1000 Business Lessons Every Businessman Must Know

Chapter 8 Entrepreneurship Plan: Provide Instructions for Your Start (2)
[-]. The current capital increase needs of the company to achieve the goal: reason, quantity, method, purpose, repayment

[-]. Financing plan (fund raising, investment method and exit plan)
[-]. Financial Analysis

1. Financial historical data (sales summary, profit, growth in the first 3-5 years)
2. Financial forecast (the next 3-5 years)
3. Assets and liabilities

§§§Summary of the second part
§§§Chapter 1 Company Introduction

[-]. The purpose of the company (expression of the company's mission)

[-]. Company Profile

[-]. Functions and business objectives of each department

[-]. Company management

1. Board of Directors

2. Management team
3. External support (outsiders/accounting firms/law firms/consultants/technical support/industry associations, etc.)
§§§Chapter 2 Technology and Products
[-]. Technical description and technical possession

[-]. Product status

1. Main product catalog (category, name, specification, model, price, etc.)

2. Product Features

3. Brief introduction of products under development/to be developed

4. R&D plan and timetable
5. Intellectual property strategy
6. Intangible assets (trademark/intellectual property/patent, etc.)
[-]. Production

1. Supply of resources and raw materials
2. Existing production conditions and production capacity

3. Expansion facilities, requirements and costs, production capacity after expansion
4. Original main equipment and equipment to be added
5. Product standards, quality inspection and production cost control

6. Packaging and storage

§§§Chapter 3 Market Analysis

[-]. Market size, market structure and division
[-]. Target market setting
[-]. Analysis of product consumer groups, consumption patterns, consumption habits and main factors affecting the market

[-]. The current market situation of the company's products, the product's market development stage (blank/new development/high growth/mature/saturated) product ranking and brand status
[-]. Market Trend Forecast and Market Opportunities
[-]. Industry policy

§§§Chapter 4 Competitive Analysis

[-]. Whether there is an industry monopoly

[-]. Look at the market share of competitors from the perspective of market segmentation

[-]. Situation of main competitors: company strength, product situation (category, price, features, packaging, marketing, market share, etc.)
[-]. Analysis of potential competitors and market changes
Five, the company's product competitive advantage

§§§Chapter 5Marketing
[-]. Outline the marketing plan (region, method, channel, estimated target, share)
[-]. Formulation of sales policies (past/current/planned)

[-]. Sales channels, methods, marketing links and after-sales service

[-]. Status of main business relationship (agent/distributor/direct seller/retailer/franchise, etc.), qualification standard policy at all levels (sales volume/payment period/payment method/accounts receivable/freight method/discount policies, etc.)
V. Sales Force and Sales Welfare Distribution Policy

[-]. Promotion and market penetration (method and arrangement, budget)
1. Main promotion methods
2. Advertising/PR strategy, media evaluation

[-]. Product price plan

1. Pricing basis and price structure

2. Factors and Countermeasures Affecting Price Changes
[-]. Sales data statistics and sales record method, calculation of sales cycle.

3. Market development plan, sales target (short-term, mid-term), sales forecast (5-[-] years), sales, share and calculation basis

§§§Chapter 6 Investment Description

[-]. Explanation of capital requirements (amount/period)

[-]. Fund use plan and progress
[-]. Investment form (loan/interest rate/interest rate payment conditions/equity transfer—common stock, preferred stock, optional stock/corresponding price, etc.)
[-]. Capital structure

[-]. Return/repayment plan
[-]. Explanation of the original capital liability structure (time/condition/mortgage/interest of each debt, etc.)
[-]. Investment mortgage (whether there is a mortgage/collateral value and pricing basis/pricing certificate)

[-]. Investment guarantee (whether there is a mortgage/financial report of the guarantor)
[-]. Equity structure after absorbing investment
[-]. Equity cost

[-]. Explanation on the degree of investor involvement in company management
[-]. Reports (regular reports and capital expenditure budgets provided to investors)
[-]. Payment of miscellaneous fees (whether to pay intermediary fees)

§§§Chapter 7 Investment return and exit

[-]. Listing of stocks

[-]. Equity transfer

[-]. Equity repurchase

[-]. Dividends

§§§Chapter 8 Risk Analysis

[-]. Resource (raw material/supplier) risk
[-]. Market Uncertainty Risk

[-]. R&D risks

[-]. Production Uncertainty Risk

[-]. Risk of cost control

[-]. Competition risk

[-]. Policy risk

[-]. Financial Risks (Accounts Receivable/Bad Debts)

[-]. Risk management (including personnel/personnel turnover/dependence on key employees)

[-]. Bankruptcy risk

§§§Chapter 9Management

[-]. Organizational structure of the company

[-]. Management system and labor contract
[-]. Personnel plan (equipment/recruitment/training/assessment)

[-]. Salary and benefits plan

V. Equity Distribution and Share Subscription Plan
§§§Chapter 10Operation Forecast

3-5 years after the capital increase, the company's sales volume, sales volume, gross profit margin, growth rate, return on investment estimate and calculation basis

§§§Chapter 11Financial Analysis

[-]. Financial analysis description

[-]. Financial Data Forecast

1. Sales income statement
2. Cost schedule

3. Salary level schedule

4. Schedule of Fixed Assets

5. Balance sheet
6. Profit and profit distribution schedule
7. Cash flow statement

8. Analysis of financial indicators
(1) Indicators reflecting financial profitability
a. Financial Internal Rate of Return (FIRR)

b. Payback period (Pt)

c. Financial Net Present Value (FNPV)

d. Return on investment

e. Investment profit and tax rate

f. Rate of return on capital
g. Uncertainty analysis: break-even analysis, sensitivity analysis, probability analysis

(2) Indicators reflecting the solvency of the project
a. Asset-liability ratio
b.Current Ratio
c. Quick ratio
d. Fixed asset investment loan repayment period

§§§Appendix to Part III
[-]. Accessories

1. Copy of business license
2. List and resume of the board of directors

3. List and resume of the main management team

4. Explanation of technical terms
5. Patent certificate/production license/appraisal certificate, etc.

6. Registered trademark
7. Corporate image design/publicity materials (logo design, instructions, publications, packaging instructions, etc.)

