally or internationally? Do you plan to
– extend your efforts beyond your initial region? Why?
ii. Method of Sales
Describe available distribution channels and how you plan to use them. Will you be selling directly to
your customers? Will you be using a sales platform like ETSY or Amazon? Will you use a “ground service” like
UPS? Will you use a next-day delivery service? Make sure to include these costs when you calculate your
financials later in the plan.
iii. Advertising and Promotion
Your advertising and promotion campaign is how you communicate information about your product
or service. This section should include a descriiption of all advertising or promotional vehicles you plan to use –
social media, direct mail, newspapers, magazines, radio, community events, etc., sales/promotional materials
(such as brochures and product sheets), package design, trade shows, and the like. Unique product packaging
is also a key promotional tactic.
Section VI. The Financial PlanFinancials are used to document, justify, and convince. This is the section in which you make your case in
words and back up what you say with financial statements and forms that document the viability of your
business and its soundness as an investment. It’s also where you indicate that you have evaluated the risks
associated with your venture. If you are writing a plan for investors, include the following sections:
a. Risks
No business is without risks. Your ability to identify and discuss them demonstrates your skills as a manager and
increases your credibility with potential investors. The following list of problems is by no means complete, but should
give you an idea of some possibilities.
o Your competitors cut their prices
o The industry’s growth rate drops
o Operating costs exceed your projections
o Your sales estimates are not achieved
o Your competitors release a new, better product or service
o You can’t find trained labor
Evaluate your risks honestly. Consider some commonly made small business mistakes as potential risks. Some of
the biggies include: paying employees too much; hiring friends rather than the most qualified candidates to fill
positions; underestimating costs; underestimating the sales cycle; overlooking competition; trying to be all things to
all customers.
b. Expenses and Capital Requirements
The purpose of this section is to determine your start-up costs and to have evidence for investors or bankers that
your new venture is financially viable. You must create three financial forms for the Financials section of your plan:
operating expenses, capital requirements, and cost of goods. Generate a spreadsheet for the year in
which you establish your business to include these three items.
1. Operating Expenses
These are the costs that are necessary to operate the business (does not include cost of goods sold). By
creating a financial form called Operating Expenses, you pull together the expenses incurred in running
your business. Expense categories include: marketing, sales, and overhead. Overhead includes fixed
expenses such as administrative costs, rent, and other expenses that remain constant regardless of how
much business your company does. Overhead also includes variable expenses, such as travel, equipment
leases, and supplies, and labor, which fluctuate based on how much business your company does.
2. Capital Requirements
This form details the amount of money you will need to procure the equipment used to start up and
continue operations of your business. To determine your capital requirements, think about anything in
your business that will require capital. For a diaper delivery service this might be a van, washing
machines and dryers, irons and ironing boards, and supplies. A restaurant may require stoves, tables,
chairs, silverware, pans, etc.
3. Cost of Goods
For a manufacturing company, the cost of goods is the cost incurred in the manufacturing of the product.
For a retail or wholesale business, the cost of goods (sometimes called the cost of sales) is the purchase of
inventory. In other words, how much did it cost you to buy or make the product you are selling? To
generate a Cost of Goods table, you need to know the total number of units you will sell for a year as well as
what other inventory you have on hand, and at what stage of production those units exist. For a
manufacturing company, the cost of goods table will include materials, labor, and overhead related
specifically to product manufacturing.
4. Income Statement
Once the research on all start-up costs, estimated future expenses and sales has been completed you will
create a profit and loss (income) statement showing total revenue, total expenses, and resulting profit loss
for the first year. Total revenue is equal to the estimated number of units of your product/service sold
multiplied by the price you are charging per unit for your product/service.
An Excel template will be provided on Canvas for you to use for the income statement.
Section VII PowerPoint Presentation (This is a separate document to be prepared
for the investor presentation) and is not included in the page count total for the
business plan itself.
Prepare a PowerPoint presentation of your start-up company’s Business Plan. This will be presented in
class to your investors (teacher and classmates). You will be given a rubric for the paper and the
presentation. The presentation will have a 15-minute time limit. It must include your projected revenue, your
projected profit / loss, the total start-up capital you require to launch the business, and the amount of equity
(ownership of the business) that you are prepared to give to investors in exchange for the start-up capital investment
you are requesting.
Source: Adapted from Small Business Development Center (Napa/Solano) 2018 NxLevel;
Sandy Stelter
