Introduction - Introduction To Business - ثاني ثانوي

Introduction Link to digital lesson www.ien.edu.sa The Business Plan Project reinforces and expands upon the topics covered throughout the book, helping you to put the theory into practice by following the steps to construct a business plan summary. This will equip you with a solid foundation for starting the journey of becoming an entrepreneur or small business owner. In this section, you will look at the stages of writing a business plan. We will use the example of Ali, who is creating a new app. Ali recently graduated from college and has decided to set up his own business from his home in Riyadh. He enjoys traditional Arabic coffee and, whenever he travels to cities and towns across Saudi Arabia, he searches for the best cafés. Ali has decided to create an app to help other people like him find the best coffee, wherever they are in the Kingdom. Ali wants his customers to be able to use the app to select personal preferences such as cafés with seating, free Wi-Fi access, and responsibly sourced coffee beans. He also wants to develop the functionality to reserve a table and order takeaway drinks directly from his app. Having chosen an idea for his new business, Ali now needs to consolidate it into a viable business plan. You should remember from Chapters 1-4 that the business plan will need to demonstrate that Ali has put together: The right opportunity The right resources The right people The right financing structure All within the right context. وزارة التعليم Ministry of Education 2024-1446 GE44.PATHWAYS.G02.ITB.SB.PP1.indb 291 Introduction | 291 08/05/2024 09:15

By making decisions about these key factors, you can be sure that you are dealing with the important issues, and this will help you in determining the appropriate content to include in the plan. 1. The opportunity should reflect the potential and the attractiveness of the market and industry. 2. Critical resources include not just money but also human assets (suppliers, accountants, lawyers, investors, etc.) and hard assets (accounts receivable, inventories, etc.). 3. The entrepreneurial team must possess integrity, as well as breadth and depth of experience. 4. The financing structure: how a firm is financed and how the ownership percentage is shared by the founders and investors will have a significant impact on an entrepreneur's incentive to work hard. 5. The context (or external factors) of an opportunity includes the regulatory environment, interest rates, demographic trends, inflation, and other factors that inevitably change but cannot be controlled by the entrepreneur. There is no single format to be followed in writing a business plan. However, investors usually like to see the plan in a format that is familiar to them. They are also very busy and receive many pitches. Presenting a business plan with a unique format could be very risky. 1. Cover page 2. Table of Contents 3. Executive Summary 4. Company Description 5. Industry and Competitor Analysis 6. Target market and customer analysis 7. Product/Service Plan 8. Marketing Plan 9. Operational Plan 10. Management Team 11. Critical Risks 12. Financial Plan 13. Appendix of Supporting Documents P.1 INFORMATION PROVIDED Company name, logo, tagline, contact information, copy number, and date prepared Listing of the key sections of the business plan One- to three-page overview of the significant points, intended to motivate the reader to continue reading Company objectives, the nature of the business, its primary product or service, and history (if applicable), and the legal form of organization Key characteristics of the industry, including the niche where you plan to compete The different segments, demographics, and customer requirements you are focusing on Justification for why people will buy the product or service, based on its unique features Marketing strategy, including methods of identifying and attracting customers, pricing models, sales and advertising methods, and distribution channels Operating or manufacturing methods, operating facilities (location, space, and equipment), quality- control methods, procedures to control inventory and operations, sources of supply, and purchasing procedures Description of the management team, outside investors and/or directors, and plans for recruiting and training employees Any known inherent risks in the venture How much capital the entrepreneur needs and how the money will be used (section used to attract investors) Contemplated sources of financing; any historical financial statements, if available; pro forma financial statements for three to five years, including income statements, balance sheets, cash flow statements, and cash budgets Various supplementary materials and attachments to expand the reader's understanding of the plan Business Plan Template for Ali's coffee app 292 Project | Preparing a Business Plan Ministry of Education 2024-1446