Professional Documents
Culture Documents
Publisher:
Books on Demand GmbH
Norderstedt
Editors:
Andrea Mayer
Andreas Hutmacher
Charly Suter
credit-suisse.com/businesseasy
2016 edition
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Foreword 5
1 Introduction
1.1 What is a business plan? 7
1.2 Why do you need a business plan? 8
1.3 Structure and form of a business plan 9
List of graphics 54
Checklist 55
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Foreword
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1 Introduction
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1.1
What is a business plan?
A business plan is especially useful if the Writing a business plan compels Goals of a business plan
company is about to take an important management to clearly present its A business plan:
step in its development, whether plans and goals. The business plan reviews a project or a business idea
this is the founding of a business, also allows management to show and shows its feasibility;
the introduction of a new product, prospective business partners or provides the basis for decision-making
expansion abroad, the acquisition of future members of management for future business partners;
another company, or the creation of a the opportunities and risks of the helps present business ideas
succession plan. In these and similar proposed business strategy. It creates effectively.
cases, it is crucial to show, with the transparency regarding the solutions
help of a business plan, that there is for meeting real customer needs and
an opportunity for future success. This thus promotes trust in your company.
requires a precise market assessment Together with good management, it
and planning of the companys activities. forms the basis for long-term above-
average returns for the company. The
business plan is therefore important as
an acquisition and negotiating document.
In these cases, companies are Intended use of a business plan Request for credit or lease financing
often dependent on the support Looking for investors/strengthening Most banks today are no longer
of partners. the equity capital base satisfied with historical balance sheets
Whether its a request for financing, In order to implement future-oriented and income statements when making
a mandate for sales negotiations, or strategies, your company is looking credit decisions. Instead, they now
corporate consulting, the business plan for new shareholders. These investors increasingly focus on a companys
is an important document when dealing always ask for a business plan. They use economic prospects. While banks
with prospective business partners. With it to review the projects in terms of the do not always require a business
a financing request, especially equity business idea and market opportunities. plan, this document helps present
financing, the business plan is usually a your company or your project quickly,
prerequisite for evaluating your business Mergers, acquisitions, succession comprehensively, and in a simple
idea. Investors who provide your planning, and the sale of companies manner. A business plan is essential
company with a considerable amount of If you plan to sell your company, the when establishing a new company.
capital and are therefore willing to bear business plan will help you present
a portion of the entrepreneurial risk have your company in a transparent manner. A business plan can be used for many
to be given comprehensive information. Potential buyers will take a closer other purposes, such as acquiring
This need has to be taken into account. look at those companies that they new customers, attracting new
believe are healthy and that can be management, succession planning, etc.
integrated successfully. Conversely,
when purchasing a company, you
demonstrate a policy of openness
to the management team of the
potential acquisition by letting them
have a look at your own company.
Before you turn to the individual Abide by the rule Dont make me Attachments, such as balance
sections, you should first note some think when you are writing write sheets and analyses, the rsums of
basic rules on content and form as concisely as possible, but always members of management, newspaper
when writing a business plan. in a manner that ensures the reader articles, prospectuses for the company
will not be left with any unanswered or products, letters from customers/
Basic rules on content questions. suppliers, etc. are best included in
Keep your business plan short, theappendix.
precise, and clear. The use of Basic rules about form Practical structure: In practice, the
technical expressions should be Avoid a loose-leaf book. The format included in the checklist (see
reduced to the minimum necessary or business plan should be bound or the end of this guide) and in the
explained in a footnote. The business stapled. following section Format and contents
plan should not be more than 20 to 30 Provide the name, address, and of the business plan have proven to
pages long. telephone number of the company be effective.
Make a clear distinction in your and the name of the main person
statements between facts and plans. responsible on the title page. If you
Always address negative topics, as want to distribute the business plan to
well. Justify your assumptions about various investors, it is a good idea to
the future. If you use third-party number and personalize the individual
sources, quote them with information copies.
about their origin. Do not forget to include a table of
A business plan should not be contents, which should be divided by
artificially inflated, but should instead individual sections. Use page numbers.
focus on what is important. Additional This will enable readers to find
and background information should information that interests them more
therefore be included in an appendix. quickly.
Corresponding references to the
appendix are made in the body of
thetext.
