Description

When a team of entrepreneurs (“seed investment”) decides to take their first steps and establish their business, or when a young business (“round A investment”) is about to raise additional funds to expand its activity, they will usually require a concrete plan for action, a business plan. This predefined strategy and vision will help them with execution. It is also a must document when attracting external capital, be it from an private/angel investor, a VC firm or a bank.

One would normally need a business plan when:

• Seeking funding, investments, or loans
• Searching for a new partner or co-founder
• Attracting, hiring, and retaining top talent
• Experiencing slow growth and need a change

Preparation of a 20-50 pages business plan which typically includes*:

Executive Summary (1-2 pages) – summary illustrating the key points of the business plan.
Business Overview (1-3 pages) – description of the business: team, mission, vision, type (internet, storefront, etc.), industry, location, legal structure, formation history, patents and other intangible assets
Management Team Bio (1-2 pages) – concise background information on all key people involved in the business.
Operations Plan (3-8 pages) – explanation on how the business will function: physical setup, responsibilities, business objectives, specific tasks, a plan to approach target audience, etc.
Market Analysis (3-8 pages) – an overview of the market (when appropriate, includes illustrations, charts, tables, etc.),
Products and Services (1-7 pages) – brief description of each product or the services to be offered, classifications of the different types of products or services.
Strategic Analysis (3-8 pages) – strengths, weaknesses, opportunities and threats, of existing and potential direct and indirect competitors, as well as competitive advantage and ways of keeping it.
Sales and Marketing (2-6 pages) – pricing and sales information, defining distribution and marketing channels, describing main selling points.
Required capital (2-6 pages) – amounts needed to start or maintain the business, how it would be used, breakdowns into different time frames, requirements for additional funding in the future
Financial Plan (3-8 pages) – Projections of income (revenue streams) and expanses (ongoing business expenses – salaries, insurance costs, marketing, etc.) for 1-5 years. Drafting a basic P&L/ balance sheet.

* Business plan chapters may vary depending on the industry, maturity and the specifics of each case. The chapters above are an example of a typical structure.
** Drafting an offer for a potential investor, will require additional payment