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How to Write a Business Proposal

Do you know how to write a business proposal that gets the needed attention? Do you need a sample format on how to write a business proposal that wins? Then i advice you read on.

A business proposal is one of the most powerful and important documents in the corporate world. The reason i say this is because most big projects, contracts, partnerships, joint ventures, mergers and acquisitions, business financing, fund raising, etc; all begin with a business proposal. Now for those who may not know what a business proposal is, i will take a moment to provide a definition.

What is a Business Proposal?

A proposal is an intended course of action that is yet to be executed. According to Wikipedia, a business proposal is a written offer from a seller to a prospective buyer. Business proposals are often a key step in the complex sales process; for example, whenever a buyer considers more than price in a purchase.

A business proposal is written to persuade your prospective client. It is meant to answer all their questions on why you are the best and should be chosen. In order for your business proposal to answer your clients questions, you must know your clients questions and expectations beforehand. Hence the first step to writing an irresistible business proposal is to know all your clients expectations. So without wasting your time, below is my exact step to writing a business plan.

A Sample Format on How to Write a Business Proposal that Wins

  • Step 1 – Explain Yourself

Your first paragraph of your proposal must be a short descriptive heading in addition with a theme statement. In the first paragraph, you must explain who and what you are. State what is distinguishing and significant about you or your company. If possible, state briefly the team behind the project.

  • Step 2 – Be Specific

Be specific in stating why you/ your company/ your product is the best . This could be done by stating your experiences, skills, technology, quality or functionality. It is also important you state how what you have to offer will make a difference in their business. But you must be careful how much information you reveal especially if you are dealing with an intellectual product or an idea. But if it is a contract you are pursuing, then you can state as much information as you deem necessary.

  • Step 3 – Make it easy for them to say yes

So many business proposals has been rejected because they look either very complicated or sound like much work not minding how lucrative they are. ake your business proposal to be as simple as possible for easy understanding.

  • Step 4 – Show them the money

If there is one thing everyone who reads your proposal desires, it is winning. Investors want to invest in winning investments, government entities want to deal with individuals or companies that have the capacity to deliver at the right time. Corporate firms want to partner with winning companies or personalities. The hard truth is that everybody wants to win including you.

So it is very important that you logically explain to your prospective client how much they stand to gain if they choose partner with you or your company. Don’t make a guess, entirely stand your predictions on your currently marketing stats, sales conversion rates and other real information.

  • Step 5 – Your proposal should carry a sense of urgency but not desperation

When writing a proposal, you must try to politely inform to your potential partner that you won’t wait long to hear back from them. Make them understand that if you don’t hear from them soon, that you will have to look for someone else. Anywhere. This will proof to them that you are competent enough and that you know what you are doing.

  • Step 6 – Summarize your proposal

Towards the end of your proposal, you must highlight anything that you believe is notable and which separates you from competition. You must make it professional and realistic and with accurate contents. Your business proposal has to be brief but it must contain as many information as possible.

In conclusion, it is also important you know that rapport is all you need have your potential partner like and trust you. Help them out in one way or the other and become their friend before proposing a business idea or project. By doing so you will be able to know the expectations of your prospective client.

Best Small Business ideas

Are you an entrepreneur looking for the best small business ideas for 2013? Do you need a list of business ideas for beginners or startup business ideas with low investment? Do you want to quit your job this year and start a business? Then please read on because this article is for you.

I once wrote an article on how to make a million dollars fast and how to start a business with no money. So i this article, I will be revealing the best small business ideas, best franchises opportunities, new startup business ideas, home based business ideas for students and who wish to take the entrepreneurial bull by the horn this year. This list of entrepreneurial ideas will prove useful to all entrepreneurs; regardless of the available start up capital.

An entrepreneur with a startup business capital of $1,000 or less can take advantage of the business opportunities list here just as the entrepreneur with a million dollar startup capital. The only difference between these two classes of entrepreneurs will be their level of play. So don’t be deterred by the magnitude of startup capital at hand; after all, Rome was not built in a day.

Before I list my best small business ideas for the year, I want to clearly state that this list does not in any way replace the need for you to do a feasibility study and come up with a winning business plan, so take note. Also bear in mind that this list does not in any way minimize the business challenges involved with starting a business; neither does it make the entrepreneurial process easier, nor does it eliminate the risk of business failure.

  Who will Benefit Most from these Proven Successful Small Business Ideas

  • Men
  • Young people
  • Entrepreneurs
  • Women and House wives or Moms
  • Kids and Teens
  • College students
  • Employees and Civil servants
  • Retirees

  A useful advice for those seeking the top small business ideas for 2013

In as much as I have taken pain to prepare this list, I want to point out an honest truth and that truth is this:

“There is nothing like the best business idea or opportunity. There is nothing like the best business environment or business plan, you just have to work with what you have and understand it to the core.”

The truth is that you can find success in any industry or sector you choose. All you need is to understand your customer’s need and add a little innovation to your business. So whether you are searching for internet business ideas, good work from home low capital business ideas or manufacturing business ideas; you will surely find this article useful. I think I have said it all; it’s up to you now to either accept the reality or continue to chase shadows. So if you are still ready for something new; then read on as I share with you 50 great startup business ideas for the year.

How to Create or Choose the Best Small Business Ideas

 Top 50 List of Best Small Business ideas: Startup Business ideas for 2013

  • Start an internet business

Best Online Business ideas – Do you intending starting an internet business or a brick and mortar? Well, regardless of the industry you intend breaking into or the business idea you have your sleeves; it is advisable you build an internet company around it. Putting your business on the web is probably the best venture ever. Why? The reason is because the internet is still a rapidly growing trend, thus making an online business a hot one. All you need to start your own internet business is just a little innovation on your already existing idea. Jeff Bezos did it with Amazon, by putting a bookstore on the web. You can do the same.

