Assignment
The business plan should be talking about opening a food truck selling ( shawarma wrap, falafel wrap, shawarma plate, and falafel plate) the location should be in Vancouver, BC. it has to be really plan with reality numbers of costs....
There are 7 key sections in a standard business plan:
1. Executive Summary
2. Industry Description
3. Business Description
4. Opportunities
5. Production Plan
6. Marketing Plan
7. Financials
1. Executive Summary
While the Executive Summary is the first part of any business and marketing plan a reader sees, you may want to write it last. Leaving it until the end will allow you to better focus, refine and polish your key messages after you've finished the bulk of the work.
The Summary is ideally just one page long - two pages maximum - as it is only intended to provide an overview. While concise, it should also pique the reader's interest enough to read the rest of the plan with an even keener eye. If your Executive Summary has done its job, the reader will continue reading and get the full story of your business idea.
Here are some areas that should be addressed in your Executive Summary:
* Introduce your business - what it is, what it does, how it does it, who manages it, location, its markets and competition.
* Provide a mission statement and vision statement which outline what your goals are and where you want to be in five years.
* For potential investors:
* State if the business is a sole proprietorship, partnership, or corporation;
* Indicate the business opportunity, expected growth rate and potential for good return on investment (details will be in the main document);
* Declare the total financial requirements of the business, funding sources and indicate repayment schedules (again, details in the main document); and
* Give brief outlines of your operational and marketing plans.
It's a good idea to use strong, positive language, ending with a declarative sentence that answers the question, "Why should I invest in this business?
2. Industry Description
This is where your in-depth research and understanding of your industry will be showcased. Within the detailed description of what your industry looks like right now, you should include the following:
* The size of your industry and how many sectors it includes;
* Key information on industry markets, demographics and niche areas;
* Who the major players are in your industry - your competition;
* The suppliers and/or distributors in your industry, if applicable;
* Key industry and economic trends affecting your industry;
* Any social, cultural, environmental or geographical factors that impact your industry;
* What certifications (e.g. ISO), insurance and industry regulations are required;
* An outline of government regulations affecting your industry; and
* The overall growth potential of your industry.
Now you can demonstrate that you've analyzed the risks and know where your business fits in this industry. Points to include here should include:
* What sector of the industry you plan to enter or expand into;
* nbsp;What will distinguish you from any competition in this area, i.e. what's your competitive edge;
* Who your direct and indirect competitors are and their anticipated reactions to your new enterprise; and
* A detailed analysis of any other potential obstacles/risks.
You may also want to identify weak links and/or difficult issues, and include any appropriate contingency plans in your industry description.
3. Business Description
In this section of your business and marketing plan, you describe your business and explain why investors and lenders should be interested in getting involved in your business idea. Here are some suggestions:
* Briefly reiterate your business introduction from the Executive Summary with more details about:
* Your products and/or services;
* Your facilities and assets;
* The history of why and how your business came to be, including any milestones;
* Your success factors (what you do really well) and your niche in the industry;
* Your sales volume (existing and projected); and
* Any innovative products, services, processes and/or ideas being developed.
* Go into detail about your management team, your staff and key advisors, including:
* Owners and managers: who they are and what strengths they bring to the business in terms of experience and expertise;
* Staff: how many, what skill sets and experience they possess;
* The positions and responsibilities of each of the above;
* Plans for training and expanding staff as your business grows;
* Your professional advisors: lawyers, accountants, bankers, consultants, mentors; and
* Your Board of Directors or Advisory Board (if applicable) and what business experience they offer.
4. Opportunities
This is the part of your business and marketing plan where you promote your business concept, your vision for the future and why your enterprise will succeed.
In a clear, concise and positive manner, base your statements on facts and address areas of interest to potential investors, such as:
* Why the market will buy your product and/or service;
* How large the market is and how much you expect to capture; and
* What the future prospects are for your product and/or service.
When addressing these issues, do not hesitate to use as much research and data as possible to describe and promote your product or service, including:
* Why your targeted market wants or needs your product and/or service;
* What innovative features and compelling value your product and/or service offers;
* How your offering is better than that of your competition;
* If you are selling something new, whether it is protected by patent, copyright, or other legal means;
* How your product and/or service will have longevity in the marketplace (will it soon become obsolete); and
* What your plans are for modifying or updating it in the future.
