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Sample essay topic, essay writing: Sample Business Plan - 2069 words

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XYZ COMPANY LIMITEDBUSINESS PLANStrictly Private & ConfidentialXYZ Company LimitedThe Old Manor HouseSomewhere Down SouthAvalon AV1 234BTel: 01234 567 890 Fax: 01234 567 891E-mail: Executive SummaryThe executive summary is the most important part of the business plan. Many people will only read this. The summary in itself will not secure an investor, however, it can loose them. Quality - the quality of the summary must therefore be outstanding and you should pay particular attention to it. Obtain critical feedback from others on your drafts.

Stand-alone - it is also used as a stand-alone document when introducing the project to others so it must be able to capture interest and entice the reader to take the next step and request more information - and secure a meeting.Style - cogent and terse. It should be direct and organized as a series of bulleted paragraphs, each deals with one key area. No waffle.Length - ideally one page, and certainly not more than two pages. Content - it needs to: Introduce the project in terms of what area it is concerned with, what it is trying to do, and list the key individuals and advisors involved  Describe the stage the project reached particularly in terms of the 'readiness for market' of its products, or product concepts, and outline any intellectual property, such as patents, that may support the products  Highlight the main market characteristics, including size and growth, and specify the market opportunity that you are addressing  State the central competitive advantages of your products and/or processes, how distinct they are from the competition and in what way, and how these are important to customers  Summarize the objectives of the company in the short and long term, and quantify these with specific numbers. Outline the key strategies you will use to achieve them  Include any 'evidence of success' - this may be trade reviews, analyst comments, sales or partnership agreements, working prototypes, market testing, etc. which help to make the project more tangible to the reader and raises confidence in the project  Highlight any other key issues that should be noted  State your finance requirements and what stake in the company is available for this (see Financial Structure), and the planned exit strategy for the investor - i.e. how the investor will realize their return from the project

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For more on this click Financing Structure.Example Text: XYZ Company Limited is an Expert Design Consultancy focusing on Packaging Design Solutions for "Fast Moving Consumer Goods" (FMCG) in the Personal Care industry. It was founded in 2001 by Augustus James, a Director of the UK's leading Consumer Design Agency, Good Designs plc, who directed packaging design projects totalling over $100 million for Nike, Gillette, Channel and other global brands. Also on the executive board are Jill Mann, a Director of the Advertising Agency, Nero & Antonia, and by Julius Marcus, a Production Manager at the UK's largest packaging company, Boxes-R-Us. Table of ContentsExecutive Summary 2Table of Contents 3Introduction to the Business and its Management 4Products and Services 5The Market 7Competitive Business Strategy 8Marketing Plan 10Sales and Distribution 11Production Strategy and Structures 12Financing Requirements and Deal Structure 13Key Financial Data and Financial Projections 15Appendix 16Important Information: This document does not constitute a public offer or prospectus or invitation to the public. Only those who fall under the FSA definition of "High Net Worth Individuals", or "Sophisticated Investors" should review the plan. It will not be circulated to more than 50 such individuals. Investments in unquoted securities are highly speculative, carrying high risk as well as the potential for high rewards.

There is no ready market for the realization of that investment, or its valuation, or the risks to which an investment is exposed. The figures stated are purely illustrative and do not constitute a forecast. Before investing in a project readers are strongly advised to verify all material facts and information for themselves and seek advice from a person authorized under the Financial Services Act.Introduction to the Business and its ManagementIntroduce the business and what it does / will do. Describe concisely how the project came about and progressed to the present situation. Explain who is involved, what are there positions, what relevant experience and qualifications do they have. Include a one-paragraph biography on each (full CV in the Appendix).State what stage the business is at now.

Highlight briefly the most salient features of the company's products and services - their competitive advantage.Explain any "evidence of success" you may have - from customer orders, market testing, working prototypes, expressions of interest, industry recognition, etc. Outline any other factors that have increased the likelihood of success.Do you have any Non-Executive Directors or Mentors who add value to the Board, and will give potential investors more confidence through their expertise, be they sector experts or generally experienced business people? List them with a brief biography highlighting achievements and relevant experience. Outline any skill gaps you still need to fill, and how you intend to do so. If you do not recognize the skills gaps the investors will do and may feel your plans are unrealistic. List your business advisors, if necessary with a brief description highlighting relevance. Do you have any major alliances with other organizations, if so how do they add value / contribute to the business in outline terms.

