Cabrillo College Library


Business plans are essential. They function as road maps for starting and managing a business, and as documents for raising capital or securing financial backing. Good old-fashioned research goes into developing a business plan.

Background Information

Your name _______________________________

Before you begin, you might want to read general information on How to Develop and Use a Business Plan from Pacific Business Marketing..

1. Background Information -- To set the context for the business plan, you need to ask yourself, and find answers for, some basic questions about the business you envision.

1-1. Type of business -- What type of business do you have/are you planning (wholesale/retail/other)?

___________________________________________________________

1-2. Mission of your business -- What is the real purpose (mission) of your business? Do not say "to make a profit"

____________________________________________________________

1-3. Who is your primary target market (your customers)? Why are they targeted?

The SBA's Essential Elements of a Good Business Plan offers this guidance about determining your primary target market:

  • Distinguishing characteristics of the major/primary market you are targeting. This section might include information about the critical needs of your potential customers, the degree to which those needs are (or are not) currently being met, and the demographics of the group. It would also include the geographic location of your target market, the identification of the major decision-makers, and any seasonal or cyclical trends which may impact the industry or your business.
  • Size of the primary target market Here, you would need to know the number of potential customers in your primary market, the number of annual purchases they make of products or services similar to your own, the geographic area they reside in, and the forecasted market growth for this group.

These Web sites will help you identify demographic characteristics and estimate the size of your primary target market:

___________________________________________________________

___________________________________________________________

___________________________________________________________

Books in Cabrillo College Library that will help you as you answer questions
4-6 (& others).

  • U.S. Industry & Trade Outlook ref HC106.82 .U16
  • Small Business Sourcebook ref HD2346.U5S66

1-4. What is/are your primary product(s)/service(s)?

___________________________________________________________

___________________________________________________________

___________________________________________________________

1-5. What is the primary function (purpose) of your product/service?

____________________________________________________________

1-6. What are three distinct benefits of your product/services to the customer?

  1. _________________________________________________

  2. _________________________________________________

  3. __________________________________________________

1-7. What is your reason for "being"/starting in this business (other than profit)?

___________________________________________________________

___________________________________________________________

___________________________________________________________

1-8. What conditions led you to develop your product/service?

____________________________________________________________

____________________________________________________________

____________________________________________________________

 

Mo Hassan; T. N. Smalley
01/01; last rev. 3/05