Page 22 of 22Business plan for a new businessThe business plan consists of a narrative and several financial worksheets. The narrative template is the key to the business plan. It contains more than 150 questions divided into several sections. Omit any questions that do not apply to your type of business. When you have finished writing your first draft, you will have a collection of small essays on the various aspects of the business plan. The next stage is to edit them into a smooth-flowing narrative.The real value of creating a business plan is not in having the finished plan in your hand; rather, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but will help avoid costly, perhaps disastrous, mistakes later.This business plan is a specific model suitable for high-tech businesses. Before you begin, look at the 1st section Tailoring the plan. It has tips for fine-tuning your plan to make an effective presentation to investors. If this is why youre creating your plan, pay particular attention to your writing style. You will be judged by the quality and appearance of your work as well as by your ideas.It typically takes several weeks to complete a good plan. Most of that time is spent in researching and revising your ideas and assumptions. But this is the value of the process. So make time to do the job properly. Those who do so never regret the effort. And finally, be sure to keep detailed notes on your sources of information and on the assumptions underlying your financial data.Tailoring the planThe generic business plan presented should be modified to suit your specific type of business and the audience for which the plan is written.For raising capitalFor investorsInvestors have a different perspective. They are looking for dramatic growth, and they expect to share in the rewards:o Funds needed short-termo Funds needed in two to five years timeo How the company will use the funds, and what this will accomplish for growtho Estimated return on investmento Exit strategy for investors (buyback, sale or IPO)o Proportion of ownership that you will give up to investorso Milestones or conditions that you will accepto Financial reporting to be providedo Involvement of investors on the board or in managementFor type of businessHigh-tech companiesEconomic outlook for the industryWill the company have information systems in place to manage rapidly changing prices, costs and markets?Will you be on the cutting edge with your products and services?What is the status of research and development? And what is required to:o Bring product/service to market?o Keep the company competitive?How does the company:o Protect intellectual property?o Avoid technological obsolescence?o Supply necessary capital?o Retain key personnel?High-tech companies sometimes have to operate for a long time without profits and sometimes even without sales. If this fits your situation, a banker probably will not want to lend to you. Venture capitalists may invest, but your case must be very good. You must do longer-term financial forecasts to show when profit take-off is expected to occur. And your assumptions must be well documented and well argued.Business planOWNERSYour Business NameDateE-MailWebpageTable of contents1.Executive summary62.Introduction to the Company and its Management72.1Company Overview72.2Organisational Structure72.3The Management Team72.4Advisory Board72.5Proposed Management Compensation72.6Headcount Forecast73.Products and Services Description83.1Products and Technologies Introduction83.2Detailed Development Plan83.2.1Product Roadmaps83.2.2Development Stages83.3Future Applications84.Marketing Analysis94.1Market Trend94.2Market Segmentation104.3Market Gap (Unique Selling Point)104.4Competitive Analysis105.Business Model125.1Core Competence125.2SWOT Analysis125.3Marketing Plan125.4Sales Forecast145.4.1Realistic Scenario155.4.2Optimistic Scenario155.4.3Pessimistic Scenario156.Risk Analysis and Management166.1Technical Risk166.1.1Technology Safety166.1.2Product Quality166.1.3Delay166.2Competition Risk166.3Management of Growth176.4Market Risk177.Financial Plan187.1Summary of Assumptions187.1.1Revenue187.1.2Direct Variable Costs187.1.3Fixed Asset Investment187.1.4Human Resources187.1.5Services Rendered by 3rd Party187.1.6Infrastructure and Operational Costs187.1.7Marketing187.1.8Tax187.2Break-Even Position187.3Projected profits197.4Investment and Return197.5Financial Statements198.Business Feasibility and I