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How to Write a Business Plan

Book Description

How to Write a Business Plan presents the latest thinking on effective business planning, while putting all the information and tools students need right at their fingertips. From diagnosing and measuring customer satisfaction to finding innovative ways to raise capital, the fifth edition of this best-selling course explains how to organize and implement the planning process from beginning to end and position a company for success. Students will learn how to: • Evaluate a business’s capabilities, strengths, and weaknesses • Pinpoint the crucial elements of the competitive environment, including market, economic, and technological factors • Establish realistic goals, objectives, and strategies in areas including marketing, organization and management, production/services, R&D, finance, and information technology • Develop both operating and financial plans • Identify and integrate customer requirements into the business plan • Write the actual planning document and use it to steer a company to greater productivity and profits • Obtain the capital needed to grow a business Completely revised and updated, the course now includes sections on developing Information Technology goals and strategies, a new chapter preparing an IT Plan, and a glossary of terms. It also covers the role of the balanced scorecard in developing a business plan and looks at new ways to raise capital such as crowdfunding and search funds. Sample outlines, exercises, and review questions reinforce key concepts and allow students to strengthen their skills. Startups and established businesses alike all need a plan—this course makes creating one easy.

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Contents
  5. About This Course
  6. How to Take This Course
  7. Pre-Test
  8. 1. The Business Plan
    1. Definition of a Business Plan
      1. The Business Plan Is the Final Step of Planning
      2. The Business Plan and the Development Process
    2. Contents of a Business Plan Document
      1. Executive Summary
      2. Sales and Revenue Plan
      3. Production Plan
      4. Research and Development Plan
      5. Organization and Management Plan
      6. Financial Plan
      7. Information Technology Plan
      8. Appendices
    3. Contingency Plans
    4. Recap
    5. Review Questions
  9. 2. Introduction to Business Planning
    1. What Is Business Planning?
    2. Objectives and Uses of a Business Plan
      1. Internal Uses of a Business Plan
      2. External Uses of a Business Plan
    3. What to Include in a Business Plan
      1. Market Strategy
      2. Production or Service Strategy
      3. Research and Development Strategy
      4. Organization and Management Strategy
      5. Financial Strategy
      6. Information Technology Strategy
    4. How to Prepare a Business Plan
      1. Step 1: Organizing the Planning Process
      2. Step 2: Diagnosing the Situation
      3. Step 3: Setting Goals
      4. Step 4: Developing Operating Plans
      5. Step 5: Developing a Financial Plan
      6. Step 6: Writing the Business Plan Document
    5. Recap
    6. Review Questions
  10. 3. Diagnosing the Internal Capabilities of a Company
    1. The Importance of Understanding a Company’s Operations Structure of an Internal Diagnosis
      1. Evaluating Market Strategy
      2. Evaluating Production or Service Strategy
      3. Evaluating Research and Development Strategy
      4. Evaluating Organization and Management Strategy
      5. Evaluating Financial Strategy
      6. Evaluating Information Technology Strategy
      7. The Balanced Scorecard and the Business Plan
    2. How to Use the Results of an Internal Diagnosis
    3. Recap
    4. Review Questions
  11. 4. Diagnosing and Measuring Customer Satisfaction
    1. Structure of the Company’s Operating Environment Focus on the Customer
    2. What Customers Value
      1. Customer Value Model for the Family Doctor
    3. Identifying the Company’s Customers
    4. Customer Research Versus Customer Satisfaction Measurement
      1. Four Key Questions for Customer Research
      2. Customer Versus Market Segmentation
    5. Measuring Customer Satisfaction
