Two files attached. Business plan is about a Daycare.
Part 3
Strategy - Think of this statement as an action plan for how you will get customers to buy your products. It will support the tactics you describe later on in this section. Your strategy may be only a few sentences in length, or it can be a couple of paragraphs. Important elements for a sales and marketing strategy include who you are targeting with your initial push and what customers you have designated for follow-up phases.
Method of Sales - Describe available distribution channels and how you plan to use them. Many entrepreneurs fail to give adequate thought to method of sales. How you get the products to the end user - your method of distribution and sales - is one of the most important elements of your plan. In this section you demonstrate the ability and knowledge to get your products into the hands of your target customers. You must also explain your plan for reaching your distribution channels. Will you be selling directly to your customers? Will you be using sales representatives, distributors, or brokers? Do you plan to have a direct sales force in place?
Advertising and Promotion - Your advertising and promotion campaign is how you communicate information about your product or service. This section should include a description of all advertising vehicles you plan to use -newspapers, magazines, radio & TV, Yellow Pages, etc. - as well as your public relations program, sales/promotional materials (such as brochures and product sheets), package design, trade show efforts, and the like. Each business must select at least two advertising medias, one public relations program, and one community promotion program. Each group must create an advertisement for each media selected. Unique product packaging is also a key promotional tactic. You probably will want to discuss the benefits of your package design, and include a sample in your business plan.
Location and/or Distribution Channels - Choose the Location of Your Business Wisely - Whether you have a service, manufacturing, or retail business, selecting the location for your business will be one of the most important decisions you make. A good location can offset other errors in judgment, but a poor location will kill even the best business idea. Therefore, the real reason to analyze the location of your business thoroughly is not for the business plan but for the success of your business. The important considerations that should go into the selection of an appropriate site for your business are traffic patterns and flow, competition, your customer profile, costs, barriers and access, and expansion potential. If you are not going to have a physical location, then you must consider how will your product/service will be distributed to the ultimate consumer.
Financial's
Expenses - These are the costs that are necessary to operate the business (does not include cost of goods sold). By creating a financial form called Operating Expenses, you pull together the expenses incurred in running your business. Expense categories include: marketing, sales, and overhead. Overhead includes fixed expenses such as administrative costs, rent, and other expenses that remain constant regardless of how much business your company does. Overhead also includes variable expenses, such as travel, equipment leases, and supplies, and labor, which fluctuate based on how much business your company does.
Capital Requirements - Offer details as to the amount of money you will need to procure the equipment used to start up and continue operations of your business. To determine your capital requirements, think about anything in your business that will require capital. For a diaper delivery service this might be a van, washing machines and dryers, irons and ironing boards, and supplies. A restaurant may require stoves, tables, chairs, silverware, pans, etc.
Overall financial requirements for the business in order to be able to safely operate for the first 12 months. You will need to provide your rationale for how the funds will be used over that twelve month period.
Executive Summary - The executive summary is what most readers will go to first. If it is not good, it may be the last thing they read about your company. Lenders in particular read executive summaries before looking at the rest of a plan to determine whether or not they want to learn more about a business. Other readers will also go first to your executive summary to get a snapshot of your business and to gage your professionalism and the viability of your business. Your goal in this section is to generate enough interest to make someone want to read further for more details. This section should answer briefly the basic questions as to what, how, when, where and why. The executive summary should be no more than three pages and should include highlights of the other sections of your plan. For this reason, it is often easier to write this section last.