Location/administration
Location: Where is your company
headquartered? Are there other
locations? What advantages/
disadvantages and development
opportunities do the selected locations
offer? Administration: Your corporate
activities also have to function in the
administrative area. Show how you plan
to organize the administrative area.
There is more than one way to write Questions about the project Then answer these questions in
a business plan. Opinions differ What is our business idea? simple, short sentences. Only
as to how and when the summary In what area does the company operate include the most important points
should be written. We would like to and what are the market services? in the summary. Do not write solely
present one method here that has How do we want to sell the market on matters about which you are
been proven effective. Formulate services? enthusiastic, but also include questions
questions on the key aspects of How great is the market growth that might interest future partners.
your project at the beginning of potential?
the task using the business plans Who are the managers? What experience The initial version of the management
do they have?
structural outline. This may include, summary will serve as a basis for the
for example, the following questions: Why do we believe we will be detailed plan. After completing all of the
successful?
sections of the business plan, revise
How great is the financing requirement?
What do we need additional capital for?
the summary, taking account of new
On what terms (premium, voting rights, understandings. Make reference in the
options, etc.) are we prepared to cede revised summary to the corresponding
votes and capital?
sections of your business plan.
2.2.1 Company
Presenting the initial situation
clearly creates transparency.
In this section, you describe the development of the
company from its founding to its current form. You explain
the structures and describe the business environment.
Depending on the level of development and the companys
financing environment, the initial situation may be different
and may require somewhat different information.
General
History Current situation
When was the company founded and What is the companys legal structure,
what was the original business goal? and what companies does it have
financial and personal ties with?
Who were the founders and what was
their contribution to the companys What is the shareholder structure? Are
success? there shareholder agreements?
How did the company perform? Did Facts and figures (development of the
the strategy change? If so, why was it key figures) to date sales, profits,
changed? development of cash flow, number of
employees, number of facilities or points
What were your companys greatest
of sale, etc.
successes and failures?
What are the current companys
strengths and weaknesses?
Sales/assets
Company development
Sales/assets
What makes you capable of realizing this idea?
Have you spoken with business people in this area before? What did you learn
from this?
Expansion financing
Founding Expansion Acquisition Turnaround
Why do you think this development step is necessary? Expansion
What strategic goals are you pursuing by expanding your business activities?
How did the capital structure develop, and what is your forecast for the planned
Sales/assets
capital structure?
Why cant you finance this development step on your own?
Acquisition financing
Founding Expansion Acquisition Turnaround Succession
Turnaround financing
Founding Expansion Acquisition Turnaround Succession
What is the background situation, and what are the problems? Turnaround
planning
marketing,etc.)?
How does management plan to operate the company more profitably inthefuture?
Company development
Succession financing
Why is the current owner planning to sell? Succession
What companies are being bought and what options are still available? planning
Founding Expansion Acquisition Turnaround Succession
planning
What qualifies the current management team to take this step?
What support does management expect from the current owner?
Sales/assets
Company development
Many companies invest resources Picture the market universe as a vast Vision
and financial means into projects that realm divided into different parts. One Developing a mission statement is one
allow them to achieve greater market part represents the industries that way to share your vision with others.
share. They try as hard as they can to already exist. The familiar rules of Focus on answering the following
challenge their competitors for market competition and competitive strategy questions:
share because they believe this is the apply to them. Each company has to
only way they can grow. This approach fish in this market, which becomes
is called market penetration. Indeed, more and more difficult. But there is Whom does your company serve?
for years it was thought that corporate another part the one that consists of Where do we see the company
strategies mainly achieved one thing: the sectors and markets that do not intenyears?
securing a greater portion of existing yet exist. It may still be a long way off, What do we do?
demand. No wonder this type of but it is highly profitable. Redevelop Why do we do it?
strategy is permeated by countless and create your own new market. How do we do it?
military terms. But this approach This is called market development.
What success do we anticipate?
also means that margins shrink,
markets become more fragmented,
and competition more destructive. Reading tip
By focusing on price discounts and
battles for market share, companies Business Model Generation:
A Handbook for Visionaries, Game
no longer dedicate themselves to their
Changers, and Challengers
primary task which is to create new Authors: Alexander Osterwalder and Yves
markets through innovation. But that Pigneur
is exactly where the focus should be. ISBN-13: 978-0470876411
www.strategyzer.com
Products and services Benefits of our products and Do you know the needs of your
customers including future customers?
