Writing an Effective
Business Plan
www.entrepreneurship.com
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Ground Floor
Ottawa, ON K1P 1J1
Tel: (613) 560-6081
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Writing an Effective Business Plan
Our Partners
The Entrepreneurship Centre and OCRI gratefully acknowledge the support and funding
provided by:
Our sponsors:
Our seminar series sponsor:

Copyright
NO PART OF THIS WORKBOOK, EXCEPT THOSE PARTS EXPRESSLY
DESIGNED TO BE COPIES FOR INDIVIDUAL USE, MAY BE PHOTOCOPIED OR
DISTRIBUTED EXCEPT WITH PRIOR WRITTEN CONSENT OF THE
ENTREPRENEURSHIP CENTRE.
Ottawa, Canada 2002

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TABLE OF CONTENTS
Introduction
4
Why Write One
5
Where to begin
6
Business Plan Research
7
Business Plan Outline
8
Executive Summary
9-11
Company Profile
12-14
Industry Overview
15-18
Service or Product
19-21
Target Market
22-25
Competitive Analysis
26-28
The Marketing Mix
29-36
Operations Suppliers
37-39
Operating Regulations
40-41
Manufacturing Plan
42-45
Human Resources
46-49
Financial Statements - Balance Sheet and Income Statement
50-51
Cash Flow Statement
52-54
Conclusion
55

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Writing an Effective Business Plan
Introduction
Workbook Objectives
• What is a Business Plan?
• Why do you need a Business Plan?
• Where to start?
• How to write a Business Plan?

• How to use the Plan?
What is it?
Business Planning is not just about
producing a report. The work of writing, of
thinking things through is as important as
Of the primary functions
the final document.
of management, planning
is the most important.
It's a tool for understanding how your
Plan your work and work
business is put together. The process will
your plan. Old...but
help you learn how to manage your own
company more effectively while you
it holds.
become an expert in your industry and
business. It creates a framework for you to
Grant Hooker,
start and grow your business.
Beavertails Pastry
The Business Plan is dynamic. Each
business and its personality are different and
the Business Plan should reflect this.
4

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Writing an Effective Business Plan
Why Write One
Every time you
write a Business
Plan you
Plots a course
become a better
• It helps you think long term - about the big
businessperson.
picture, not just about starting a business but
staying in business.
• It assists in keeping you motivated.

Feasibility study
• Is your idea viable?
• Is your business going to be profitable?
• Will you require outside financing to start or
operate this business?
• What are your barriers to success?
Starting a business
without a Business Plan is
Become a better decision maker
like driving from
• It will help you anticipate problems.
downtown Ottawa to
• Gathering information for your plan will
increase your knowledge of the industry thereby
downtown Toronto without
assisting you in making more informed
a map. Chances are you'll
decisions.
make it, but with
• Your plan provides an organized way to
guidelines the trip will be
conduct your investigation.
shorter and much more
pleasant.
Reality Check
• Your plan raises questions that will help
Angela Sutcliffe,
inspire solutions before a crisis occurs.
President,
• It helps you to know what will be required of
Mrs. Mop
you as an entrepreneur.
• By identifying strengths and weaknesses, it
reveals where you will need assistance.
Implementation plan
• Use the Business Plan as a guide to keep you
focused and making progress during the
business start up phase.
Selling tool
• Use the Business Plan to sell your business
opportunity to potential investors, employees
5
and suppliers.

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Writing an Effective Business Plan
You can begin
Where to begin
your Business
Plan at your local
1. View Samples
Small Business
Centre.
• The Business Plan Handbook
• Interactive Business Planner
(www.cbsc.org/ibp)

• On line Business Plan samples
(www.bplans.com)
• Chartered bank templates
(www.royalbank.com)
2. Define objectives and potential readers and
determine your Action Plan.
The Entrepreneurship
3. Prepare a time line.
Centre's Resource Centre
in Ottawa has much of
4. Begin to gather research information.
what you need to fully
5. Organize research into business plan
research and develop your
components.
business idea.
6. Write the plan.
Our experienced
consultants have helped
• Know your audience
1000s of entrepreneurs
• Use clear vocabulary
• Avoid jargon
with specific questions
• Clearly identify sections
and have provided
• Quality vs. Quantity
direction when needed.
• Know your plan
7. Get help where required.
Stephen Daze,
Director,
The Entrepreneurship
Centre, Ottawa
6

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Writing an Effective Business Plan
Business Plan
Read and photocopy
your research - then
Research
build your own
research library.
Business Plan research helps you make informed
decisions and develop new knowledge and direction.
What is it?

Business Plan research is the systematic gathering,
recording and analysing of information about
problems and opportunities relating to the operations
of your business.
Where do I conduct my
Let research define your
research?
products and write your
ads, brochures, and web
A. Secondary Data
site. It's the best
• Associations (Associations Canada)
investment you'll make.
• Networking (BNI, Home Based Business
Association, OCRI)
Don Hewson,
• Newspapers, Magazines, Periodicals
Hewson Bridge and
(Micromedia Voyageur database)
Smith Ltd.
• The Internet - Industry Canada
(strategis.gc.ca)
• Statistics Canada (www.statcan.ca)
• Directories (Scott's, Frasers, Ontario Business
Directory)
• Economic Development Departments (Blue
Pages, Ottawa Economic Development)
B. Primary Data
• Questionnaire/Survey - telephone, mail, e-
mail, personal
• Focus Groups
• Product or Service Sampling
• Books
Market Research Made Easy
Successful Market Research
7

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Writing an Effective Business Plan
Business Plan Outline
There are many different Business Plan formats. The
layout may vary depending on the type of the business,
the purpose of the plan and the readership. The
following format can be amended to meet the needs of
your business.
1. Table of contents
2. Executive Summary
3. Company Profile
4. Marketing Plan
• Industry Trends
• Product/Service
• Target Market
• Competitive Analysis
• Marketing Mix P Promotion
P Place
P Price
P Product
5. Operational Plan
• Suppliers
• Manufacturing Plans
• Operating Requirements
• Human Resources
6. Financial Plan
• Start up Costs
• Cash Flow Statement
• Income Statement
• Balance Sheet
7. Appendix
8

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Writing an Effective Business Plan
Executive Summary
What is it?
• This is a concise summary of the business
opportunity, however it covers all important
components of the plan.

• As a future-oriented, two-page document, it
demonstrates your knowledge of the business
opportunity and proves that any investment in
the venture will yield a good return.
Why is this information
Finish this section of
important?
your plan last
• It is important to develop a concise
description of your business to capture the
interest and support of the reader. The readers
may include partners, potential investors,
lenders or regulatory agencies.
• An investor may read the executive summary
to decide if they should read the remainder of
the plan. It must create excitement to entice the
reader to continue reading.
Where do I conduct my
research?
• Your summary is supported by documentation
from the main body of your Business Plan.
• The executive summary should not introduce
information that is not reinforced in other
sections of the plan.
9

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Writing an Effective Business Plan
Executive Summary
What do I include?
Introduction to your business opportunity
MARKETING HIGHLIGHTS
Product/service distinctive features
Target market summary
Competitive analysis
Key marketing strategies
10

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Document Outline

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