Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697644157821.pdf (Bahamas)
(Prepared by the Centre For Entrepreneurship - College Of The Bahamas) Page 1 FORMAT FOR A BUSINESS PLAN LETTER OF TRANSMITTAL The letter of transmittal introduces your business plan to the reader.

It explains your reason for writing the plan, gives the title of the plan or the name of your business, and outlines the major features of your plan that may be of interest.

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TITLE PAGE This page provides identifying information about you and your proposed business.

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It should include the name, address, and telephone number of the business as well as similar information about you.

The date the plan was finalized or submitted to the recipient should also be included on this page.

TABLE OF CONTENTS The table of contents is a list of the major headings and subheadings contained in your plan.

It provides the reader with a quick overview of the contents of your plan and allows them to quickly access the particular sections that may be of interest to them.
EXECUTIVE SUMMARY The executive summary may be the most important part of your business plan.

It must capture the attention of the reader, stimulate interest, and get the reader to keep on reading the rest of your plan.
In two or three pages this summary should concisely explain your business current status; describe its products or services and their benefits to your customers; provide an overview of your venh1!e's objectives, market prospects, and financial forecasts; and if you are using the plan to raise external financing, indicate the amount of financing needed, how the money is to be used, and the benefits to the prospective lender or investor.
(Of course this part of the plan cannot be completed until you have completed the entire business plan).

DESCRIPTION OF THE INDUSTRY The contents of the industry analysis will vary, depending upon the purpose of the business plan and the type of business.

If the plan is being written for outsiders, then it will be necessary to include more explanatory material than if it is being written for readers who are familiar with the industry.

The following information is usually included in this section: 1.
Industry Size 2.

Industry Trends 3.

Industry Characteristics 4.

Industry Outlook Once you have this information about the industry, then you should consider what this all means to your business.

Does this information provide you with any clues as to the long-run 1 outlook for your business?

Does it suggest problems that you should be aware of?

Does this information suggest steps that you should take to be more competitive in the industry?
DESCRIPTION OF THE FIRM Describe the start-up and background of the business and provide the reader with some context which to fit all the information you will be providing later in your plan.

Familiarize the reader with the company, the industry within which you will be competing, your understanding of it; and where it is headed; and what opportunities you see for the business.
For existing businesses provide: Background ' Company name (legal name and trade name if any); Location and telephone; Date of registration or incorporation; Date business was started, its present form of organization (Corporation, partnership, or proprietorship); its location and brief history of major events in past operations; Name the founders and other key people; how key products or services were chosen and developed; and what successes the business has achieved to date.
Current Situation Discuss such issues as how you have identified your market opportunity, assessed the competition, and developed some unique factor or distinctive competence that will make your business stand out from the rest.

Future Plans Discuss your goals and ambitions for the business and your strategies for achieving them.

For proposed businesses provide as much of the above information as possible.
Instead of a brief history, you should explain what the business will be, how the idea originated, and how the business is expected to develop.

Indicate the approximate date that you expect to register it and the province that it will be registered in.

(This section does not require much detail.

Most businesses should be able to provide all the information in a cohesive one-page narrative).
PRODUCT/SERVICE OFFERING Description: Describe the product or service you plan to sell in detail explaining any unique characteristics or particular advantages.

How will features of your product or service give you some advantage over competitors?

Indicate the stage of development your product is at and whether prototypes, working models or finished production units are available.

Include photographs if possible.


Proprietary position: Describe any patents or trademarks you may have applied for, or any licensing agreements or other legal contracts that may provide some protection for your product or service.

Are there any regulatory or government-approved standards or requirements your products must meet?

How and when do you plan to obtain this certification?

Potential: Outline your market opportunity as you see it and explain how you plan to take advantage of 2 it.
What are the key success factors in this business and how do you plan to exploit them to your advantage?

MARKET ANALYSIS This section of your plan should convince the reader that you thoroughly understand the market for your product or service, that you can deal with the competition and achieve sufficient sales to develop a viable and growing business.

You should describe the total market and how you feel it can be broken down into segments.
You can then indicate the segment or niche you plan to concentrate on and what share of this business you will be able to obtain.

Your analysis of the market may be based on: 1) Market studies available from private research firms and government departments and agencies.

2) Information from trade associations and trade publication.

3) Surveys or informal discussions with dealers, distributors, sales representatives, customers, or competitors.
This is often one of the most difficult parts of the business plan to prepare, but it is also one of the most important.

Almost all other sections of your plan depend on sales estimates developed from your market analysis.

Factors to consider: a) Target Market and customers b) Market Size and trends c) Competition d) Estimated Sales and Market Share MARKETING PLAN Your marketing plan outlines how your sales projections will be achieved.
It details the marketing strategy you plan to use to establish your product or service in the marketplace and obtain a profitable share of the overall market.