What products and services do we offer? services for satisfying customer
needs How do you intend to meet these needs?
What do they look like in detail?
What benefits do they give customers? An analysis of customer needs and the
The following graphic (page 22) shows,
customer benefits of your market service
in a very simplified form, the market
will help you recognize how your offering
Product portfolio services of a recruitment firm in terms of
is meeting demand. All too often the
How do you position your products and
customer benefits and customer needs.
services and products that are offered
services on the market?
have no market, or there is too little
What price segment of the market are demand in a special market segment. Reading tip
you in?
What quality standards do you offer? Are Value Proposition Design:
these certified? How to Create Products and Services
What additional benefits (service, Customers Want
maintenance, or training) do you offer? Authors: Alexander Osterwalder, Yves
Pigneur et al.
ISBN-13: 978-1118968055
Status in the product life cycle www.strategyzer.com
What phase of the product life cycle are
your products and services in?
Launch
Growth
Saturation
Maturity
Decline
Our market services What customer benefits Do these benefits meet a clear
(products,services) doweprovide? customer need?
Procurement of sales staff Filling staffing gaps Dried-up labor market hinders company
(permanent and temporary) development
Targeted search requests on the basis Optimal staffing through targeted searches Avoiding costly hiring mistakes
ofamandate
Human resources management consulting Optimal employee performance, employee Employees are a companys most important
promotion, employee satisfaction capital. Human resources management at SMEs
is not highly developed.
Career consulting Optimal utilization of potential Discrete and professional placement
forjobseekers
Business plan attachments Business plan attachments Business plan attachments
Company brochure References Extracts from market studies (e.g. from
Mission statement Examples of agreements that magazines, publicly accessible statistics)
Fee structure have been concluded Statement of orders on hand
General Terms and Conditions Cost-benefit considerations, etc. Customer requests, etc.
Plans, etc.
What are the market gaps (needs that are How do you rate the opportunities/risks
not met or are poorly met)? for future success?
Threat from
substitute products
Determinants of supplier power Determinants of customer power
Differentiation of inputs Bargaining power
Switching costs of suppliers and companies Customer concentration versus
Substitute products
in the sector company concentration
Supplier concentration Customer volume
Importance of order volume for suppliers Conversion costs for customers
Costs relative to total purchases in the industry compared to those for companies
Impact of inputs on costs or differentiation Determinants of the threat Level of customer information
Threat of forward integration compared of substitute products Capacity for backward integration
to the threat of backward integration by Relative price performance Substitute products
companies in the industry of substitute products Staying power
Switching costs
Customer inclination to substitutes Price sensitivity
Price/total sales
Product differences
Market identity
Impact on quality and performance
Customer gains
Decision-makers incentives
Marketing deals with two questions How can your company meet customer How will customers learn about the
needs through suitable products or advantages of your product or service
inparticular: services? What features does your (advertising/communication)? Only
market service have to include in order through a positive image of your offering
for you to sell these products or services and your company will you be able to
What is the benefit for the customer? successfully? Does your offering provide form a trusting and lasting relationship.
What is the benefit for the company? a solution that meets market needs in
How and in what form will you allow
terms of products, design, packaging,
customers to have a say in designing
additional services, etc.?
your products or services? If you engage
What market conditions (customers, in a regular and active dialog with current
Market-driven planning competition) are you confronted with? and potential customers, the likelihood
Do you set yourself apart from the that you will produce products that are
Your goal is to structure and offer your competition because your product or appreciated, in demand, and purchased
products and services in a customer- service is different (better, cheaper) than in the free market will rise. In addition,
focused manner. This is where your competitors products or services? this will have the positive side- effect that
satisfied customers will not only become
marketing comes into play, enabling What price do you consider to be
repeat purchasers, but also that they will
appropriate for your market service?
you to develop and market successful What price are your customers prepared
become brand ambassadors for you and
products and services. In addition, it will actively recommend your product.
to pay?
help you position your company in the How do you want to reach your
market correctly and respond to market customers with your offering (distribution/
opportunities that arise. You document sales)? Make the product quickly
and easily accessible to customers.
the results of market-driven planning in Complicated and indirect paths are not
the marketing plan, which answers the the way to motivate customers to buy.
following questions: Where do you want to offer customers
your product, and how will it get there?
Correspondingly, you must select a
location for the offering and ensure
logistical availability (distribution).
