KANSAS HIGH SCHOOL BUSINESS PLAN COMPETITION
Business Plan Template
KTEC's business plan competition
will accept any business plan format.
The purpose of this template is to provide
a basic framework for you to use in creating your business
plan. Not every business plan will use every part of
the framework. When a section does not seem related
to your plan, you should spend some time to think about
each issue and how it may apply. For each of these areas
that you do address, you should be concise with your
answer. Many of these sections can be answered in a
few sentences; the longest should only require a few
paragraphs. If your answers are longer than that, first
make sure that you are not detailing something that
is asked in a different area; then go back and make
sure the main idea for that section is clear.
Once you have completed the framework of the business plan, organize your plan so that it makes sense to the reader. The framework provided is only one of numerous options. If you find that another style makes more sense for your plan, you may use it. There is no right way to write the business plan, however, it must be organized logically so the reader can see the connection among the areas discussed.
Remember that the business plan is how you are communicating your vision of your company to someone who has no previous exposure to this idea. The key here is being able to clearly and concisely translate what you know is a good idea into words that will motivate the reader to believe in the idea. The way the idea is presented on paper is as important as the idea itself.
As in the real world, grammar, spelling, neatness and overall presentation are very important.
THERE IS A 15 PAGE LIMIT FOR THE BUSINESS PLAN
PLUS UP TO 5 PAGES FOR FINANCIAL WORKSHEETS OR APPENDICES
Font size must be at least 10 pt Times New Roman
Student Business Plan Template - Outline
I. Introductory Elements
a. Title Page
b. Table of Contents
c. Executive Summary
1. Business idea
2. Goals and objectives
3. Market opportunities
4. Economics and profitability.
II. Description of Business and Product
a. Vision and Mission Statement
b. Business Description
1. Legal Structure - explain choice
c. Description of Product or Service
III. Evaluation of Market Opportunity
a. Market Size and Trends
b. Customers - segment by importance
to your business
c. Competition - names, advantages
& disadvantages
d. Market Share e. Differentiation/Uniqueness - strengths,
weaknesses, opportunities & threats
f. Risks
IV. Sales and Marketing Strategy
a. Marketing Strategy
1. Product - What problem does this
product solve?
2. Price - How much will be charged and why? Competitor
price comparison.
3. Promotion - How will this product be presented
to consumers?
4. Place - Where will product be sold; distribution;
middlemen?
b. Customer Service and Warranties
c. Strategic Partnerships
V. Description of Development and Production
a. Development of Product
1. Who will Develop Product
2. Milestones
3. Patents and Intellectual Property
b. Production Process
1. Internal Production or Outsourcing
2. Milestones
3. Suppliers
c. Labor Requirements
1. Skills needed - education &
training
d. Future Product Development
VI. Management and Operations Plan
a. Management Description
1. Team Member Bios / Skills
2. Mentors for Team
3. Additional Skills Needed
b. Support Services
c. Ownership / Board of Directors / Advisors
VII. Financials WORKSHEET SECTION
a. Initial Computations
1. Economics of one Unit
2. Fixed and Variable Costs
3. Break Even Analysis
4. Start Up Costs
b. Financial Statements
1. Balance Sheet (3 Year)
2. Income Statement (3 Year)
3. Cash Flow Statement (3 Year)
c. Financial Ratios
1. Return on Investment
2. Payback Period
3. Profit Margin
d. Assumptions for Financial Statements & Support
1. Start-up costs
2. Cost of One Unit
3. Monthly Expenses
4. Estimated Sales
5. Balance Sheet
VIII. Optional Appendices
a. Timeline for Business
b. Sample ads; product drawings; prototypes
Student Business Plan Template - Explanation
The quality of a completed business plan ultimately depends on the quality of the underlying business concept. Clear writing gives credibility to the ideas presented in a business plan. Factual support must be supplied for any claims or promises made. When promising to provide superior service or explaining the attractiveness of the market, for example, the entrepreneur must include strong supporting evidence. In short, the plan must be believable.
The following information should be included in each teams business plan:
I. Introductory Elements
Title Page: The title page is the first page of the business plan and should contain the following information:
• |
Company name, address, phone number, fax number, and web address |
• |
Company logo, if available |
• |
Names, titles, addresses, and phone numbers of the owners and key executives |
• |
Date on which the business plan was issued |
Table of Contents: The table of contents provides a sequential listing of the sections of the plan, with page numbers.
Executive Summary (1 Page): The executive summary is crucial for getting the attention of the one-minute investor. This should include a concise description of the product or service and the business opportunity and market need to be fulfilled. There should also be a brief description of the firm’s competitive advantage and an analysis of the competitive environment.
II. Description of Business and Product
Vision and Mission Statement: The firm’s mission statement concisely describes the intended strategy and business philosophy for making the entrepreneur’s vision a reality. In just a few sentences, it should convey how combined efforts in all areas of the business will move it toward its goal. In addition, it should distinguish the firm from all others.
Business Description: The main body of the business plan begins with a brief description of the firm. This section informs the reader of the type of business being proposed, the firm’s objectives, where the firm is located, and whether it will serve a local or international market. The business description should include a statement indicating what type of legal structure the business will have (partnership, corporation) and why that structure was chosen.
Description of Product and/or Services: This section discusses those products and/or services to be offered to the firm’s customers. If a new or unique physical product is to be offered, a sketch or drawing of it should be included in the appendix of the business plan.
III. Evaluation of Market Opportunity
Market Size and Trends: The market size is the number of people that are likely to need your product or service. This should identify all people who use this type of product currently. Market trends refer to the number of people who are likely to use it in the future. This should describe whether the market is growing or declining.
Customers: The customers section talks about not only how many customers that exist, but also talks about things like their lifestyle and demographics. Identify if certain types of customers are more or less likely to use your product.