5. Production Plan
Regardless of which industry you are in, it is essential that you demonstrate a thorough grasp of how to manage business operations in a cost-effective manner. You are offering a product / service to a target market and it takes careful planning to deliver quality on time and on budget.
This part of your business and marketing plan should include information about:
* Facilities and assets:
* The location and size of your facility, including floor plans;
* Your facility's capacity for materials and equipment, percentage being used and how long that will last;
* Whether you lease or own the facility and equipment;
* Your proximity to suppliers, if applicable;
* The quality of your machinery and equipment (is it the best available technology and does it meet industry standards);
* Your access to transportation;
* Any future considerations for expansion or moving; and
* Any renovation considerations and associated costs.
* Materials and supplies:
* The number and reliability of your suppliers;
* Whether you have adequate storage facilities for materials;
* Any regulations or permits for supplies / materials; and
* Any risks associated with materials and supplies, i.e. customs regulations, transportation concerns, environmental issues.
* Personnel:
* Your number of employees, including past, present and future projections;
* An organizational chart showing how your staff is organized;
* The skills, training and experience required of your employees, including the cost of training; and
* What compensation and benefits you provide each position, including all salaries, wages, overtime, and/or fringe benefits.
* Operations:
* The industry standards for production, e.g. ISO requirements, environmental, health and safety standards, etc.;
* Any relevant government regulations, e.g. environmental safety, hazardous material handling, insurance etc.; and
* If you are starting a new business, how long it will take to acquire facilities, equipment and personnel before setting up your operations and completing your first production run.
6. Marketing Plan
Your marketing plan is a crucial component of the larger business plan. Here you describe your product and/or service in detail, emphasizing its unique or innovative features. Then you outline your strategic plan for selling your offering within your target market.
Here is a list of elements you should look to cover in this section:
The market
* Describe your potential market and your target customers.
* With all forecasts, remember to include assumptions (interest rates, economic trends, inflation, etc.) that support your estimates.
* Estimate your total potential market (i.e. your number of potential customers and your immediate target market), supporting these estimates with factual data.
* Define your competitive advantage and how your offering satisfies the needs of this market.
* Estimate the growth potential of your immediate market and possible future markets, including national and international markets.
* Include your estimated market share (see sample chart, page 9).
Competition
* Identify your major competitors: who they are, where they are located and their market share.
* Identify any indirect competition.
* Compare your product and/or service with that of your major competitors, e.g. brand name, quality, image, price, etc.
* Compare your company to major competitors, e.g. reputation, size, distribution channels, locations, etc.
* Assess the degree of difficulty for your competition to enter your target market.
* Describe what you have learned from watching your competition.
* Determine whether competitors' sales are increasing, decreasing or remaining steady, and why.
Technology
* Describe how technology impacts your product and/or service.
* Consider how new and emerging technologies will impact your product and/or service, and when investment in new technology may be required.
* Describe how your company can adapt quickly to change.
Socio-political environment
* Describe changing attitudes and trends.
* Assess how flexible and responsive your firm can be.
* Consider laws and regulations that may affect your business, and what the financial impact might be.
Other
* Include other situational factors that will affect your marketing plan, such as regulatory changes, access to venture capital, trade barriers, world economic issues.
You should also:
* Define problems and opportunities:
* Identify problems or potential problems, as well as opportunities, that affect your business idea, and state what you will do about them.
* Define objectives:
* Outline your business objectives in precise, measurable terms. Make sure you can quantify your targets.
* Define strategies:
* Outline how you will reach your objectives - steps you will take in planning, production and marketing to meet your targets.
* Ensure that you have taken into account the previously-mentioned problems and opportunities, and have considered potential reactions of your competitors.
Your action plan
Here is where you address the four "P"s of marketing: product, price, promotion and placement (distribution). Be prepared to explain:
* Your product or services - describe the quality, branding, packaging, modification, servicing of your product and the location of your service;
* Your prices - describe how you will price your product or service so that it will be competitive, yet profitable;
* Your promotion plans - describe how, where, when you will advertise and promote your offerings; and
* Your placement/distribution methods - describe where people will buy your product or have access to your service. Outline your selling methods and sales force: personal selling, mail-order, online. Include the number of salespersons and training required, etc.
Sales projections for the next five years (including optimistic, pessimistic and realistic projections, as well as assumptions) should also be included.