CREC INITIATIVES

BUSINESS PLAN GUIDANCE

A business plan conveys a business goals and the strategies used to meet them; it identifies problems which
may confront the business and ways to solve them; and it identifies organizational resources required for
launch and ongoing operations. The plan should demonstrate how the proposed initiative will become a
viable, ongoing, profitable business.
A business plan need not be lengthy, but must demonstrate a thorough understanding of the various facets
of this proposed business. Often, a business plan is used as an internal communication and selling
document.
There are 5 major sections to a business plan:
1. The Business Concept
Purpose: a short and concise description of the business proposal - high level commentary.
Suggested length: one to three paragraphs (possibly more if business idea is complex).
Suggested issues to address:

What is the concept?

What is the service?

Is this a new service/business or an established service/business?

Will a new legal entity/company be created?

Who will you sell and distribute to?

What will be our competitive edge or advantage?

How will the service/business make money?

Why will this service/business be profitable and successful? If it will not be profitable, why should
this venture be considered?

Are there any political, social or economic factors which would affect this market?

What is the time frame for getting this service/business established? Are there any critical time
frames or deadlines to be met?
2. Market Strategies
Purpose: to understand the customer; to understand the product/service offered and how it will be
marketed.
Suggested length: few paragraphs to two pages.
Suggested issues to address:

Define the entire potential market who are all the potential customers?

Identify the target market who will the service/business be targeting to sell to and why?

Why will a customer buy this? What need do they have that this product/service fulfills?

How will we sell or market this product/service? How will it be promoted? How will we reach
the customer?

How will the product/service be priced? Will there be any guarantees associated with the product
or service?
3. Competition
Purpose: to understand the competition & its products/services, and why our service/business will be
successful against the competition.
Suggested length: two paragraphs to two pages.
Suggested issues to address:

Who are our competitors?

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How is their product/ service the same or different that ours?

What are their strengths and weaknesses?
How does the competition position and present themselves in the marketplace?
What is so special about our product/service as compared to the competition? Will we be offering a
better price or service quality than the competition? Why will the customer want to buy from us?

4. Financial & Organizational Considerations

Purpose: highlight organizational resources (people, money and time) needed to start-up operations and
continue the business ongoing.
Suggested length: two paragraphs to two pages
Suggested issues to address:
Organizational:

Define the legal organization which will house this service/business.

Define any business relationships which are necessary, or are expected to be maintained. (Vendors,
banks, state agencies, significant customers, partners, investors, etc). Identify the nature of the
relationship and the impact to the service/business if this relationship ceases.

Are there any legal, state or statuary or educational regulation or law which must be addressed?

Will we need services from other CREC divisions (i.e., technology services)? Define please.

Will a new physical location be required? Will space need to be leased?

What type of criteria would cause us to cease this business? At what point do we stop putting
resources towards the service/business?
Financial:

Identify all the people resources required to begin this initiative and manage ongoing operations.

Will we need to hire additional people? If so, identify their role and proposed salary range.

Will we receive any federal, state, local or private funding to offset costs? For what period are these
expected?

Is there any capital purchases required? (equipment office or technology, other?)

Will any outside services need to be hired (recruiting firms, legal counsel, consultants, etc). If so,
define their role, estimated time frame and estimated cost.

When is the service/business expected to break-even or make money?

5. Budget
Purpose: to projected revenues and expenses for the start-up of the service/business and ongoing
operations.
Suggested length: excel spreadsheets depicting expected costs
Suggested issues to address:

Break down start-up costs from ongoing operations

Develop a budget with ability to change variables.

Define any costs to develop the product/service.

Define costs of marketing, promotions and sales.

Consider all overhead costs (travel, maintenance & repairs, leases, rent, supplies, utilities, shipping,
payroll & benefits, insurance, outside vendors, conferences & meetings).

Identify costs (whether in-kind or paid) associated with using CREC resources (technology,
transportation, conference management, etc.)

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CREC
BUSINESS PLAN
Business Initiative: ___________________________________________________________

Division: _________________________

Initiative Director: _________________________________

Date: ____________________________

Authored By: ______________________________________

1. The Business Concept

2. Market Strategies

3. Competition

4. Financial & Organizational Considerations

5. Budget (attached)

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