  • Start a food retail or wholesale business

Food retail business is one business I am passionate about; especially staple foods. Why? The reason is because humans must eat to survive. Regardless of the economic condition, or your personal financial situation; you must eat. With an ever growing demand for food worldwide, propelled by a rapidly bursting population; the food business is something you should start today.

  • Green business ideas

Green Business ideas – The green business industry is a rapidly growing trend. Just as the internet was a fast growing trend in the 80s, the green business is the next wave of trend that will create millionaires and billionaires. In fact, this is an innovative hot business opportunity with a future potential. With a increase in eco-consciousness and the need to conserve energy; you definitely need to go green now before it’s too late. You can practically venture into the industry in any capacity; from retailing energy bulbs, solar panel and installation, inverters and power generators, etc.

  • Start a cleaning business

How to start a janitorial business – You can start a cleaning business in any capacity ranging from carpet cleaning, floor cleaning, roof cleaning, office cleaning, foreclosed properties cleaning, home cleaning, etc. You can also operate this business on a part time basis.

  • Start a poultry business

How to start a poultry farm business – The poultry business itself is a broad niche. You may decide to focus on Domestic fowls or hen, ducks, quails, turkeys, guinea fowls, peacocks, etc. You may also decide to go into operating an incubator or hatchery, poultry feed production and retailing, egg production, etc.

  • Start a catering business

How to start a catering business from home – As a caterer, you can choose to go into full scale catering services alongside event planning services or you may decide to specialize on food cooking, snacks baking or cakes, barbeque preparation, etc.

Service Business ideas

Industry Based Business Ideas

Regional Business ideas

Gender Based Business ideas

 Skill Acquisition

Top 50 List of Best Small Business ideas: Startup Business ideas for 2013

Small Scale Business Opportunities

What are the Elements and Components of a Good Business Plan

What are the elements and components of a good business plan? What makes a business plan attractive to investors, bankers and VCs? Well, you are going to find out in this article.

From my experience as an entrepreneur and investor, I can confidently say that all business plans are not equal. Investors and VCs are so used to being pitched almost on daily basis; in fact, they have tons of business plans to look at every day but what most people don’t know is that investors or VCs have limited time; hence they can decide if your business plan is worth it in less than five minutes. Now what components and elements are VCs or investors looking to see in your business plan? What are the exact elements that hold their interest? I will share that with you.

Why these components are important in a business plan

The elements and components of a business plan are necessary tools or guide line which a good business man should be equipped with before starting a business. A good business plan is a blue print or a vision of the company. The elements and components of a business plan are also important so that regardless of the challenges and crises your business faces in the future; it will not falter or panic in the face of adversity. The elements and components of a business plan enable business partners to confidently adjust to the times as smoothly as possible even with the onslaught of competition and emerging new businesses and markets.

Nine elements and components of a business plan

  • Executive Summary

The executive summary gives the outline of the plan’s key sections like your company’s mission and vision, brand profile, target markets, product and services, competition, marketing strategy and financial aspects. A good executive summary is engaging and brief, with just the first two pages convincing the reader to read on the entire business plan. In fact, your executive summary is the predominant factor that determines if your business plan will be read or dumped in the trash bin.

  • Company Description

The Company description provides the profile of your company, its history, its drivers, what it does and how it operates. It is the company’s mission statement which is supposedly brief and direct to the point stating its purpose for business.

  • Target Market

The target market section identifies in detail; the customers of your company, the brands and the products. This identification of target market will very much affect other operations in the company like marketing, manufacturing and the likes. It is important for market profiles to be specific because the success of the company will rely largely on how much this target market’s needs are identified and met. At this point, it is very important that you answer the following questions:

  • Who are the customers of the company?
  • What value does the company give to its customers?
  • How does the company help its customers achieve such value?

  • The Competition Situation

Another important element of a good business plan is the competition analysis. To write a good business plan and successfully launch your startup, you must identify the competition of the business. This goes beyond the profiles of such competing companies and brands. It should also include their strengths and weaknesses. This is where the need for a SWOT analysis comes into play. It is important to have a clear view of what the business is up against, so as not to be complacent. This section should be able to identify primary and secondary competitions, the difference between their value propositions from your company’s own value proposition, and the company’s competitive advantages and disadvantages.

  • Marketing Strategies

Your Marketing strategy is another component of a business plan that addresses the five P’s of marketing; which are: product, price, person, place and promotion. Your company may have a good product but without an effective marketing strategy, everything is futile. To develop a good marketing strategy and plan, you need to answer the following questions:

  • What are you selling?
  • How much does it cost?
  • What is the target market?
  • How will the products be distributed?
  • How will the target market know and be lured to the buy the products?

Elements and components of a business plan

  • Operations

Yet another part of the elements and components of a business plan is the Operations segment, which describes the work flow of the business. It may not be detailed in the business plan but it should nonetheless have a structured view of the company’s working process.

  • Management and Organizational Structure

Management and organization identifies the organizational structure of your company including the key managers. This part is very important especially in terms of seeking capital because investors will be interested in the background of the company’s management team and their corresponding salary scale.

  • Long-term Plans

Long-term development is another critical component of a business plan. It shows in detail, the long term plans of your company by considering its future profits and growth. It provides a timetable for these plans as well as the sensitivity or risk factors. This part of the plan provides visual graphs of what the business will be like one, three, five or more years from now.

  • Financial Aspect

Lastly, the elements and components of a business plan would not be complete without the financials. This part has a clear view of the financial projections of the company for the first few years of the business. This part includes income statements, anticipated profits, cash flow analysis and break-even analysis.

In conclusion, I want you to know that one of the underlying factor that makes a strong business plan is your “being precise or specific” with the details. Investors are busy people, so respect their time and hit the nail of the head but be sure you don’t omit important details or information.

Five Conditions That Makes a Business Opportunity Feasible

What makes a business opportunity feasible? How do i identify a good business idea or opportunity? How can i determine the profitability of a business venture before investing in it? I advice you read on to find out.

Everyday, I come across entrepreneurs who are so excited because they have just thought up a new business idea or discovered a business opportunity with massive potential. Being an entrepreneur and investor, I am often privileged to have a sneak preview of business investment opportunities before they are launched or made public.

