COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF CHEMICAL ENGINEERING

PRODUCTION AND PROJECT MANAGMENT

Worked by Network one

Name IDNO

1.

2.

3.

4.

5.

6.

7.

ADVISOR:
SUBMITED DATE:
Why Write a Business Plan?

A Business Plan helps we evaluate the feasibility of a new business idea in an objective, critical,
and unemotional way.
Marketing Is there a market? How much can we sell?
Management Does the management team have the skill?
Financial Can the business make a profit?
It provides an operating plan to assist we in running the business and improves our probability of
success.
Identify opportunities and avoid mistakes
Develop production, administrative, and marketing plans
Create budgets and projections to show financial outcomes
It communicates our idea to others, serves as a selling tool, and provides the basis for our
financing proposal.
Determine the amount and type of financing needed
Forecast profitability and investor return on investment
Forecast cash flow, show liquidity and ability to repay debt
Steps to Writing a Basic Business Plan

The followings are the basic steps to writing a good business plan that we can present to others
that will give them the basic concept about our business idea, why it is a great idea, why we can
do it, how we will sell it, and how we plan to finance it.
This will only be a basic plan, but it will give us the ability to present our idea in a professional
manner. After we establish interest from a bank or investor, they will tell us what they need from
us to close the deal.

The Business Plan Outline

The first thing to do is create an outline for our plan. The outline should cover the main topics or
points that will be important to the people that will read our plan. Some basic headings should
be; (complete Business plan outline listed below)
Executive Summary
Business Description and Vision
Definition of the Market
Description of the Products and Services
Organization and Management
Marketing and Sales Strategy
Financial Management
Conclusion
Below we have listed the headings and the basic things that will need to be written about under
each heading:

Executive Summary
This section should:
Only be about 2 pages in length
The last section to be written
A good overview of our Company, who we are, our products and services, the target
market and any other general information.

Objectives
To attract regular customers.
To offer our customers excellent, at a reasonable price, and provide outstanding customer
experience.
To generate positive cash flow from operations.

After reading this section the reader should:

Want to learn more about our businesscontinue reading the plan
Have a good understanding about our business and how we intend to operate.
Business Description and Vision
This section should include:
The overall mission of the business. (Mission Statement)
Our company vision. How we see the company growing.
The Business goals and objectives. What we plan to accomplish.
How the business got started
List of key people that will help us manage our company
After reading this section the reader should:
Have a solid understanding about the mission of the business.
our view about how the company will grow
The goals and objectives of the company
The information about the people that will help us be successful
Keys to Success
Our keys to success are:
Excellent product and service that will build and maintain customer loyalty.
A business location that will assure high company visibility and a high flow of
customers.
Proven management ability to successfully run a similar business.
Our commitment to continuous improvement and total quality services.

Basic Questions:
1, what general type of business is this?
2, what is the status of the business? Start-up , expansion or take-over?
3, what is the business form? sole proprietorship, partnership, corporation or Limited Liability
Company?
4, what are the products?
5, who are (will be) our customers?

Vision / Mission Statement

What is our vision? What is our product or service idea? Keep it simple. we might come
back to this later to add more content.
Business Profile
What type of legal business structure do we plan on using? A Sole-proprietorship, an
LLC or a corporation. Is it going to be a retail business where people come to us to buy
our product or service (i.e. store, restaurant, cleaners, etc.) or will you take your product
or service to the customer? (Lawn care, handyman, house painter, etc.).
Business Objectives
What will be the objective of our business? For example if we are starting a restaurant,
what will be the main reason people will come to us. The best wings, great food at a
good price, place where we can bring our family.

Definition of the Market

This section should:
Describe the market or industry our business is in and the overall future outlook.
Describe the need for our products and services in this market
Describe the target market that we will sell our products and services to.
Give a good profile of our target customer. (i.e. age, sex, income, etc.)
Describe what share of the market we have or intend to get.
After reading this section the reader should know:
Basic information about the market or industry our business will operate in
Why our products and services are needed and utilized
What is the target market that you will sell our products and services and what the idea
Customer looks like.
What part of the market we are going for.

