COMM 320 Report and Business Plan Project

Subsequently, the group will write a complete business plan (an outline is provided on the following two pages) describing the start-up or expansion of the business, covering a period of the next three years. The business plan will be based on the assessment of the group for the new venture or the potential growth / expansion / diversification of the existing business. As a guideline the plan should fulfill the following criteria: There is a market driven need for new products / services. There is a potential for profitability the market size should be sufficient. The entrepreneur should have the resources (skills, money, and experience) to make this a reality (even if it is not necessarily an idea they want). It should fit within the scope of the school term (dont select something that will take 9 months to research). Also, remember that it is a business plan that the group will be writing, not just a concept / idea paper. The difference is that the business plan requires research, detail, and completion, to the point where the start-up / expansion is ready for implementation; whereas, a concept paper could just be an idea. The group needs to keep in mind the roughly 10 week timeframe. Business Plan Outline: The business plan should be about 20 pages of written text; there may also be small tables, illustrations, charts, etc. Any large graphics should be placed in the appendices. The pro-forma Financial Statements should under a separate tab (please separate your sections with tabs). All other supporting information, research documentation, any surveys, illustrations or graphics, should be in the appendices (ideally separated with tabs easier to consult while reading the plan). The business plan for this class is based on a generic outline; it contains the same basic content as the outline in the Course Pack (page 242) and what was discussed when we covered Section 5 (see class slides) in a slightly modified order and structure: 1. Cover Letter: This personalizes the plan; in this case the letter is addressed to me, indicating that the business plan is to fulfill academic requirements, and a request for feedback about the business. 2. Title Page: This should be consistent with the look of the business, including the name and logo, and an appearance that fits the image of the business. 3. Table of Contents 4. Executive Summary: This presents the highlights of the business plan and must grab the attention of the reader. 5. 6. Concept / Goals and Objectives: Briefly, the original idea, the product / service, and goals and objectives; The growth / expansion / diversification concept; The management team (responsibilities, skills, background). Industry / Market Analysis: Industry overview, general characteristics, market gaps, trends, product life cycle; Industry key success factors; Forces, competitive, technological, government; Research on your target market; Market potential, competition;

Summary - the window of opportunity.

7. Marketing Plan: Marketing Strategy; The intended niche (market segment); Your U.S.P. (unique selling point), any competitive advantage; Marketing Mix (4Ps); Revenue projections in brief. 8. Operations Plan (mostly narrative link to appendices): Human Resources (key people); The organization structure, and legal status; Product / Service Flow charts; Production capacity; Facilities (Layout if applicable); Key supplier relationships; Scheduling; Implementation time-line. 9. The Financial Plan: Start up funds required, and source; The deal structure, if applicable (changes in ownership, etc.); Major assumptions, Revenue Projections repeated with more detail; Risk Management, contingency plans; Discussion of Cash Flow; Discussion of Income Statements; Discussion of Balance Sheet; Discussion of Sensitivity Analysis; Discussion of Break-Even Analysis; Discussion of Ratios. 10. Financial Statements (pro-forma), under separate tab: Historical Statements (if available, most recent Balance Sheet / Income Statement); Pro-Forma statements Projected into the future: Relevant Notes section explaining key points; Monthly Cash Flow (Year 1, 2, 3) on 3 sheets; Income Statements (Year 1, 2, 3) on 1 sheet; Balance Sheets (Year 1, 2, 3) on 1 sheet (if possible); Sensitivity Analysis Year 1 Income Statement (Optimistic, Realistic, Pessimistic) on 1 sheet; Break-Even Analysis (Based on Realistic scenario); Appropriate Ratios. 11. Appendices: Research information, actual pages from articles, etc. Primary Research (surveys, etc.) All other research (Not sure include it!) Charts, graphs, etc. Resumes; Facility Layout; Flow Charts; Organization Chart; Patents, copyrights, illustrations of prototypes; Anything else, if you are not sure include it! 2