Sometimes, I am given the opportunity to invest in such businesses. Now how do I know the right business opportunity to invest in? What benchmark do I use to analyze the potentials of a business opportunity? What makes a business opportunity feasible? How do I know if my business idea is viable? If you are willing learn the secrets to finding feasible business opportunities, then read on.

In this article, I am going to highlight five factors you can use as a yardstick to know if the business opportunity you are pursuing is feasible. The five factor I am about to highlight does not in any way replace the need for a detailed feasibility study. To know the preliminary feasibility or viability of your proposed business opportunity, the checklist below will help you.

  Five Conditions That Make a Business Opportunity Feasible

1.  Real demand

The first condition that makes a business opportunity viable is market demand. Your business idea or opportunity must have real market demand. Your business opportunity must either satisfy a need or solve a problem.

2.  Good return on investment

The next condition that makes a business opportunity feasible is the ROI. Any business opportunity you intend to pursue must show a strong possibility of yielding a good return on investment. Moreover, all a business is meant to do is to either satisfy a need or solve a problem for a profit.

3.  Competitive

The third condition that makes a business opportunity feasible is its competitiveness. Except your business idea is the first of its kind, there is bound to be competition. If your business idea or opportunity is not competitive, just forget it because it will never stand a chance.

4.  Meet the objectives of the entrepreneur

This point is very clear and easy to understand. Before ever starting a business, there are certain aims and objectives you intend to achieve using that business as leverage. For a business opportunity to be viable, it must meet your objective.

5.  The competence of the entrepreneur and his team

Lastly, the most important factor that makes a business opportunity worth pursuing is the competence of the entrepreneur and his business management team. A business opportunity will only be feasible if it is backed by a strong business team. I say this because I have seen good and solid business opportunity fail to breakthrough because of the incompetence of the team.

In conclusion, these are the five conditions I use to determine the preliminary feasibility of any business opportunity I intend to take advantage of and I hope they will serve you as well.

5 Reasons Why You Must Conduct Feasibility Study before Starting a business

What is the importance of conducting feasibility study before starting a business? Can conducting feasibility study give your business an advantage and help reduce the high rate of business failure? Well, i advice you read on.

A feasibility report is an often ignored but vital prerequisite to building a successful business from scratch. In fact, not doing feasibility is one of the silly mistakes entrepreneurs make when starting a business. So in this article, i will be stressing the need to conduct feasibility study.

“Starting a business is like jumping out of an airplane without a parachute. In mid air the entrepreneur begins building a parachute and hope it opens before hitting the ground.” – Rich Dad.

Few years ago, before starting a business of my own, I was privileged to assist my dad in overseeing the affairs of his business. Our little company was in the business of importing and distributing sanitary wares. Business moved on smoothly for many years till we began to experience a decline in sales and decrease in profit margin due to stiff competition and inconsistent government policies. My dad decided to diversify so he made a move into the clothing line based on the recommendation of a nephew.

Since he started his first business from scratch without conducting a feasibility study, he thought he could repeat the feat in the clothing line. As expected, the business flopped in less than two years due to many unforeseen factors I wouldn’t want to mention here and we lost a lot of money. Though this experience was painful, I learned a lesson I will never forget in my life and that is: “The Importance of Conducting a Feasibility Study before Starting a Business.”

I know many out there have made this same business mistake and many are still to bound to make it. Having shared my story; let me highlight five reasons why you need to conduct feasibility study before starting a business.

 5 Reasons Why You Must Conduct Feasibility Study Before Starting a business

1.            A feasibility study will help you to determine the profitability of the business venture. Before starting a business, seasoned entrepreneurs and investors would want to know if the business would be worth their time, effort and resources. It is worthwhile to know that many entrepreneurs have abandoned solid business ideas because the profitability could not be ascertained on conducting a feasibility study on the business idea.

2.            A feasibility study will help prove to the entrepreneur, venture capitalists, lenders and investors the existence of the market, the liquidity of the business venture and the expected return on investment.

3.            A feasibility study will help you identify the flaws, business challenges, strengths, weaknesses, opportunities, threats and unforeseen circumstances that might affect the success and sustainability of the business venture. Just like the case of my dad’s business, the business failure and loss of money would have been avoided if we had carried out a feasibility study. We simply jumped in based on someone’s recommendations because we were flushed with cash and we paid dearly for it.

4.            Before starting a business, a feasibility study will enable you estimate the financial, human and technological resources that will be needed to ensure the successful launching of the business. Feasibility study helps to reveal the number and level of skill or unskilled workers to be employed and their salary scale.

5.            Feasibility study will help you to determine the amount of capital required to start the business. It will also help you in establishing the budget plan, working capital and cash flow projections of the business.

As a last note, my advice to you is this:

“Never invest a dime without first carrying out feasibility study on the business idea.”

10 Small Business Success Secrets of Aliko Dangote

What are the business success secrets of Aliko Dangote? How did Aliko Dangote become a billionaire and the richest black man in the world? Well, i advice you read on to find the answers you seek.

Culling from a popular quote that says “if you want to be rich and successful, observe what the rich are doing and do the same.” I don’t know how effective this strategy can be but I feel there is an atom of truth in that statement.

Today, I will be sharing with you some small business success secrets from one of my mentors; Aliko Dangote. This mentor of mine is extremely rich and has been ranked as the richest black man in the world by Forbes Magazine.

So if learning and understudying the rich can give us insights into their business success secrets if building a business from scratch is your utmost priority, then I am sure we are definitely going to get some hard core business tips from this billionaire. Below are the ten small business success secrets of Aliko Dangote; the richest black man in the world.

 10 Small Business Success Secrets of Aliko Dangote

1.Manufacture; don’t just trade

Aliko Dangote started business as a trader of commodities; he gathered business confidence and experience as he grew. In an interview granted, he openly admits that one of his greatest business moves was moving from being a trader to being a manufacturer.