    6. Ten Key Steps in Customer Satisfaction Measurement
    7. Recap
    8. Review Questions
  12. 5. Diagnosing the External Environment
    1. Components of an External Diagnosis
      1. Analysis of Market Developments
      2. Analysis of Technological Developments
      3. Analysis of Economic Developments
      4. Analysis of Major Societal Forces and Trends
      5. Legislative and Regulatory Actions
    2. How to Use the Results of an External Diagnosis
    3. Recap
    4. Review Questions
  13. 6. Setting Goals
    1. Definition of a Mission
    2. The Purpose of Goal Setting
    3. The Nature of Goals, Objectives, and Strategies
    4. How Goals Are Established
    5. Where to Establish Goals and Strategies
      1. Setting Market Goals and Strategies
      2. Setting Production or Service Goals and Strategies
      3. Setting Research and Development Goals and Strategies
      4. Setting Organization and Management Goals and Strategies
      5. Setting Financial Goals and Strategies
      6. Setting Information Technology Goals and Strategies
    6. How Goals, Objectives, and Strategies Should Be Used
    7. Recap
    8. Review Questions
  14. 7. Developing a Sales and Revenue Plan
    1. Developing Quarterly Sales and Revenue Objectives
    2. Developing Estimates of Marketing and Sales Expenses
    3. Pulling Revenue and Expense Objectives Together
    4. Linking Sales and Revenue Objectives to the Research and Development Plan
    5. Finalizing the Sales and Revenue Plan
    6. Recap
    7. Review Questions
  15. 8. Developing a Production Plan
    1. Production Scheduling
    2. Raw Materials Planning
    3. Direct Labor Planning
    4. Production Overhead Planning
    5. Computing the Cost of Goods Sold
    6. Finalizing the Production Plan
    7. Recap
    8. Review Questions
  16. 9. Developing an Organization and Management Plan
    1. Developing an Appropriate Management Structure
      1. Factors Involved in the Structure
      2. Form of the Structure
      3. Implementing the Structure
    2. Developing Effective Management and Information Systems
    3. Developing an Effective Workforce
    4. Estimating Management and Administrative Expenses
    5. Recap
    6. Review Questions
  17. 10. Developing a Financial Plan
    1. Linking the Financial Plan to Financial Goals and Strategies
    2. Preparing an Income Statement
    3. Preparing a Balance Sheet
      1. Planning Working Capital
      2. Planning Long-Term Assets
      3. Planning a Financing Structure
      4. Finalizing a Balance Sheet
    4. Preparing a Statement of Cash Flows
    5. Finalizing a Financial Plan
    6. Recap
    7. Review Questions
  18. 11. Developing an Information Technology Plan
    1. IT Situation Analysis
    2. Business and IT Alignment
      1. Goals and IT Initiatives
      2. Timelines and IT Initiatives
    3. Tracking Emerging Technologies
    4. Goal Setting and IT Initiatives
    5. The IT Plan and Organizational Learning
    6. Information Technology Budget
    7. Information Technology Performance Measures
    8. Recap
    9. Review Questions
  19. 12. Preparing a Business Plan to Raise Capital
    1. Alternatives for Raising Capital
    2. Sources of Equity
      1. Individuals
        1. Venture Capitalists
        2. Joint Ventures
        3. Search Funds
        4. Crowdfunding
      2. Public Securities Markets
    3. Sources of Debt Financing
      1. Commercial Banks
      2. Asset-Based Lenders
      3. Leasing Companies
      4. Government-Assisted Programs
      5. Industrial Revenue Bonds
    4. What Investors and Lenders Look for in a Business Plan
      1. People Involved
      2. Viability of the Concept
      3. Marketing Skills and Experience
      4. History of Success
      5. Personal Commitment of Resources
      6. Reasonableness of Financial Projections
      7. The Bankers’ Perspective
    5. Factors to Consider in Deciding How to Finance
      1. Age of the Business
      2. Personal Goals
      3. Timing
    6. How to Present the Plan
      1. Packaging the Written Plan
      2. Submitting the Plan
      3. Closing the Transaction
    7. Recap
    8. Review Questions
  20. Bibliography
  21. Online Resources
  22. Glossary
  23. Post-Test
  24. Index