Business+Plan

I will put sections up for editing and such, but the plan will be in doc format in order to keep it looking good.

From Webct: Business Plan (20%)

Unit 13 Rationale, Details, and Assessment Criteria

The capstone assignment for SCD 401 is to develop a business plan with your cohort about your proposed cohort venture. You will progress through the various steps of developing a business plan as your work through the course and graded activities. Since this is an ambitious assignment, you will need to coordinate responsibilities with your teammates. The feedback that you receive from your peers and tutor-marker may help refine your final product—the business plan—which is to be submitted via the assignment submission tool in week 13. You can access the assignment submission tool by clicking on the assignment icon on the top right side of your screen. The art of formulating a thorough business plan takes extensive research, but by participating in the process from the outset, you will acquire tangible and practical skills to conceptualize, design, and present your venture on paper. These are professional skills that are transferable to many fields, especially if you continue to work within the SCD field.

Within a business plan, remember that “less” is often “more.” Your plan should be no more than 15 pages in length, excluding references and appendices, single-spaced in 12-point font.

Make sure you include the names of all cohort members on the first page and the project name on each page with the page number. You will, in essence, continually be creating new iterations of your business plan when undertaking the weekly activities.

You should have multiple people read through and edit the final document to eliminate grammar and spelling errors. Finally, you will be assessed on the six sections of your business plan. Your cohort should pay attention to presentation layout, use of references, synthesis, organization of ideas, and financial data. Please refer to the rubric below for additional details on how your plan will be assessed. Section 1—Business Summary (2 marks)

The business summary is the most important section of the business plan. Funding sources will read it first to determine if it is worth their time and effort to read the rest of the plan. It should be no longer than two pages, and ideally contains the following sections:


 * A brief description of your market, the problem your business solves, and how the business will solve the problem.
 * A social enterprise overview, including a brief description; products, services, or business model; history, milestones, and future plans. Existing nonprofits should summarize their performance to date.
 * Required funds and uses, including a summary of the funds required to start (or expand) the business and how they will be used.
 * Summary of financial projections, including the first three years of projections, especially sales, expenses, income, assets, and liabilities.

Section 2—Market Opportunity (3 marks)

This section covers what to sell, who are the customers, what the competition is, how fast to grow, and milestones. It should also include a market analysis, with description of the market, targeted segments, and reasons customers will purchase products from the business. Include:


 * Current size of the market.
 * Recent and potential growth of the market.
 * Geographic distribution of the market.
 * Competitive position.
 * Industry trends.
 * Seasonal factors.
 * Customer profile.
 * Specific target market(s) or segments.

Section 3—Human Resources Plan (3 marks)

Remember that the people hired will make or break the business plan. Who is responsible for developing, marketing, and operating the venture? List the management team—key members of the team, their qualifications, and track records. Include:


 * Key management positions.
 * Outlines of primary job duties and responsibilities for each position.
 * Each person’s education and experience.

Section 4—Marketing Plan (4 marks)

Provide detailed information on the following areas:


 * Pricing—Explain how your pricing strategies were determined, for example, by image, competitive issues, gross margins, discount structures, and so on.
 * Promotion—Include potential advertising plans, public relations strategies, Internet strategies, trade show schedules, product sheets, promotional materials, and so on.
 * Distribution—Distribution strategies are most important for manufacturers, but apply to all types of businesses. Channels of distribution can include direct sales, original equipment manufacturers (OEM), franchisees, licensees, distributors, wholesalers, direct mail, call centres, Internet, and retailers. Multiple channels should be compatible with each other. Explain how the channels were chosen and the benefits they each provide.

Section 5—Implementation Strategy (5 marks)

Include:


 * An organizational chart of the venture (may include additions as the venture grows).
 * Location, size, and cost of facilities.
 * Proximity to distribution channels.
 * Labour requirements and availability.
 * Material/supplier requirements and availability.
 * Equipment requirements and costs.
 * Flow of production and delivery of products.

For new product development, you may include:


 * Prototype or product development timetable.
 * Facility requirements and availability.
 * Cost savings due to economies of scale.

Start-Up

Focus on major milestones in the development or expansion of the venture, including:


 * Dates each milestone will be reached.
 * Key events or changes occurring with each milestone.
 * Additional employees needed with each milestone.
 * Action steps required to reach each milestone.
 * Funding required for each milestone.

Financials

Prepare a cohesive set of projected financial statements, including:


 * Cash flow projections.
 * Profit and loss.
 * Balance sheet.
 * Detailed set of assumptions.
 * Sources and uses of capital.

Financial projections should be for a period of three years, or for a period of at least one year after the venture becomes profitable. It is customary to show monthly cash flow statements until the break-even point or profitability is reached, then quarterly or annually thereafter.

Good financial forecasts demonstrate that the social entrepreneur has thought out the financial implications of the business’s growth plans. Investors are interested in the financials for two reasons: to determine if the venture can deliver good returns, and to determine if the business’s projections are realistic. The financials are the most important part of the business plan after the business summary. Begin collecting financial information early in the planning process and expect lots of revisions as the plan comes into focus. The financials should be completed just before completing the business summary. Remember to be realistic with your numbers; sales revenues should be tied to the size of the market, and operational expenses should be tied to the customer base. All three statements must correlate with each other and with the other sections of the business plan. Note: Small business assistance providers can provide assistance and feedback in preparing the financial and other sections of your plan. Section 6—Contingency Plan and Reflection (3 marks)

This section documents any factors that may hinder success. Appendices

As required. Individual Reflection

After your group has submitted its business plan, each member will be required to reflect on his/her experience and evaluate his/her performance and that of your peers. Did each member do approximately a similar amount of work? What worked and what didn’t? Do you have any recommendations for groups working on a business plan in the future? This should consist of a paragraph, and should be e-mailed individually to the tutor-marker via WebCT e-mail. Feedback will not be returned until all member reflections have been submitted.