Competition: Who are your competitors in the marketplace, and what do they charge for their product? Describe their characteristics and their strengths and weaknesses. Identify their market share and where you fit related to their products. If no one else is a competitor currently, describe how you will respond to future competitors.
Market Share: Discuss your place in the market. How much of the market will you be able to get, and what reactions will the market have to your entrance?
Differentiation/Uniqueness: What is different
or unique about your product that will make customers
purchase it instead of other products? Discuss strengths,
waeknesses, opportunities & threats.
Risks: No venture is guaranteed; there is always a chance of failure. What are the risks that your business could potentially fail? There is no penalty to admit weaknesses here, if you can identify a problem, you are that much closer to overcoming it.
IV. Sales and Marketing Strategy
Marketing Strategy: The marketing strategy
is one of the most important features of the business
plan. Marketing is generally broken down into four factors,
known as the four P's: Product, Price, Promotion and
Place. Product is the description of the product itself:
what it is, does, and why the consumer will want it.
Price is to detail how the product will be priced in
comparison with competitors and substitutes. Promotion
deals with how you will make your product known to potential
customers, things like advertising, events and media
coverage. Place deals with where you will sell the product
and also how you will get it there.
Customer Service and Warranties: Customer
service is the way that you respond to your customer
before, during and after the sale. The business plan
should describe how you intend to communicate and follow
through with your customer services goals. Warranties
should also be covered. You should discuss how long
you intend to cover the product and how the customer
can utilize the warranty service.
Strategic Partnerships: This section discusses
possibilities for alliances with other companies or
groups that will benefit your business. These alliances
can be with related products, like Compaq computers
and Microsoft, or can be between seemingly unrelated
products, like Burger King and Disney Films.
V. Description of Development and Production
Development of Product: This section will discuss how you will take the idea from concept to market stage. If it is a service, describe what will need to be done to prepare the service. If a product, you should describe what stage the development is currently in and what needs to be done to have a completely developed product. Describe what milestones you will use to measure progress towards the final stages, how you will know when you are passing a particular milestone, and time frames for each. If the idea is one that is unique, how will you protect your idea from other people taking it? Discuss whether it is a process that requires protection from a patent, copyright or trademark.
Production Process: This should examine how you intend to make the product. Show reasons why producing internally or having someone else produce the product would be the best option. Discuss how you will use milestones to measure the production process. Describe how you will get the materials that will be needed for production. If dealing with a service, this section should detail what the available time to perform certain tasks is, and how human resources will be allocated when there are multiple demands for time.
Labor Requirements: How many hours will be required to make the product or perform the service? How many people will be required to perform the process, and how many will be needed for support activities? What special skills will be required to produce the product or service, and will special training to have people with those skills available?
Future Product Development: Look forward to see what the future will hold for your business. Most products and services change over time. Discuss what changes are likely to take place and what ways that you will adjust to those changes. What are potential upgrades that may make the business stronger against future competition?
VI. Management and Operations Plan
Management Description: The management plan must detail the proposed firm’s organizational structure and the backgrounds of those who will fill its key positions. Include biographies of each team member and what skills that they can use to help the team. Biographic information on the mentor should also be included. Jobs that the team members will assume in the company should be included. If there are gaps in the skills provided by the team and mentors, a listing of additional skills that the company needs should be included.
Support Services: Very few start-up small businesses can do everything themselves. Identify the areas that you will need to hire people to assist in. This could include skills like an advertising agency or accounting firm.
Ownership / Board of Directors / Advisors: This should list who the owners of the company are. Specify who are the people that will help to guide the company, such as the board of directors and advisors. (For the purpose of this competition, the people listed here do not have to be involved with the business plan team, but think about the types of people that you would want to have involved if you actually had an operating company, give them titles and describe why they would be helpful to the company.)
VII. Financials WORKSHEET SECTION
Initial Computations: The cost to produce a unit of a good is a combination of fixed costs and variable costs. The economics of one unit is an exercise to determine the gross profit of a product in production. The break even point is where the production of units covers both the fixed and variable costs and profit is first realized. Start up costs are one time expenses that will arise when you begin your company.
Financial Statements: The financial statements are the way that you can show the health of the company. The three statements here: Balance Sheet, Income Statement and Cash Flow are the three most prevalent examples in businesses around the world. These are just to be basic versions of the statements and only need to reflect yearly totals for three years. Keep in mind that your revenues and profits will be lower in the first year and grow over time.
Financial Ratios: Financial Ratios are another way to check the health of a company. There are many more ratios than what you are required to do here, but these give you an idea of what they are all about. Return on investment gives a guide about how well the money that is invested in the company is performing. Payback period tells the investor how long it will take the company to return their money. The profit margin shows how much each item adds to the bottom line.
Assumptions for Financial Statements and Support: Here you need to explain why you used the numbers that you did in the above exercises. There needs to be a reason why you used the numbers and some support. It is not enough to say that you will sell a certain amount of product and generate so many dollars. Show why you feel that these numbers are possible and where you found that information.
VIII. Optional Appendices
Timeline for Business: Show a timeline that walks the business plan reader through what is happening for your business. This will help the reader to better understand what the progression of events is; it may also help you in constructing your business plan.
Sample Ads, Product Drawings, Prototypes: This section is for you to include any things that you might feel help showcase your idea.
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Using the template shown above, scoring
among judges will be more efficient and accurate based
on the pre-determined objectives.
Please make sure that the plan is neat, concise, and well proofread.
Sections 1 - 6 should total no more than
15 pages in length. Please use 10 point or larger font.
Five copies of each plan should be sent to:
KTEC Business Plan Competition
214 S.W. 6th St. 1st. Floor
Topeka, KS 66603-3719 |
