Accounting and Finance Foundations

Unit 12

Accounting and Finance Foundations Unit 12: Budgeting and Business Plans 940

n When did (or will) your business open?

n Who are the founders?

n Where is your business located?

n What are your operating days and hours?

n What successes has your business achieved so far?

• If you are a start-up business, why do you think you will be successful?

n What resources does your business have available for achieving its goals?

n What is special or unique about your business?

n What is your vision for the future of the business?

Industry Analysis

The industry analysis describes the larger industry to which the business belongs. It discusses the gen-

eral outlook for the industry, trends in the industry, and key players in the industry. If there are any pos-

sible barriers that could prevent the business from successfully entering the market, those should also be

mentioned. In essence, the industry analysis should indicate that the owners understand and are aware of

external business conditions.

Target Market

This component of the business plan identifies the business’s target market in specific terms. It defines

the target market’s key characteristics and trends and identifies key customers (or customer groups). The

target market section should also provide evidence of customer interest and explain how the business’s

product uniquely meets the customers’ need(s).

Competitive Analysis

At this point in the business plan, it’s important to examine how competitors’ activities compare to those

of the business. The competitive analysis should include a realistic, factual analysis of the business’s

competition. It should identify competing companies’ strengths and weaknesses, as well as the business’s

strengths and weaknesses relative to those of competitors. It should also point out the advantages that the

business’s goods/services have over the competition.

Marketing Plan and Sales Strategy

The marketing plan, including the business’s sales strategy, should detail a clear, goal-attaining method—

with well-defined steps—for marketing and selling the business’s product or service. It explains the role of

advertising, direct mail, and public relations in effectively communicating with potential and current cus-

tomers. This section also explains the type of sales force that the business plans to have, how it intends to

train its sales force, and how it plans to carry out its sales strategy.

Budgeting and Business Plans Student Guide

Chapter 29

Company Profile/Description (cont’d)