He summed it up by saying,

“Manufacture, don’t just trade. There is money in manufacturing even though it is capital intensive. To achieve a big breakthrough, I had to start manufacturing the same product I was trading on; which is commodities.”

I am an advocate of manufacturing because it does not only improve your business status, it also helps you give back to your community and country; with respect to job creation and economic development.

2.Build a brand, and don’t destroy it

This is the second small business success secrets of Aliko Dangote. Aliko Dangote is one of the firm believers of the “Brand Power” and this is what he has to say about it:

“To succeed in business, you must build a brand and never destroy it. One competitive advantage I had when I ventured into manufacturing was my brand “Dangote,” which I diligently built in the course of my trading commodities.” – Aliko Dangote

Sometime ago, Coca Cola’s assets were estimated to be worth $3billion but the brand name alone “Coca Cola” was valued at over $80billion. That’s the power of a brand. So why not start building a brand today? Your brand could be your saving grace in hard times; it could also turn out to be a very strong competitive advantage for your small business.

3.Sell cheap, give quality and don’t kill the competition

To build a successful business, Aliko Dangote emphasizes the importance of selling quality products at affordable price. Selling quality products at an affordable price helps in increasing customer’s loyalty.

With respect to competition, Dangote has this to say;

“Don’t kill the competition. Competition is healthy for businesses. It keeps you the entrepreneur on your toes.” – Aliko Dangote

“There is one rule for the industrialist and that is: make the best quality goods possible at the lowest price possible, paying the highest wage possible.” – Henry Ford

10 Small Business Success Secrets of Aliko Dangote

4.Start small but dream big

“I built a conglomerate and emerged the richest black man in the world in 2008 but it didn’t happen overnight. It took me thirty years to get to where I am today. Youths of today aspire to be like me but they want to achieve it overnight. It’s not going to work. To build a successful business, you must start small and dream big. In the journey of entrepreneurship, tenacity of purpose is supreme.” – Aliko Dangote

5.Have connections and pray for a big break

The next small business success secret is business connections. Aliko Dangote is respected for his strong network of business and political connections. You can build your connections and strengthen your network in the business world by increasing your corporate social responsibility, signing joint ventures and partnership deals, forming strategic alliances, attending business events and parties, making political donations and paying courtesy visits to those at the helm of affairs.

To survive in business, you must strengthen your business connections and network. And most importantly, you must pray for a big break. Big breaks are very vital to entrepreneurial survival. In fact, I can hardly point to any successful entrepreneur that wasn’t thrust upwards by a big breakthrough.

  • Bill Gates had his big break when he negotiated and signed a deal with IBM.
  • Aliko Dangote had his big break when he secured a license to import cement. Oprah Winfrey had hers when she started Harpo Studios Productions and acquired the full rights to her shows; “The Oprah Winfrey Show.”
  • Li Ka Shing had his during a riot period and he began buying properties at rock bottom prices.
  • Larry Ellison had his when he secured a deal to build database software for the CIA. The list goes on and on.

So if you really want to take a giant stride in business, you must not only pray for a big break; you must seek it out and be prepared for it when it comes.

6.Believe there is money to be made in your country

Dangote believes one of the main prerequisite to building a successful business and ultimately becoming rich is developing a firm belief in your country. Dangote is a firm believer in his country Nigeria. He believes opportunities abound everywhere but it just takes a smart eye to see them. He encourages everyone to seek opportunities in their own country instead of seeking greener pastures in other countries.

7.All work and less play makes Jack a rich man

A popular saying goes “all work and no play makes Jack a dull boy,” but billionaire Dangote believes that all work and less play makes Jack a rich man. Hear him:

“I enjoy myself a lot but I derive more joy in working. I believe in hard work and one of my business success secrets is hard work. It’s hard to see a youth that will go to bed by 2am and wake up by 5am. I don’t rest until I achieve something.” – Aliko Dangote

My mentor has said it all but I want to add something crucial and that thing is this; “working hard alone doesn’t guarantee success, you must also work smart.“

8.Give back to those who made you

I hope you are conversant with the saying that goes “no man is an island.” You can never get rich alone. There have to be contributing factors and individuals you will need to leverage upon. Dangote believes in the principle of “give and it shall be given unto you.” Just as stated above, one of the small business success secrets is this; you must give back to those who made you.

“No man becomes rich without himself enriching others.” – Andrew Carnegie

Now who are those who made you? These are individuals or entities you leveraged upon to get to the status you are now. They are those who gave you a helping hand when you needed it most.

They could be those who gave you business contacts, connections and encouragement. They could be business associates, political associates, investors, loyal customers, good suppliers, political associates, your employees, business team, business partners and so on.

9.Obey the laws of the land

“Why risk going to jail by engaging in illegal businesses when it is easier to make money legally? – Rich dad

Dangote advises entrepreneurs to be law abiding citizens. He encourages everyone to do business as outline by the regulatory bodies. Obeying the laws of the land also entails keeping your credit and tax record clean. Nothing hurts more than striving to build a business empire only to have your assets impounded or frozen by the authorities. So do the right thing.

10.Business must flow in your blood

Lastly, Aliko Dangote revealed that you must have business flowing in your blood if you really want to make it big as an entrepreneur. I solely agree with him. Look at all successful entrepreneurs, they seem to possess a different kind of spirit. That’s the entrepreneurial spirit.

Everything around you must smell business. That is to say you must think business, dream business and live for business. It’s all about the entrepreneurial spirit. The same spirit that kept Warren Buffett in the game even at old age, the same spirit that drives General Electric even after the death of its founder; Thomas Alva Edison. Without this spirit, you will ultimately fail.

Business flowing in your blood entails tenacity, doggedness, shrewdness and every single attribute required to keep you going in the game of entrepreneurship.

Business Plans

Are you in the process of starting a business? Do you need sample business plans related to you industry that will help you write your own business plan? Then search no more as I share with you a compilation of 100+ free sample business plans and templates.