8. Presentations and reports
9. Proof of venue rental
10. Process flow chart

11. Product market growth forecast chart

[-]. Schedule

1. Main product catalog
2. List of main customers
3. List of main suppliers and distributors

4. List of main equipment
5. Market survey form

6. Estimated analysis table

7. Various financial statements and financial forecasts
058. The summary of the business plan should include features
The plan summary in the business plan book is very important.It is the condensed and essence of the business plan.It covers the main points and core content of the business plan.The plan summary will be the last part of the entrepreneur's writing, but it is the first content that the funder will look at. It will extract from the plan the details most relevant to raising funds, including: the basic situation of the company's internal situation, the company's capabilities and Limitations, the company's competitors, marketing and financial strategies, the company's management team, etc.

Therefore, the plan summary should be written in such a way that it not only briefly and vividly outlines the overall picture of the project, but also highlights the key points of the project; it not only clarifies the advancement and feasibility of the project, but also clarifies the commercial value and high return of the project; It has both clear logical thinking and practical evidence chains to confirm; it can not only see the context of project development, but also let people feel the ability and role of the project implementation team; it can not only see the relevant advantages of the project, It can also clarify the direction, goals and functions of the help and support needed, and can leave a long-lasting impression on readers.

059. Conceive a business plan from the perspective of a potential investor

To conceive a business plan from the perspective of a potential investor is to think out of place.In particular, the business plan is an internationally accepted financing document. Understanding the connotation of the business plan will enable entrepreneurs to adapt to international practices in financing operations, master the internal laws of the international capital market, and rationally design their own development strategies.In fact, a good business plan can help investors discover entrepreneurial projects and enterprises with investment value and development potential, and can build a bridge of communication between investors and entrepreneurs.This is very important for start-up enterprises to obtain the support of venture capital.

When formulating a business plan from the perspective of a potential investor, there are four very important questions:
1. State your course of action

In the business plan, it should not only explain how the company designs the production line, how to assemble the product, and what raw materials are needed, but more importantly, what a venture capitalist wants to hear most is: how will you organize and direct your team to achieve your established goals? and target.

2. Showcase your management team
The key to transforming an entrepreneurial idea into a successful entrepreneurial enterprise is: to make investors feel: "This is a team that can always enter the World Cup!" Therefore, in the business plan, it should be clearly defined Point out your team's talent structure characteristics, advantages, potential and actual combat ability to fight under special conditions!
3. Ignite the light of the future

It is to show the future prospects of entrepreneurial enterprises.Here are three key points to show "Dawn":
First of all, it is necessary to show the future development trend of the entrepreneurial enterprise, so that people can appreciate the dawn; secondly, it is necessary to show the calculation basis of the future profit of the entrepreneurial enterprise, so that people can feel the dawn; finally, it is necessary to arrange the assumption and timing of the future shareholder withdrawal of the entrepreneurial enterprise , called venture capitalists to foresee the dawn.In this way, you will give yourself and others confidence and strength.

4. To demonstrate the characteristics of the product or technology in a competitive environment
Entrepreneurs should carefully analyze the situation of competitors, and make it clear: what kind of tactics and strategies you will adopt to defeat your competitors.Only in this way can venture capitalists see hope, strength, and your competitiveness and competitive strength from your business plan, and then dare to give you venture capital and support you to start a business.

060. Content design of business plan
1. Summary
The abstract of the business plan is made by extracting the core of the business plan in order to attract the attention of strategic partners and venture capitalists. It is the core and key part of the entire business plan.

2. Introduction to the Entrepreneur Team

When making a business plan, entrepreneurs should also focus on introducing the company's management team.The success of an enterprise will ultimately depend on whether the enterprise has an efficient and united management team.

3. Introduction of core competitiveness

This part is to introduce the basic situation and value of the entrepreneurial company to strategic partners or venture capitalists.The most important thing for entrepreneurs to start a business is to have products or services with market prospects, because this is the source of the company's profits.

4. Market and marketing analysis
Market analysis includes the situation of existing market users, market prospect forecast of new products or services.The quality of marketing determines the survival and destiny of an enterprise. In the business plan, entrepreneurs should establish a clear marketing strategy.

5. Financial Management
It is necessary to list all kinds of fixed costs and variable costs, direct costs and indirect costs, sales volume and price, operating performance and profits, shareholders' equity and surplus distribution methods, etc.

Entrepreneurs spend time and energy carefully writing financial management plans.Because strategic partners and venture capitalists are very concerned about the financial profit and loss of business operations.

6. Risk Analysis
When writing a business plan, it is necessary to analyze as much as possible the risks that the company may face, the degree of risk, and what measures entrepreneurs will take in the future to avoid risks or what action plans to take to mitigate losses when risks come.

(End of this chapter)