Strategic advantage
Following are some of the key Capacities and bottlenecks Raw materials markets
aspects that you should address What production capacities do you have? What are the delivery times?
in your business plan: How do you bridge short-term lack of What raw materials do you depend on?
capacity?
Where do you obtain these raw
Production resources What future investments for maintaining materials?
and expanding capacity will you be
What production facilities will you use Who are your most important raw
required to make?
and what does your infrastructure look material suppliers?
like? Key suppliers How do you hedge against the fluctuating
How many people do you employ in prices of raw materials?
Who are your key suppliers?
production and what level of training
dothey have? How long are the delivery times?
What is your inventory policy, and how How do you ensure the quality of the
iscompliance with it controlled? purchased products?
What agreements do you have with
Production technology suppliers (e.g. purchase agreements)?
What production methods will be used
(production process, production steps
and levels, lead and delivery times)?
What special expertise do you have?
Are there dependencies with individual
key people?
How will you assure quality, and how will
you control it?
What future technical developments do
you anticipate in your company (cost and
productivity improvements, etc.)?
Technology development
activities
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Do you have photos of current locations Company domicile Expansion and development
or virtual plans of new locations? Where is your company headquartered? opportunities
Include these in the appendix of your Where does it have other legal What expansion opportunities does the
addresses? current choice of location offer your
business plan. The combination of text
Are the operating facilities rented, or are company?
and images will make a longer-lasting
they your own property? Are additional locations planned?
impression on your readers.
Location advantages and disadvantages What criteria do you use in searching for
with respect to: a location, and how do you weight them?
Customer proximity
Suppliers
Transport connections Administration
Political conditions
Labor market, availability of How is your administrative area
qualified employees structured? What services are available?
Cost structure How is your accounting organized?
Wage structure
Economic development programs What resources and office capacities are
available?
What is the ratio of production and sales-
Taxes oriented employees to administrative
What is the annual tax burden at the employees?
location?
What does the tax planning look like?
Is there tax relief for economic
development?
Security
Do your employees have suitable
knowledge and experience for working
confidently with ICT applications?
How dependent is your company on
functioning ICT (production, delivery,
andprocurement, etc.)?
Do you have an ICT security plan (data
security, data protection, protection
against viruses/hackers, etc.)?
Investors focus heavily on the If your company benefits from external Management team
management skills and capabilities of networks, an advisory council, or a List the functions, names, and education
the management team. Of course, the business angel, this form of support of your management team (include
photos).
business idea has to be promising, but should also be discussed and explained
only a management team that is deemed in detail here. Given that no one is Include the backgrounds of your
management team with respect to:
to be competent will ultimately be able to perfect and able to carry out all activities Schooling and higher education
implement it successfully. equally well, you can involve people Previous professional experience
from outside the company for certain and qualifications
Work experience in a special area
Investors place great weight on the functions. It is more a sign of the ability Previous management experience
experience, abilities, and integrity of to make a realistic assessment, if Special skills
Previous major successes
management. So you should thoroughly weaknesses are disclosed to the reader
Sector-specific experience and
review the rsums of your management in a transparent manner and solutions for customer relationships
team before seeking financing. It is resolving them are presented. Are there any management vacancies?
therefore little wonder that this section Why? How and when will these be filled?
of the business plan is often the first one
that is read. Management principles
Are there written management principles
Introduce your management team, with respect to:
explain your management principles, Management style?
Staff management and promotion?
and describe your personnel and salary Planning, planning tools?
policy and the training and development Structures?
opportunities you would like to invest in.
Savings on
recruitment costs
department
Customer/
Strengthening of Strengthening of
employer brand employee loyalty
Processes
Expansion of Expansion of
applicant pool knowledge management
Employees
Expertise in dealing
with Web 2.0 technologies
Limiting Assessing
risks risks
considerable
low
none
Business risks
Strategic risks Market risks Financial risks
What risks are expected from the How has the company prepared Is there sufficient liquidity at the right time?
markets as a result of new providers or for changes in interest rates? Can the necessary investments
changed customer needs or behavior? How can currency fluctuations be be carried out?
Is there a risk of a hostile takeover utilized and risks minimized? Are the financial investments and
(M&A) by one of your competitors? How has the company prepared resources being used optimally?
Are managements skills sufficient? for inflation or deflation? How does the company protect
etc. etc. itself against bad debt losses?
etc.