Writing a business plan is one of the most challenging tasks an entrepreneur must engage in, if success is to be attained. Unfortunately, it is a task that cannot be skipped or done in haste. Most people hand this task over to a business consultant and look away; others rely entirely on software but this is totally wrong. You must be involved in the writing of your business plan; in fact, you are the best person to write the plan. Why? The reason is because no one knows your idea more than you. So without wasting your time, below is the ultimate guide to making a business plan.

100+ Free Sample Business Plans for Small Business

Preparing to Write Your Business Plan

How to Write a Business Plan for Small Business

100+ Free Sample Business Plans for Small Business

Farming Business Plan

Service Based Businesses

Fashion Business Plan

Food Business Plan

Entertainment Business

Education Businesses

Internet Based Businesses

Real Estate

3 Difference between Feasibility Study and Business Plan

What’s the difference between a feasibility study report and a business plan? Can a feasibility report be converted to a small business plan? Well, I will advice you read on to find the answers you seek.

Now there seem to be a mix up between feasibility study and business plan. While some say they are the same, others argue they are not. So I want to use this medium to draw a line between a feasibility report and a business plan. Though the process involved in developing a feasibility report and a business are similar, I will reveal to you some basic difference between conducting feasibility study and writing a business plan.

3 Differences between Conducting Feasibility Study and Writing a Business Plan

1.            A feasibility study is carried out with the aim of finding out the workability and profitability of a business venture. Before anything is invested in a new business venture, a feasibility study is carried out to know if the business venture is worth the time, effort and resources.
On the other hand, a business plan is developed only after it has been established that a business opportunity exist. This simply means that a business plan is prepared after a feasibility study has been conducted.

2.            A feasibility report is filled with calculations, analysis and estimated projections of a business opportunity. While a business plan is made up of mostly tactics and strategies to be implemented in other to start and grow the business.

3.            A feasibility study is all about business idea viability while a business plan deals with business growth plan and sustainability.

I hope this few words have been able to point out the key differences between feasibility study and business plan. I feel it’s also worthwhile to know that a feasibility report can readily be converted to a business plan. To achieve this, all you need to do is incorporate your business strategies and tactics into the feasibility report; and you are good to go.

A Complete Sample Business Plan Format, Template and Outline You Can Use As a Guide

Do you want to learn how to write a business plan for small business? Do you need a sample business plan template? Or you just need a complete small business plan format or outline? Then read on.

Today, I want to share with you a practical sample business plan format and outline. It outlines everything that I covered in the my previous posts with respect to writing a business plan that attract investors, so seat back, read and digest.

                A Complete Example of a Business Plan Format and Outline You Can Use As a Guide

Business Plan: Rainbow Kites, Inc.

SUMMARY

BUSINESS CONCEPT

The Kite industry has expanded rapidly in the past several years and growth is expected to continue at a strong pace for the foreseeable future. This offers excellent opportunities for new companies to enter this market. We intend to address the needs of customers in this market who seek higher quality, higher priced kites. We will address this need by importing, selling and distributing higher end kites in the US and Canada. Distinguishing characteristics of our business will be top quality products, special emphasis on higher end independent retailers, and high level of service.

CURRENT SITUATION

We are a start-up company, incorporated in 1998 in the State of California. The principal owner is Tom Anderson whose title is President and who has many years of experience in the toy industry. Other key personnel include Nancy Anderson, his spouse who has experience in customer service, bookkeeping and office work. At this time we are seeking additional equity capital to compliment our own equity investment and seeking to arrange a bank line for inventory and receivables financing. We have firm commitments to distribute several highly sought after overseas kite manufacturers and have verbal commitments from independent retailers primarily along the West Coast to stock our products. We hope to ship our first products within six months of finalizing financing arrangements.

KEY SUCCESS FACTORS

The success of our business will be largely a result of superior products, superior service, extra attention to detail throughout our operation, personnel and our high level of experience in the industry.  In particular what really sets us apart from the competition is that we are ONLY going to sell high end kites and we are ONLY going to sell to higher end outlets. This will allow us to give absolutely top service and product selection for these accounts without getting distracted from the very different product and service demands of the more mass market outlets.

FINANCIAL SITUATIONS/NEEDS

In order to effectively launch the business, we project a total need for $300,000 in equity financing. Principal uses of the funds will be to finance operations until cash flow becomes positive and to create a stronger balance sheet in order to help secure additional bank lending against to finance inventory and receivables. To date we have raised $132,000 from founders, Tom and Nancy Anderson, and their relatives. We project that the company will be profitable within two years. We project that within three years of reaching break-even that this new investment could be cashed out by either the founding partners purchasing this investment stake or by replacing the investment stake with additional bank financing.

Sample Business Plan Template

                VISION STATEMENT

Our vision of what our company will become in the future is to have developed relationships with key retailers so strong that they will view us more as indispensable partners, than just another supplier. We will work closely with each retailer we serve to recommend product assortment unique for their customer base, appropriate stocking levels, pricing and display assortments. We will constantly seek out and work with the manufacturers we represent to deliver the most innovative and exciting products possible to the retailers we serve.

MILESTONES

1. Overseas manufacturers agreements in place…done.

2. Verbal commitments from many West Coast retailers…done.

3. Presentation to potential investors…underway now.

4. Presentation to potential banks for inventory and receivable financing…underway now.

5. Financing commitments in place..60 days.

6. Product catalog completed…30 days…

7. Additional sales reps being recruited…underway now…

8. Sales rep selection finalized…60 days.

9. Warehouse lease signed…90 days.

10. First written orders from retailers… 75 days.

11. First orders to manufacturers…110 days.

12. First shipments from our warehouse…160 days.

MARKET ANALYSIS

THE OVERALL MARKET

The overall size of the industry is currently $150 million in the US and Canada. Because the industry includes a very diverse group of product types with significantly different characteristics, it is more meaningful to break out analysis of the industry into roughly two groups. The first group and by far the larger unit volume are lower end kites sold primarily through mass market outlets such as discount department stores. The second group are higher end kites that are sold largely at independent and specialty chain stores. While the unit volume is much less, the dollar volume is approximately the same ($75 million) as that for lower end kites because the average price point is much higher.

