Table of Contents
Executive Summary
This section is a summary of the information from the
pages that follow. Prepare it last, after the business plan has been written.
It should not exceed two pages. Headings to use in the Executive Summary:
A. Vision/Mission Statement
B. Company Summary
C. Products/Services
D. Market Assessment
E. Strategic Implementation
F. Expected Outcomes
Vision/Mission Statement and Goals
A. Vision Statement
The vision/mission statements are clear summaries of where
the business is headed. It describes what the business produces, who products
are produced for, and unique business characteristics. It will reflect the
values of the management team and the type of business culture you are trying
to create.
B. Goals and Objectives
What do you want your business to achieve? Be specific in
terms of financial performance, resource commitments (time and money) and risk.
When will various milestones be achieved?
C. Keys to Success
What do you need, or must happen, for you to succeed?
Company Summary
The material in this section is an introduction to the
firm.
A. Company Background
What does your business do?
Who were the founders of the business?
What were the important milestones in the development of
the business?
B. Resources, Facilities and Equipment
With what do you produce your products or services?
What are the
land, equipment, human and financial resources?
Who provides
them?
How are resource
providers rewarded?
C. Marketing Methods
What is your annual sales volume in dollars and units?
Explain how you work with others to improve returns. This
may include a strategic alliance with suppliers or customers that you can
leverage.
Do you use forward contracting, options, or futures? If
so, how?
How much does it cost to produce and deliver your products
and services?
How is contracting used?
D. Management and Organization
Who is currently on the management team?
How have management responsibilities been divided among
the management team?
What are the lines of authority?
Who acts as the president/CEO? spokesperson? Chief
Financial Officer?
Who determines employees’ salaries and conducts
performance reviews?
What is the educational background of the management team
members?
What is the management team’s reputation in the community?
What special skills and abilities does the management team
have?
What additional skills does the management team need?
Who are the key people and personnel that make your business
run?
Who do you go to for advice and support?
Do management and employees have avenues for personal
development?
Sketch a diagram of lines of authority for your operation.
E. Ownership Structure
Who are the primary stakeholders in your business?
Describe the legal form of your company, such as
partnership, proprietorship, or corporation.
Do you need special permits to operate, or a record for
inspections? If you do, please describe them.
F. Social Responsibility
What environmental practices do you follow?
What procedures do you use for handling chemicals?
What noise/dust/timing/odor policies do you have?
What will be the roles of management and employees in
community organizations?
What will be your involvement at the local/state/national
level in commodity organizations?
What training and new employee orientation practices will
you offer to insure proper handling of hazardous materials and safe operation
of equipment?
G. Internal Analysis
What are the strengths and weaknesses of your firm?
What are the relative strengths of each enterprise or
business unit within the firm?
What are the core competencies (things you are doing
better than others) of your firm?
What things can you build on? Think only about the things
that you can control.
Suggested areas to consider:
·
knowledge and work
·
financial position
·
productivity
·
family
·
lifestyle
·
location
·
resources
What enterprise or business unit should be exited?
What enterprise or business unit shows promise?
Products and/or Services
Describe the products and services you plan to sell.
How is your product or service unique?
Are you producing a commodity or a differentiated product?
How does your product or service compare to other products
in
Quality? Price? Location?
What experience do you have with this product/service?
Market Assessment
A. Examining the General Market
How is the market characterized?
Are there clear segments in the market? Describe them.
What important customer need(s) is the market not
currently fulfilling?
What is the growth potential for each segment of the
market?
What opportunities and threats does your firm face?
What does an analysis using the Five Forces model suggest
about your industry? Who is your competition (in light of the Five Forces)?
What trends, relevant to your business, do you see?
What are the drivers of change?
What political and legal issues do you face, such as
zoning, environmental laws, inspections, etc?
B. Customer Analysis
Who will be your customers?
What do you sell to each of the customers?
How does your product/service solve a key customer problem?
How difficult is it to retain a customer?
How much does it cost to support a customer?
C. Industry Analysis
D. Strategic Alternatives
Strategic Implementation
A. Production
How will you produce your product?
What value will you create and capture with your product?
What is your competitive advantage?
What technology will you use, i.e. reduced tillage, GPS
systems, etc.?
What processes will you use to produce products?
What growth options will you use to develop the business
unit?
·
Enterprise
·
Replicate
·
Integrate
·
Network
What is the anticipated timeline?
B. Resource Needs
In order to effectively organize your business you need to
insure the resources are available. Assess those needs here.
a)
Human
What skills are needed?
How will human resources be
acquired?
b)
Financial
What level of financial
resources will be needed?
c)
Physical
What type, quantity and quality
of physical resources will be required?
C. Sourcing/Procurement Strategy
On what do you base a decision to buy products or
services? Price? Quality? Convenience? Extra service? A combination?
By what venue will you find suppliers — local dealer,
Internet, direct from manufacturer, etc.?
D. Marketing Strategy
What is your sales plan?
What advertising and promotion will be used to increase
sales/awareness?
Where will you sell products/services?
Will you use the open market or contracts?
Do you have a preferred market outlet?
Are you a qualified supplier for a specific processor or
buyer?
How will you price the product?
a) Hedging, forward pricing, options
How will you use these to
mitigate your risk?
b)
Contracting
Will you use production or
marketing contracting to reduce risk?
c)
Insurance
How will you use crop, liability
and other insurance?
E. Performance Standards
What performance standards will be used to monitor this
enterprise or business unit?
What are acceptable performance standards?
What yield or output levels could you attain?
What efficiency levels will you reach?
What procedures will be used to monitor performance?
Who is responsible for monitoring performance?
What industry benchmarks will be used to assess
performance?
Financial Plan
A. Financial Projections
How will you fund the business?
What is your desired debt and equity position?
Who will provide capital debt funds?
What role will leasing play in your financial strategy?
Will you use outside investors for equity capital?
How will you manage the financial risks your business
faces?
What operating procedures, such as developing cash flow
budgets or spending limits, will you have to ensure adequate money for debt
repayment?
What are the important assumptions that underlie your
projections? These assumptions may be associated with both external or internal
factors.
What financial aspects of your business (equity, asset
growth, ROA, ROE, etc.) will you monitor?
What procedures will be used for monitoring overall
business performance?
What level of performance will your business shoot for?
These should be targets for next year and in five years. They should be
financial performance standards used to monitor the overall business.
What yield and output levels could you attain? What
efficiency levels will you reach?
B. Contingency Plan
What will you do if you can’t follow through with your
primary plan?
How are you preparing for an emergency in your business?
How will the business function if something happens to one
of the key members of the management team?
