Business Plan for Capital or Strategic Investments
Many small and medium-sized companies make major capital or strategic investment decisions solely based on instincts. It is not surprising that over 70%-90% of these investments do not get a meaningful return. AVS Business & Technical Services helps clients maximize the returns of such investments by preparing a well-researched business plan. A business plan is a formal statement of a set of business goals, the reasons why they are believed to be attainable or non-attainable, and if attainable the plan for reaching those goals.

The structure and content of a Business Plan are highly tailored to the specific investment so as to provide the best advisory information to the decision-making senior management board of the client. While there is not a sample Business Plan for a specific investment, a business plan for a new manufacturing project may consist of the following information:

:: Executive Summary
:: Background
:: External Assessment
:: Internal Assessment
:: Marketing Assessment
:: Implementation Plan
:: Financial Projections & Analysis
:: Goals, Objectives, & Strategies
:: Conclusions

1) Executive Summary
This is usually a one or two-page summary highlighting the analysis of the investment:

:: Background on the opportunity
:: Overview of the market analysis
:: Overview of the financial analysis
:: Conclusions derived from the analyses
:: Recommended plan of action

2) Background
This section describes the current state of, and the history relating to the business problem or opportunity. It provides relevant measures that will help quantify the business problems and provide an accurate picture of the investment landscape. Example information included in this section is:

:: Overall strategy of the company
:: Description of this opportunity and how it fits into the company’s strategy
:: A discussion of the origin of the business opportunity
:: Reasons for its consideration, e.g., benefits to the company’s strategic framework,    synergetic benefits to other business units.

3) External Assessment
This section presents the argument for why the proposed investment would be beneficial to the company based upon analysis of the external market in which the business unit will be performing the new or expanded activities. Example information includes: market overview, market sizing, competitor analysis, and primary research.

4) Internal Assessment
This section presents a report on the ability of the company to perform the functions required by the proposal, based upon analysis of the historical internal performance of the business unit that will be performing the new or expanded activities. This section also identifies future service development issues and opportunities of the business unit.

5) Marketing Assessment
This section outlines the business unit's marketing objectives, recommends preliminary programs and high level strategies for achieving these objectives, and provides a rough estimate for funds that should be dedicated to the marketing effort.

6) Implementation Plan
This section details how the project will progress from the concept to a functioning area of the company. A timeline must show how long will it be until the new plan starts functioning and how long it will take to mature and reach its full operating capabilities. Any special start-up issues, such as obtaining facilities, staff or equipment, must be addressed. An important aspect of implementation is evaluation. The business unit will need to be able to determine how the performance of the new opportunity compares to the objectives and projections delineated in the business plan.

7) Financial Projections and Analysis
This section explains the assumptions behind, and implications from, the supporting financial schedules. The sources for all support data must be identified. If the project requires funding, the planned source of the funding must be identified. Any concerns, open issues, or unanswered questions on funding must be listed here.

8) Goals, Objectives and Strategies
This section outlines what the business unit wants to accomplish with the new service. Marketing, operational, and financial goals should be considered, along with the methods for achieving them.

9) Conclusions
This section discusses the pros and cons of the opportunity from financial, marketing and operational aspects. It will include a recommendation on the action to be taken on the business opportunity, as well as the risk factors involved, i.e., what happens if the project isn't successful. When feasible, risk-mitigation plans are recommended for each risk factor.