Your marketing plan should describe what is to be done, when it is to be done, how it is to be done, and who will do it insofar as your sales strategy, advertising and promotion plans, pricing policy, and channels of distribution are concerned.
Factors to consider: 1) Pricing 2) Sales and Distribution 3) Advertising and Promotion 4) Service and Warranty Program DEVELOPMENT PLAN If your product or service involves some further technical development, the planned extent of this work should be discussed in your business plan.

Prospective investors, bankers, and others will want to know the nature and extent of any additional development required, how much it will cost, and how long it will take before your business has a finished, marketable product.
Factors to consider: Development Status; Costs; Proprietary Issues.

3 PRODUCTION/OPERATIONS PLAN Your production/operation plan outlines the operating side of your business.

It should describe your plant location the kind of facilities needed, space requirements, capital equipment needed, and your labour requirements.
If your plan is for a manufacturing business, you should also discuss such areas as your purchasing policy, quality control program, inventory control system, production cost breakdown, and whether you plan to manufacture all subcomponents of the product yourself or have some of them produced for you by someone else.

Factors to consider: 1) Location 2) Facilities and Equipment 3) Manufacturing plans and cost 4) Labour 5) Environmental and other issues.
MANAGEMENT TEAM The management team and directors are the key to success.

You should identify: Who your key people are; their qualifications; what they are being paid; who has overall authority; who is responsible for the various functional areas of the business such as sales, marketing, production research and development, financial management; and so forth.

In most small business there are no more than two or three really key players- including the operator.
Concentrate on these individuals, indicating their education, qualifications, and past business achievements.

Indicate how they will contribute to the success of the present venture (be very cautious about hiring mends, relatives, or other people for key positions who do not have proper qualifications).

Many external investors are more concerned about the management of the business than the business itself.

They invest in the people rather than the project.


They will conduct a thorough and exhaustive investigation of each of your key players to determine whether they are the kind of people in which they wish to invest.

This portion of your plan should instill confidence in the management of your business in the mind of the reader.
Factors to consider: 1) Description of the management team 2) Directors 3) Management and Directors' Compensation 4) Shareholders 5) Professional advisors IMPLEMENTATION SCHEDULE/CRITICAL RISKS AND ASSUMPTIONS It is necessary to present an overall schedule indicating the interrelationship among the various events necessary to launch your business and the timing required bringing.

it about.
it about.

A well-prepared schedule demonstrates to the external investors that you have given proper thought to where you are going and have the ability to plan.

This schedule can be a very effective sales tool.

Factors to consider: 1) Milestones 4 2) Schedule 3) Risks and Problems.

FINANCIAL PLAN Your financial plan is basic in order to enable a prospective investor or banker to evaluate the investment opportunity you are presenting.
The plan should illustrate the current financial status of your business and represent your best estimate of its future operations.

The result presented should be both realistic and attainable.
Your financial plan should also describe the type of financing you are seeking, the amount of money you are looking for, how you plan to use these funds in the business, the terms of repayment and desired interest rate, or the dividends, voting rights, and redemption considerations related to the offering of any common stock or preferred stock.
Factors to consider: 1) Funding requested 2) Current financial statements 3) Financial projections 4) Profit and loss forecasts 5) Pro forma balance sheets 6) Projected cash flow statements 7) Breakeven analysis/Ratio analysis APPENDIXES The appendixes are intended to explain, support and supplement the material in the body of your business-plan.

In most cases this material is attached to the back of the plan.
Examples of the kind of material that might be included in an appendix are: 1) Product specifications and photographs 2) Detailed resumes of the management team.

3) Lists of prospective customers 4) Names of possible suppliers 5) Job descriptions of the management team.

6) Consulting reports and market surveys 7) Copies of legal documents such as leases, franchise and licensing agreements, contracts, .

licenses, patent or trademark registrations, and articles of incorporation.

8) Letters of reference.


9) Relevant magazine, trade journal, and newspaper articles.

5 Top 20 Questions TOP 20 QUESTIONS TO ASSIST WITH THE PREPARATION OF A BUSINESS PLAN 1.

What type of business do you have or wish to have?

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What is the purpose of your business / What will be the purpose of your business?

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What is the key message or phrase to describe your business in one sentence?

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What is your reason for starting / wanting to start your own business?

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What is your product or service/What will be your product or service?

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Can you list three unique benefits of your product / service?

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Do you have datasheets, brochures, diagrams, sketches, photographs, related press releases or other documentation about your product/service?

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What is or will the product /service be about?

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What led you to develop your product/choose the product/service?

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Is this product/service used in connection with other products?

If Yes, Describe: 11.


List the top three objections to buying your product or service immediately?

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When is the start up date for your product/service?

13. Who is your main target group/Who will be your main target group?

14. Who is your competition / Who will be your competition?

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How is your product / How will your product be different from that of your competitor?

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What is/will be the pricing of your product versus your competition?

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Are you making any special offers / Will you be making any special offers?

18.

What plans do you have for promoting & advertising your business?

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How will you finance your business?

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Do you have the management team in place to reach your goals?

21.

Do you have the management team in place to reach your goals?

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