CHANGES IN THE MARKET

The most significant development in this marketplace recently has been the shift in toy and kite business away from independent stores to national mass marketers over the past decade. However, recently this trend has slowed as independent toy and novelty retailers have become better at differentiating themselves and their product selections from those offered by national mass marketers.

MARKET SEGMENTS

The market is primarily segmented by distribution channel. The mass market retailers are looking for low-priced products and a high percentage of their products are licensed merchandise, for example based upon kid’s cartoon characters. Independent specialty retailers however are trying increasingly to be as different from the mass merchants as possible and are generally selling much higher priced product and seldom want merchandise based upon licensed cartoon characters.

It should be pointed out that there are few stores that sell just kite merchandise–even among independent specialty stores most of the volume in kites is sold at stores that sell a wide assortment of other merchandise such as toys or other novelty items.

TARGET MARKET AND CUSTOMERS

Our target market is independent and small chain merchants that are committed to selling higher end kite products. We particularly want to focus on accounts that just sell higher end kite products and that are committed to stocking a selection of at least a dozen different kite products. These accounts we feel offer the best growth potential and will benefit the most by the help we can bring to them in selecting and displaying our higher end merchandise.

CUSTOMER NEEDS

The basic need of target retail customers is to differentiate their store from mass market stores and give customers a reason for shopping their store and paying significant premiums for their products instead of getting a low-end product at a discount department store.

These stores really appreciate stocking a line that is not sold at mass market accounts. They also appreciate dealing with an importer who is committed to specialty stores exclusively, not mass market accounts.

CUSTOMER BUYING DECISIONS

The buying decision is almost always made at an in-person sales presentation. The personal touch appears to be essential for moving buyers to action for this product because at these high end retailers are very demanding about the product quality being stocked in their stores. They insist upon seeing finished products, not just mock-ups or catalog pages. Some purchases are made at trade shows, but only a small percentage.

Sample Business Plan Format

COMPETITIVE ANALYSIS

INDUSTRY OVERVIEW

Across the US and Canada there are many firms that distribute kites. The vast majority however distribute only one or two low end kites as a very small part of their overall distribution business.

There are several distribution firms that offer between a dozen and as many as one hundred kite products. These firms represent many different products and the sale of kites represents a very small fraction of their business. These firms also to a wide variety of outlets including mass merchant accounts.

CHANGES IN THE INDUSTRY

The big change in the kite industry over the last few years has been the concentration of lower end kite sales in mass market accounts, along with a strengthening market for higher end kites in upscale specialty accounts.

Current distributors representing larger kite product lines while still selling to a wide variety of outlets, have tended to focus most of their efforts on selling lower end products to mass market type accounts–where their revenue is much greater.

OPPORTUNITIES

While the competition is well-established in, and gives a lot of focus to, current major markets for this product, they are much less aggressively pursuing the higher end kite market. This market offers terrific potential because it has significant growth potential, and the competition is not well-entrenched here. Furthermore, this market differs from the other markets in the many important ways. While this market may not be the largest, it appears a very solid opportunity for a newer competitor.

THREATS AND RISKS

Because we are a small firm, we do not anticipate a meaningful or prompt reaction to our market entrance from our larger and more established competitors. We think a strong reaction from existing distribution firms is particularly unlikely because the primary competitors derive only a very small percentage of their business from kite sales, and even that revenue is largely from mass market accounts that we plan on avoiding. However, we have developed contingency plans for certain reactions that competitors may make. If a competitor lowers their prices on the exact same product we are offering we will match their price on that product. But we intend as much as possible to emphasize products that our competitors are not selling to begin with.

STRATEGY

KEY COMPETITIVE CAPABILITIES

We are better positioned than our main competitors to take advantage of the increasing demands of upscale independent specialty stores to sharply differentiate their kite selection from those of mass merchants. Because we are going to focus exclusively on importing higher end kites for independent specialty stores we will be much better able to serve their needs than current distributors who handle many items other than kites and also give their primary attention to larger mass merchandise customers.

Tom Anderson’s extensive experience in the toy business and his solid knowledge of the kite market in North America, his personal contacts at independent retailers on the West Coast and his contacts at overseas suppliers give us a strong competitive advantage.

Nancy Anderson’s background in running offices and handling customer service issues will give us a strong service advantage.

KEY COMPETITIVE WEAKNESSES

Our primary weakness is that we are a new business competing largely against established firms. To significantly build sales, we must not just find new customers–we must take customers away from existing firms. However by offering a superior selection of kites and focusing exclusively on upscale independent stores we feel will can quickly open accounts at many retailers and build strong relationships. Co-founder Tom Anderson has had many discussions with owners and buyers at retailers that confirm this opinion.

Another disadvantage we have is stronger personal ties with accounts on the West Coast of the US and Canada than in other parts these countries. We plan on offsetting this weakness by hiring experienced commission reps for other territories. We have already had preliminary discussions with several highly successful reps and these reps have shown interest in continuing discussions with us.

Financially we do need additional funding. But after the targeted funding is in place we will have ample financing for the foreseeable future.

STRATEGY

Our strategy is to focus 100% of our efforts on the market for upscale kites. By focusing all of our effort and energy on this particular niche, we expect to quickly develop and maintain a leadership position. While other firms try to be all things to all people, we believe that our singular focus will give us significant advantages. Most of the firms serving this niche now also serve much larger markets and give only secondary attention to the upscale. On the other hand, our firm will give our total focus to this niche; our key people will stay in personal touch with customers in this niche; and we will be able to respond to changes in this market much faster than our competitors.