Operational risks
Are there product liability How has the company prepared What are the risks of business interruptions
risks for the company? for damage as a result of fire? due to strikes or adverse circumstances?
How has the company prepared for What environmental damage can be etc.
the loss of employees and managers expected as a result of the companys
as a result of accident and illness? activities, and how can it be prevented?
In the business plan, you have to Financial planning Financial planning tools
convince investors and banks that you The main goal of financial planning is to The following overview presents all
have the necessary business acumen explain how the financial situation of the of the tools for financial planning and
to be able to put together a careful, company will develop if all goals are met explains what conclusions can be derived
objective, and plausible financial plan as as planned. from them.
well as a solid financing concept.
Remember Debt capacity how much debt What are the benefits of using debt
is manageable capacity?
Investors and lenders Banks and other investors are mainly
welcome it when key people
interested in what level of debt a Benefits for companies:
are also involved financially
to a significant extent. company can manage. This figure Financing potential can be assessed,
For negotiating purposes, is called debt capacity. To put it in taking account of the lenders view
therefore, it may be a good somewhat simple terms, it is the freely The capital structure is based on the
idea to indicate what you available cash flow that you either companys risk profile
think the composition of the
distribute as profit or use as reserves Support in assessing and thus
companys capital will look
like in the future. It is also for expanding the company. The free ensuring that future investments can
useful to indicate previous cash flow should be enough to cover be financed
financing. By presenting the interest on operating debts for five
the previous financing to eight years and (theoretically) to pay Benefits for investors and lenders:
requirement and how it was
these debts off. As a result, the debt Integrated view of the entire company
met, you are showing the prior
commitment of key people capacity method is increasingly being (hard and soft factors) as part of the
and financial institutions. used by companies to organize their credit analysis
capital structure. Debt level based on the borrowers
ability to pay the principal and interest
on the debt capital
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Business Plan Checklist
Page 12 Summary
Business plan in abbreviated form Business idea, corporate strategy, market services, corporate team,
financing requirement, role of financial partner
Page 14 Company and corporate strategy
History Gounders, date of founding, company development, successes
Current situation Legal and ownership structure, key figures
Additional background information Startup, expansion, acquisition, and turnaround financing as well as
based on financing environment succession planning
Page 20 Products/services
Market services Detailed description of the market services, customer benefits,
customer needs, and advantages and disadvantages of rival products
Page 23 Market/customers
Market overview Market analysis, customer structure, buyer motivation
Own market position Sub-markets, target customer groups, sales channels
Market assessment/market research Market trends, barriers to entry, estimated growth rates of sub-markets
Page 27 Competition
Rival companies Name, location, target markets, strengths and weaknesses
Rival products Range, features, additional services
Page 29 Marketing
Market segmentation Target markets, customer groups
Market cultivation Sales, product PR, advertising, sales promotion, distribution
Service structure Range, product, service, price policy
Sales target Budgeted sales volumes per sub-market in the next five years, target
market shares in the respective sub-markets
Page 32 Production/delivery/procurement
Production Internal production, external production
Manufacturing Processes, procedures, and quality controls
Procurement Purchase of goods and materials, sourcing of supplies, and ensuring
their availability
Page 35 Research and development
Pipeline/ongoing development projects Milestone management
Page 37 Location/administration
Location Business domicile and locations, advantages and disadvantages of the
Administration selected locations
Administrative structure, organization of accounting, office capacities
Page 38 Information and communication
technology(ICT)
Infrastructure Availability, security, compatibility, and up-to-dateness of systems
Trends Expectations and corresponding measures
Page 41 Management/management tools/
organization
Corporate team Members, responsibilities, remuneration, special abilities
Rsum for each member Education, training, professional experience, previous successes
Advisory council (academic Rsum, specialist competencies, and benefits for the company
or business angel)
Page 46 Risk analysis
Internal business risks Management, production, marketing, finances, staff
External business risks Economic, environmental, legal, and social aspects
Operational risks Product liability, liability
Page 49 Finances
Short-term and long-term financial planning Determine the financing needs with the help of the balance sheet
Financing plan forecast, the income statement forecast, and the cash flow statement
forecast
Liquidity plan
Coverage of financing needs through the addition of new capital and
the source of the new capital
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credit-suisse.com/businesseasy
SNSC 1154027111.2016
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