What is the basic nature of the relationship?What is your organizational structure? (Include an organization chart if appropriate).Outline where you want to go from here - what you want to achieve. What are the company's main aims and objectives? Quantify these. What are the next key stages and milestones?Organisational Structure Chart (Double-Click to Edit)Products and Services Describe your products / services in clear and simple terms  What consumer need is being satisfied by these products that is not being satisfied at present? Explain any performance advantages / value advantages over rival products List any other unique features Intellectual property - are any patents or trademarks involved or required? Price and pricing strategy - what price will you products sell at and what is the pricing strategy behind this decision. How does this compare with rivals? State the costs of production and distribution, and so the resulting margins on sale Describe any wholesaler or retailer margins involved and how this compares with rivals Communicate any further planned products / development and when you expect them to reach market / bear fruit.Include any background information relevant to the products or services.For more detailed help from the innovateur website, click this link Products & Services Example text, Medical Instruments:The MelanoScannerWe have developed a medical instrument device for the detection of melanoma (skin cancers): the MelanoScanner, which has just been awarded the Queen's prize for innovation.The MelanoScanner detects potential melanoma by measuring tiny temperature differences, caused by increased blood flow, between normal skin and a malignant melanoma.It is a small, hand held portable device, between 15 to 25 centimetres wide that looks much like a hand held barcode reader as found connects, much like a mouse, to a computer with the company's simple diagnostic software. Any computer can be used and the programme is small in size.

The Need being ServedMelanoma is the most common form of cancer in the UK and the death toll from the disease is rapidly rising even though it can be successfully and easily treated if detected early.The MelanoScanner allows for the first time for practical screening to be undertaken in a GP's surgery to a high degree of accuracy (over 95%) without the need to refer the patient to an expert dermatological surgeon for screening - which is not practical as they are scarce.Pricing StrategyAs there are no direct product comparisons we relied on same-type products to determine our pricing strategy and policy.GP's have a number of instruments that they use and have been adopted almost universally by every GP in the country and around the western world. These instruments typically range between lb5,000 and lb12,000 per unit and this has been shown to be an affordable price within their specific budget for instruments.In addition to this reference, we carried out a basic telephone survey of 300 GPs to ask them directly if they would buy such a product if available, and what would they be willing to pay. 98% of our sample said they would buy it and had the resources currently to pay for it - they were willing to pay between lb3,000 and lb5,000 for it.The price has therefore been set at lb4,500 (excluding VAT) to ensure we do not forsake profit, and to ensure that demand is a little slower so we can meet it. The price can easily be reduced if we needed but not readily increased. Production Costs and Gross MarginsBecause the investment in our product is primarily in the technology, the physical cost of production is actually very low. Cost % of Sales PriceCircuit board 35.00 Plastic Mouldings 5.00 CD with software 2.00 Packaging Materials 2.50 Assembly & Packing 1.00 Total Unit Production Cost 45.50 1%Selling Price (ex VAT) 4,500.00 100%Gross Margin per Unit 4,454.50 99%Reseller Commission 45.00 1%Margin after Sales & Dist.

4,409.50 98%The reseller will control Warehousing and distribution, and will meet these costs from their fixed price per unit commission.Intellectual Property RightsOur MelanoScanner has been patented internationally and the patent has been approved. The effective filling date was July 2002.The MelanoScanner trademark has been filed and granted as a community trademark in Europe, the USA and Australia.Research and development will continue as a major part of our business and we have budgeted accordingly in our financial plans.The MarketThis section should describe the market you will be operating in - generally and specifically in terms of which sectors you will be targeting, what is the size of each sector, and what are the main current products being offered to that sector.  Market Overview. Market size and segmentation. What is the size of the market and how can this be segmented or grouped into sectors? Which segments, or sectors, will you specifically be targeting? Market growth trends. Other key market characteristics. Main competitors / products currently targeting these segments.This section overlaps with the next section on Competitive Business Strategy and you may choose to amalgamate them.Competitive Business StrategyCompetitive Market StrategyHow is the company going to compete in the market? Will it compete on price, service, quality, convenience, new features and benefits, by targeting a very specific area of the market (niche), etc? Is this difference really important to the target customer / buyer?To demonstrate that you have analysed your competitive environment, you should show a summary analysis using the Five Forces model and then a SWOT matrix:1. Analysis of Industry Structure (Porter's Five Forces) Threat of New Entrants to the Market - what do we believe is the threat of new players entering the market, are there any barriers to entry or exit such as large investment etc. Threat of Substitute Products - the threat of different products filling the same need Power of Buyers - are the buyers of products very powerful and able to depress prices Power of suppliers - what is the bargaining power of the suppliers to the business  Rivalry Amongst Existing Players - how intense is this and how strong are they - for example in some markets rivals are willing to sacrifice profitability to gain market share. How profitable are the companies in the market - do they make good margins, good turnover, etc?2.

SWOT Analysis - This is a summary of your company's internal strengths and weaknesses, and the external opportunities and threats it faces in the market and its competitive environment.Include any background information relevant to the products or services.For more detailed help from the innovateur website, click this link Products & Services Example:This analysis of our competitive environment sets our competitive strategy in context.Analysis of Industry Structure - Industry Forces (External)Power of Suppliers: The power of our suppliers is weak as there are large numbers of suppliers and intense competition amongst themThreat of new entrants: The barriers to entry into this sector are high and we have overcome them through our patented technologies. Because of the modest profits characteristic in the industry using old technologies, the threat of new entrants is low. Power of buyers: The power of buyers in this industry is very high. A relatively small number of customers control the market. However, because of our superior technology, we will be able to mitigate against this power.Threat of substitute products: ...

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