We will offer the best, most highly personalized service in the marketplace we serve. Especially being a very small, owner-operated company, we intend to use this to our advantage to be absolutely certain that every one of our customers receives excellent service. We will go out of our way to make sure that our customers know that they truly matter to us. For example we will carefully recommend seasonal inventory plans for each store that reflects the customer traffic that the store receives. We will also make display suggestions and to create a number of displays that can be adopted to the needs of particular stores. Sales reps and in-house employees who deal with customers will be carefully trained and will be given wide latitude for insuring that customers are always satisfied.

Sample Business Plan Template

PRODUCTS/SERVICES

PRODUCT/SERVICE DESCRIPTION

Our underlying philosophy in selecting products has been to choose lines that will bring excitement, surprise and satisfaction to demanding higher end customers. We personally test each individual product. Special attention is giving to ease of assembly, durability, and general overall attraction.

We prefer to choose lines that we can represent exclusively, but because our first priority is on representing top-of-the-line merchandise, we have agreed to take on two leading lines on a non-exclusive basis.

A complete draft copy of our first catalog detailing our initial product lines and products is available upon request.  An important component of our business is not just our products but our service. These are some of the important service elements we offer:

-Stocking of all products offered in our West Coast warehouse, avoiding long waits to fill orders from overseas

-Detailed advice on inventory planning and sales forecasting for individual stores

-Display fixtures custom built to suit the needs of our customers

-Full returnability for any product defects

-Coordination of co-operative advertising programs with manufacturers

POSITIONING OF PRODUCTS/SERVICES

We intend to position our business not just as a distributor of products, but a partner bringing a high level of service to the stores that we enter into business with.

We will work with stores through merchandise selection and display options to significantly increase the sales and profitability of their kite business. By doing this we expect to develop a strong loyalty among our customers.

Small Business Plan Format

 SALES AND MARKETING

MARKETING STRATEGY

Our basic marketing strategy is to work with our retailers on a one-to-one basis to develop unique marketing programs for them. Especially because we want to develop close working relationships with our customers we want to establish accounts in as personable a way as possible too. Hence we will overwhelmingly emphasis in-person sales calls to build accounts.

We will closely integrate all of our marketing and sales efforts to project a consistent image of our company and a consistent positioning of our products or services. We will build this image around our name “Rainbow Kites, Inc.” and will emphasize to retailers to wonderful color and excitement that a well-done display of top quality kites can add to their store.

While we will attend some trade shows and produce a color catalog, these marketing initiatives are seen as supporting, not competing with our independent sales representatives.

SALES TACTICS

Our primary sales method is face-to-face selling by independent reps A particularly important aspect of our sales process is that we will fly all of our independent reps to our West Coast office to extensively train them in how product line, in building displays, and in building a bigger kite business for our customers.

We will insist that our independent reps represent only non-competing, non-kite lines. We will stay in close phone contact with our reps in addition to having sales meetings with them at least four times per year, usually at major trade shows.

We will pay our reps on a “ledger” basis, giving them commission on all sales in their exclusive territories even if the account phoned the order in directly to our main office.

ADVERTISING

We will have a small advertising budget, devoted exclusively to trade publications designed to reach buyers and owners of upscale independent stores. The objective of our trade advertising will be limited to reinforcing the image of our company and the excitement of stocking upscale kites. All ads will be four-color and between 1/4 and 1/8 page in size. Each ad will prominently feature our logo and a bright, colorful, changing display of upscale kites.

We will also work with our retailers to obtain co-op advertising funds for their own local advertising. Currently very little co-op money is being provided by kite manufacturers, but we believe that we can make more funds available especially if we work with a US ad agency to develop effective advertising layouts and copy that our retailers could use.

PUBLICITY

Our publicity effort will be three fold. For one we will send news releases to trade magazines to try to get product or company feature coverage in front of the eyes of retailers. Second we will product a few generic press releases about kites that our retailers can use to try to obtain publicity coverage for their stores in local publications. Third we shall have a quarterly newsletter for retailers that we are currently serving or hope to be serving. We anticipate sending 1,000 copies of the news release out our first year and gradually increasing to 2,000 copies by our third year. In the newsletter we will highlight not just our products, but also display ideas and success stories of stores who increased their kite sales.

TRADE SHOWS, ET. AL.

We will have a small booth or table top display at four national conventions each year, including the National Toy Show in February in New York, The Toy and Hobby Show in April in Toronto, The International Gift Show in Las Vegas and the West Coast Toy and Gift Fair in May. We will emphasize not just our products but the custom-built displays that we are producing for retailers.

We will also provide limited funds for display space for our independent reps at regional trade shows that they attend. Typically we will pay for one table top display.

OPERATIONS

KEY PERSONNEL

The Company will be managed by the two founding partners, whose individual areas of expertise cover many of the functional aspects of the business. Tom Anderson will serve as the President of the Company, and will be responsible for Product Selection and Sales & Marketing. Nancy Anderson will be the Vice President, in charge of Administration. She will be responsible for customer service, accounting, shipping and the general administration of the business.

Tom Anderson has a long history of experience in the Toy Business and specifically in Kites. For several years he grew the Kite business at Ocean Gifts and Toys in Los Angeles into one of the largest and most profitable exciting in the country. Tom has a many industry contacts and an in-depth knowledge of the kite and toy business. See Tom’s resume for further details.

Nancy Anderson directed a staff of twelve as the manager of customer service for LA Selections, a major local jobber of novelty goods. She has also held a wide variety of other inside business and operations positions. See Nancy’s resume for further details.

ORGANIZATIONAL STRUCTURE

The organizational structure is very simple. The independent commissioned reps will report to Tom Anderson. And support staff at the office and warehouse will report to Nancy. Because Tom will frequently go on buying trips to the Far East or be on the road selling, Nancy will be able to support any day-to-day needs that the reps may have. However, even when Tom is on the road he will be in constant touch by computer or phone.

