In: Business and Management

Submitted By JUDI14
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TABLE 7.4 An annotated table of contents of a formal business plan.
Writing a complete business plan forces the entrepreneurs to crystallize key business issues in their minds. There are many ways to structure a business plan, with various references, structures, and templates available. The business plan process focuses on the venture’s key success factors by posing questions that must be addressed for an idea to become a true opportunity. See chapters 2 and 19 for a discussion of the business story and concept. Additional references to other chapters are shown in this table. Executive Summary The executive summary is the most important part of the business plan. Many investors make their decision to proceed with further discussions (e.g., due diligence) based on this single section. The executive summary should encapsulate the key positioning and reasoning found in the rest of the business plan. Both the vision and mission statements should assist in succinctly communicating a compelling opportunity. • • • • • Why is this a big problem and why are customers willing to pay for solutions? How does the venture plan on solving the customer problem or need? Why is this venture uniquely positioned to do this? How attractive are the economics? Why is this an exciting growth opportunity? Who is the team, and what key partnerships are in place?

I. Opportunity and Market Analysis Investors like funding big problems representing large opportunities. Start strong by demonstrating a solid understanding of the customer and why this problem or pain is important to them. Performing customer segmentation will convince readers that the venture can grow to the size of the addressable market. • • • • What is the problem or need being solved by the venture? Who is the customer or customer segment(s)? How large is the total addressable market, and how much is it growing? How is the…...

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