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BBMM605 The Main Background Business

Project – Your Business Plan should be written for a new start-up venture; any (for-profit, notfor-profit, social, environmental, charitable) type (e.g. creator, distributor, landlord, broker of any type of asset – financial, physical, intellectual, human) and any size (small, medium, large) of business. Part 1 of your business plan should contain detailed discussions of the following:

Executive Summary. At this stage only a draft of executive summary needs to be written, but it already needs to be clearly summarized: What the business going to produce; How the business is going to deliver value for its customers and other stakeholders; Why the business will exist and Why you are starting the business; and Where the business will operate. 

Business Description. Provide name of your business and background, and briefly describe the industry your business will operate in. Explain, in sufficient details, any uniqueness or distinctive features of your business; how different your business is going to be compared to competitors; and why customers would buy from you and not from
competitors. 
Marketing Research and Analysis. Conduct extensive marketing research and analysis and identify potential target market for your products/services; trends and buying habits of customers buying similar products / services; existing competition and potential competitors; and estimated market share your business is aiming to capture.

Marketing Plan. Develop a detailed marketing plan – describe, in sufficient details, the products / services your business will offer; prices of your products / services compared to competitors, pricing strategies, discounts and loyalty rewards; place where your customers are going to buy your products and services; advertising and promotion you are going to use to promote your products / services and how much it will cost. You need to conduct some research and analysis to provide data supporting your marketing plan. 

Operations. Identify specific location where your business is going to operate and briefly describe advantages of the location; describe, in sufficient details, operational procedures of your business – how the business will operate – relate it to the business model of your business; briefly describe personnel requirements working in your business, qualification and experience that are required, wage rates; list suppliers of your business with a brief characteristics, and proximity to your suppliers. 
Management. Briefly describe management team and the key personnel of your business (qualification, skills and experience, contribution to the business); legal structure of your business; stock and employment agreements, ownership percentage of the business; division of responsibility and accountability, division of workload and

Part 2: 
Project Part 2 of your business plan should contain detailed discussions of the following:
Financial. Identify, outline, and estimate variable costs and fixed costs and the amounts.Support your estimated amounts by research you had conducted. Based on the data you had provided, estimate operational cost per month and calculate the Break-Even Point in Number of services and sales value. Consider a wage increase of 3% and overhead costs to go up by 5% due to price increases for the next year. Based on these price increases, calculate the new Break Even Point for the next year. 

Social, Environmental, Entrepreneurial (SEE). Describe the corporate governance plan for your business and explain social, environmental, and entrepreneurial component of your business – identify and discuss SEE KPIs your business is going to monitor, measure,and report to stakeholders. Describe any Intellectual Property (IP) you are developing
for the business and how you intend to protect your IPs.
Critical Risks. Discuss potential risks and any potentially unfavourable industry-wide trends destabilising the business (e.g. new entrants, price cutting by competitors,government actions, changes in consumer taste and societal demands, difficulties and unexpected problems beyond business control. 
 
Harvest Strategy. Outline and discuss a plan for a liquidity event and exit strategy; transition of leadership and succession planning; IPO or sale of the business; whether you plan to franchise, or license any of your products or services. 
Milestone Schedule. Develop a timetable or chart to demonstrate when each phase of the venture is to be completed; show the relationship and dependency of events and provide deadline for accomplishment. 

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