PRODUCT/SERVICE DELIVERY

In order to deliver high quality, personalized service we will carefully select all employees–especially sales reps and customer service representatives who deal directly with customers. Tom is currently interviewing candidates for sales reps; we will carefully review references not from past employers or manufacturers but from retailers whom these sales reps have served. We will also make sure that each employee understands our way of delivering quality service to each customer. We will have immediate back-up support available by phone from our office for more difficult service issues. And we will give employees enough latitude so that they can respond immediately to almost all customer requests or complaints, which in this industry usually mean granting prompt credit for damaged merchandise.

CUSTOMER SERVICE/SUPPORT

We intend to prioritize customer service and make it a key component of our marketing programs. We believe that providing our customers with what they want, when and how they want it, is the key to repeat business and to word-of-mouth advertising. Not only will we train our employees to deliver excellent service, we will give them the flexibility to respond creatively to client requests. In addition, we will continually monitor our clients’ level of satisfaction with our service through surveys and other convenient feedback opportunities.

Initially we expect to have few enough accounts so that Nancy and one additional employee can handle all customer service issues. Having just one employee to train should help insure that Nancy can help make the new hire a top performer. As our business grows we intend to hire additional customer service people one at a time and pay a premium over market labor rates to attract and retain quality help.

Shipping problems are a huge issue with the firms that we compete with largely because they insist on using surface shipping methods to keep their costs down to charge low prices to keep their mass merchant accounts happy.

We intend to use air freight to import our kites from the Far East. This will add to our costs slightly. But because all of our products are more expensive it makes more sense for us. It will also allow us to have much thinner inventories in our warehouse without risking stocking out.

Our relatively high cost of shipping has put us at a competitive disadvantage. The current cost of shipping for an average order is $…, which we feel can be reduced by …%. We intend to achieve this cost reduction by putting our overall shipping requirements out to bid.

FACILITIES

We plan to lease approximately 10,000 square feet of space as soon as our financing is finalized. We have a specific property in mind and have a tentative agreement with the landlord’s agent. This building located near LAX airport has 8,500 feet of warehouse space and a small 850 square foot office. The lease rate is $6.35 per foot triple net for a 2 year lease with the option for two additional years at an increase of 5.9% per year.

The building is located in a busy industrial neighborhood, but because we do not intend to have customers visit us we have decided we are better off with a lower-rent location, than a location that could double as a fancy showroom.

Wow !!! At last, we have concluded this article, I hope the issue of how to write a business plan has been trashed out.

This sample business plan format was originally located at www.businesstown.com/planning/creating-rainbow.asp

How to Write a Business Plan for Small Business

Do you want to learn how to write a business plan for small business? Are you in the process of starting a business or raising capital but don’t know how to write a business plan that can attract investors? Then this article is for you.

I was motivated to write this article because I realized that telling you how to develop a small business plan is just not the same as showing you exactly what needs to be included in one. I hope you know that building a business without a business plan is like flying a plane without your radar.

“A business idea is just another idea. But an idea backed by a strong feasibility, a thorough business plan and a smart team is no longer an idea. It’s now a solid business opportunity worth pursuing.” – Ajaero Tony Martins

In this article, I will be providing you with a quick nine step small business plan outline that can serve as a guide to writing a simple business plan that attracts investors. If you are ready to learn, let’s get started.

               How to Write a Business Plan for Small Business that Attract Investors

1.            The executive summary

The executive summary is what introduces your business to the reader and probably is the most important section for lending institutions. If you can’t convince an investor in the first two or three pages that you have got a good business proposal for them to listen; then just forget about trying to raise capital because your business plan is never going to produce any tangible result. The executive summary is also important as a communication tool to employees as well as any potential customers who need to understand your goals and ideas.

2.            A small section on company start up

This section of your business plan is where you have to clearly explain the thought behind the company’s creation and how you or your business associate came up with the idea to start your business. In this section of your business plan, you are expected to explain in detail the business idea, research result, location analysis, organizational structure, corporate structure and so on. You are also expected to explain the business type, industry and Business phase.

3.            Your company goal

You will have to use this section to explain in a few paragraphs, what your short and long-term goals for the company are. How fast do you think it will grow? Who will be your primary customers? Also to be included in this section is your company’s vision and business Mission statement. This is very vital and must not be ignored.

 4.            Biographies of management

This section will be used introduce your business team and what their purposes are to the business. This section should include information such as the names and backgrounds of lead members of the management team and their responsibilities. Also to be included are their area of expertise, prior achievements, their strengths and weaknesses.

        How to Write a Business Plan for Small Business that Attract Investors

5.            The product/service you will offer

This is where you will include a key piece of information about the product or service your company is offering and how it differs from the competitor’s product in the market.

6.            Your market potential

This is the section of a business plan where you need to convince the investors that you are actually targeting either a large market or a growing niche market. You will need to do some research for this section. For instance; If you are planning to open a locally based business, you need to check out the demand for your offering within a certain radius, this should be based on what you determine is a reasonable distance from your business. If you are planning to open an online or Web based business that relies on both the Internet and local traffic for revenues, you’ll need to evaluate demand on a local or a national basis. You can also seek to obtain this type of information online as many different sites will perform this analysis for you.

 7.            Your marketing plan

This is the section where you will have to ask yourself how you plan to tell the world you have something they need. For example, questions like; will I advertise in print, television, on the Web or all of these? Will I use online marketing tools like search optimization, to get your company listed on search engines and advertised on other Web sites? You will also need to include how much you plan to spend on marketing. It is important to note that your marketing plan should contain marketing strategies and tactics to outwit your competitors.

8.            A 3 – 5 year financial projection

This section of a business plan should have a summary of your expected financial forecasts, including spreadsheets showing the method that you used to reach these projections. You will also have to show your balance sheets, income statements and cash-flow projections for the entire period of that year. This section is also where you tell your investors how much money you intend raising as start up capital. The assumptions that you make in this section will make or break your company’s success. If you are unsure about using this kind of financial modeling, get a professional accountant.

9.            An exit strategy

All good business plans include a section that lays out the benchmarks you will use in deciding when to call it quit. The strategy could be based on a specific figure, revenue growth, the market’s reception to your idea, or a consensus among top officers.