BU113: Critical Thinking and Communication in Business
Saint Michael's College

Preparing the Business Plan--report and presentation (due 3/5)

BUSINESS PLAN ASSIGNMENT

Use the following outline as a guide as you prepare your Business Plan for your company in BU113.  For Writing and Presentation instructions, see the guidelines above.

  1. COVER PAGE
  2. TABLE OF CONTENTS
  3. MISSION STATEMENT
  4. MANAGEMENT STRUCTURE/BACKGROUND
    1. Organization Chart
    2. Management Background (for each member of the management team)
      • Experience
      • Key skills and abilities
      • Role in this business and why this person is suited for this role
  5. MARKETING PLAN
    1. Product/Service
      • Supplier of the product (if applicable)
      • Description of product and key characteristics
      • What makes it unique/competitive
    2. Target Market
      • Who will use this product/why
      • Specific demographics of target market
      • Economic characteristics
    3. Competitive Environment
      • Who are your competitors
      • Strengths and weaknesses of competition
    4. Price
      • Pricing strategy
      • Pricing strategy vs. competition
    5. Promotion
      • How will you develop demand for your product?
    6. Place
      • Where will you produce your product and how will you get it to the market?
  6. FINANCIAL PLAN
    1. Projected income statement by week
      • Sales:  Number of units of product/service estimated to be sold each week  X  price
        • Example: 10 roses per week  X  $2 per rose = $20 estimated sales per week
    2. Expenses per week
      • Cost of Goods Sold (COGS): Per unit costs  X  number of units of product/service estimated to be sold each week
        • Example: 10 roses per week  X  $.25 cost to the company per rose = $2.50 total COGS
      • Other expenses per week (e.g. advertising, taxes)
    3. Net income per week: Total Sales Total Expenses per week
    4. Projected income statement for the period
      • Aggregate Sales Aggregate Expenses during the 6 weeks of running your business
    5. Equipment list (if applicable)
    6. Capital needed to get the business started
      • Schedule (table) of how much capital is needed and for what
    7. Financing sources: Outline your initial financing plan.
      • How much money will be raised through the sale of stock?
        • How many shares of stock ($.25 per share) will be sold?
          • Teams must decide on the total number of shares to be offered to outside and management investors combined.
          • All teams must offer at least 20 shares to outside investors.
          • Teams must indicate in writing in the Business Plan and at the Marketplace what percentage (%) of the company one share represents (e.g. If a team has a total of 100 shares to be offered to outsiders and management, each share = 1% ownership.)
          • Management must actually spend the money to purchase all shares that they buy.
      • ATTACH THE FOLLOWING SHAREHOLDER INFORMATION TO THE BUSINESS PLAN:
        • List of shareholders: Name of each shareholder, contact information, and number of shares bought (including management shareholders)
        • Summary of the number of shares issued to management and the number of shares issues to outside shareholders
        • The total amount of equity capital that the sale of stock to management and outsiders raised. 
        • If you expect to raise additional capital during the course of running your business, estimate how much and indicate what sources of capital you will use. (e.g. loans, stock)
    8. Projected return on equity
      • Formula to be used: Estimated aggregate net income after taxes divided by $ raised from stock issued to management and outside shareholders
         
  7.  SUPPORTING DOCUMENTS

This page was last updated: March 5, 2012