Methods and Techniques for Writing a Business Plan

Overview of the Business Plan

Upon the completion of this assessment, you should be able to apply the methods and techniques that have been learnt, to review, consolidate, extend, and apply your knowledge and understanding, to initiate and carry out a Business Plan (LO 2)

• Apply entrepreneurship knowledge to the development of new products and services with the aim of integrating some form technology
• Develop a robust business model that covers key areas such as management plan, operational plan, and marketing plan
• Apply macro/micro economic tools such as porters five forces to determine industry attractiveness
• Critically discuss various financing options available to entrepreneurs.

The guidance offered below is linked to the six common assessment criteria overleaf.

1. Business Description / Market Opportunity

The business description is a short overview of the entire business plan; it provides a summary of the new venture’s distinctive nature. This section should be written last to ensure it covers key areas of the business plan. The business description section provides a general description of the company. It should include your mission statement, description of product or service with focus on the innovative element that makes it relevant in a post-Covid 19 world, which may be in its design or delivery, need for the product and milestones achieved thus far if any. The ownership structure should also be laid out.

2. Industry Analysis

A general description of the business’s industry in terms of size, growth rate, and sales projections should be provided. More specific analysis must be conducted using Porters five forces model to understand dynamics of the industry you would be going into; this analysis would help you decide whether to enter a particular industry and whether an attractive position can be carved out in that industry.

3. Operations and Management Team Plan

The operations plan section of the business plan outlines how your business will be run and how your product or service will be produced. A useful way to illustrate it is by providing detail on your business model which focuses on the revenue stream.

4. Marketing Plan

The marketing plan focuses on how the business will market and sell its product or service. It deals with the nuts and bolts of marketing in terms of price, promotion, distribution, and sales. A company’s marketing plan can be described by articulating its marketing strategy, positioning, and points of differentiation, and then considering how these overall aspects of  the plan will be supported by product, price, promotional mix, and distribution strategy. The Four P’s must be used to describe your marketing strategy.

5. Financial Plan

The final section of a business plan presents a firm’s start-up costs. The first thing to include is a source and uses of funds statement, which is a document that lays out specifically how much money a firm need (if the intention of the business plan is to raise money), where the money will come from, and what the money will be used for.

6. Market Research

Extensive market research on the specific industry and macro environment must be conducted. Use of relevant statistics and credible sources in identifying trends which stimulate opportunity identification is encouraged.