Chapter 13: Business Plans & Formal Reports

Chapter 13: Business Plans & Formal Reports

1. Creating Effective Business Plans

   • critical for securing financial support of any kind
   • defined as a description of a proposed company
     • explains how it expects to achieve its goals
       • marketing
       • financial
       • operational
   • will likely secure the funds it needs if it is well-written

2. components of effective business plans

   • letter of transmittal
     • explains your reasons for writing
     • provides contact information for all principals
     • describes your business idea concisely
       • includes benefits for the investor
   • executive summary
   • product or service description
     • explain what you are providing
       • how it will benefit customers
     • explain why it is better than existing products or services
     • explain why the business will be profitable
   • market analysis
     • discuss market characterisitcs, trends, and projected growth
     • describe customer behaviour, complementary products and services, and barriers to entry
     • identify your customers and how you will attract, hold, and increase your market share
     • discuss the strengths and weaknesses of direct and indirect competitors
   • operations and management
     • explain how you will run your business
       • location
   • financial analysis
     • outline a realistic start-up budget
     • present an operating budget that projects costs
     • explain how much money you have
   • appendixes

3. components of writing formal business reports

   • cover
     • made of vinyl or heavy paper binders to protect the pages and give professional look
   • title page
     • name of the report in all caps
     • receiver's name, title, and organization
     • author's name, title, and organization
     • date submitted
   • letter or memo of transmittal
     • announces topic and explains who authorized it
     • briefly describes the project and highlights report findings, conclusions, and recommendations
       • if reader is supportive
   • table of contents
     • show the beginning page number where each report heading appears in the report
     • connect page numbers and headings with dots
   • list of illustrations
     • include a list of tables, illustrations or figures
       • show the title of each and its page number
     • place on the same page as contents, if possible
   • executive summary
     • summarizes the report's purpose, findings, conclusions, and recommendations
     • gauge the length of the summary by the length of the report
     • tips for preparing an executive summary
       • look for strategic words and sentences
       • prepare an outline with headings
       • fill in your outline
       • begin with the purpose
       • follow the report sequence
       • eliminate nonneccessary details
   • introduction
     • describe the problem's background and significance
     • explain the problem motivating the report
     • clarify the significance, scope, and limitations of the report
   • body
     • discuss, analyze, interpret, and evaluate the research findings or proposed solution to the problem
     • arrange the findings in logical segments that follow your outline
     • use clear, descriptive headings that may be functional or talking headings
   • conclusions and recommendations
     • explain what the findings mean in relation to the problem
     • make enumerated recommendations, if requested
     • suggest actions for solving the problem
   • appendix(es)
     • include incidental or supporting items for readers
       • data-gathering tools like questionnaires
   • works cited or references

4. final writing tips

   • allow sufficient time to write
   • finish data collection before writing
   • work from a good outline
   • create a proper writing environment
   • use the features of your computer wisely
   • write rapidly; revise later