Description of Products and Services

This section should:
Give a detail description of our top products and services, with summary information on
any of them Parham was in a car is lower the Lea in SAP not yet Marc and Alyson the
letter of the ark the additional products and services.
Describe how our products with compete with other products of the same type
We may add a product photo or other graphic.
After reviewing this section the reader should know:
Detailed information on our top products and an understanding of any other products
How much are our products and how will we deliver them.
How our products compete with other products

Economics
Facts about our industry:
What is the total size of our market?
What percent share of the market will we have? (This is important only if we think we
will be a major factor in the market.)
Current demand in target market.
Trends in target marketgrowth trends, trends in consumer preferences, and trends in
product development.
Growth potential and opportunity for a business of our size.
 What barriers to entry do we face in entering this market with our new company?
Some typical barriers are:
High capital costs
High production costs
High marketing costs
Consumer acceptance and brand recognition
Training and skills
Unique technology and patents
Unions
Shipping costs
Tariff barriers and quotas
And of course, how will we overcome the barriers?
How could the following affect our company?
Change in technology
Change in government regulations
Change in the economy
Change in your industry
Organization and Management
This section should:
Provide good description of how our company is organized to run successfully. (I.e.
organizational chart, workflow diagrams, etc.)
Describe the legal structure of our business (proprietorship, partnership, corporation,
etc.).
List any necessary or special licenses and/or permits our business operates with as well as
any business certifications (i.e. MBE, 8(a), Women Owned, etc.)
Provide a brief bio description of key managers within the company.
After reviewing this section the reader should know:
How our company is organized to run successfully.
The legal form of ownership for our business.
Who are the key people we will rely on to run the business
The general flow of operations within the company
Organizational Structure
What type of legal business structure do we plan on using? A Sole-proprietorship, an
LLC or a corporation.
Is it going to be a retail business where people come to we to buy our product or service
(i.e. store, restaurant, cleaners, etc.) or will we take our product or service to the
customer? (Lawn care, handyman, house painter, etc.).

Management Team
Why can we be successful in this particular business?
What is our or our key persons background and experience in this area of business?
Using the home painting business as an example, maybe we have been working painting
homes for other companies for 15 years and you learned from our grandfather who has
been doing it all of his life.
Who will do the bookkeeping, ordering of supplies, and invoicing.
This might be we, but we will need to show that we are aware that this is important and
someone will be doing it.
Marketing and Sales Strategy
This section should:
Describe our market, our customers, and why they want to buy our products and services.
Describe how we will sell our products and deliver to our customer.
Explain our sales strategy, specific to pricing, promotion, products and place .
After reviewing this section the reader should know:
What our market is and how we plan to reach it.
How our company will use pricing, promotion, product difference to sell our products
and services competitively.
Marketing Plan
 How will we market our business?
The internet, local newspapers, flyers, coupons, etc.
How will we get the message out?
We might attend neighborhood meetings to announce our company.
If we are a restaurant we might even supply the food for a neighborhood meeting.
The Competition
We will need to do research for similar companies in our area that area.
This will also help we create differences in how we will sell our product.
A simple internet search will give us loads of information. For example, we want to start
a take -out wings restaurant.
Use Google or another search engine.
There should be a number of returns on this search term. If not change it until we get
what you want.
The Customer
Using Google again just enter the zip code for the area you want to service and you will
find a report in the return hits that contains the demographic information for this area.
There will be different reports. Find the one that has the information we need to support
our idea.
Using the Take-out Wings restaurant, we might find that there is a college, sports
stadium, or park in the area. we might also find that there are a lot of young people that
live in the area and we know who eats a lot of wings.
Financial Management
This section should include:
For a New Business
Estimate of start-up costs.
Projected balance sheet (1 year for ward).
Projected income statement (1 year for ward).
Projected cash flow statement (12 months).
For an Existing Business
Balance sheets (last 3 years).
Income statements (last 3 year).
Cash flow statement (12 months) .
If Applying for a Loan (in addition to the above)
Current personal financial statement on each principal.
Federal tax return for prior year.
After reviewing this section the reader should:
Have a good understanding about the financial capacity of our company and what our
cash flow projections are for growth.
Financial Plan
What will it cost to start and run our business for at least the next two years?
There will be fixed cost or cost that will pretty much stay the same (i.e. rent, utilities,
equipment, insurance, etc.).
There also will be variable cost that will change as our business changes.
For example if we are starting a home painting business we might create a cost sheet for
how much it will cost to paint an average 3 bedroom house. (I.e. Paint, labor, supplies).
Review the Plan
Use spell check and other tools to help correct the basic errors in our plan. Remember they will
not catch everything. We must read it our self and have other read it as well. Dont get all
sensitive if they come back with changes and corrections. We would rather have them find them
then our potential investor or bank.

Finalize the Plan

After we have received all the comments and changes start the final draft of our plan. We dont
have to make all the changes that people recommended only the ones that work for we.
Provided they are not spelling or misuse of word errors.

Create the Cover Letter

We will need to create a cover letter to send along with the plan when we have someone look at
it for possible investment. Introduce our self and explain about the plan and why we are
presenting it. Remember thank them for reviewing it and give them a way to contact we if you
have any questions.
Conclusion
This is where we summarize our idea again and stress our confidence in our ability to be
successful.
We should also thank our reader and give them a way to contact we if they have any more
questions.