business plan rubric

Creating a Comprehensive Business Plan Rubric

A well-structured business plan is a foundational document for any entrepreneurial venture, serving as a roadmap to guide your business to success. It provides clarity on your business goals, strategies, and financial projections, making it an essential tool for attracting investors and stakeholders. However, evaluating the quality and completeness of a business plan can be challenging, especially when dealing with multiple plans. This is where a business plan rubric comes into play. It’s a systematic and objective way to assess business plans consistently.

How to Create a Comprehensive Business Plan Rubric

1. define your objectives.

Start by identifying the objectives of your business plan rubric. What do you want to assess and measure in the business plans? Your objectives may include evaluating market research, financial projections, marketing strategies, or overall clarity and coherence. Make sure your objectives align with the key components of a well-rounded business plan.

2. Establish Criteria

For each objective, establish specific criteria or factors that you will evaluate. For instance, if you’re assessing market research, your criteria might include the depth of market analysis, competitor research, and target audience insights. Clearly define the criteria for each objective.

3. Assign Weightings

Not all criteria are equally important. Assign weightings to each criterion based on its significance. Weightings reflect the relative importance of different elements in the business plan. For example, financial projections may carry more weight than a company’s historical background.

4. Develop a Scoring System

Create a scoring system for each criterion. You can use a numerical scale (e.g., 1-5, 1-10) or a descriptive scale (e.g., poor, fair, good, excellent). This system allows you to provide a quantitative assessment for each criterion.

5. Provide Clear Descriptions

For each criterion and level on the scoring system, provide clear descriptions of what each level represents. This ensures consistent and objective evaluation. Avoid vague descriptions to prevent subjectivity.

6. Consider the Overall Structure

Include an assessment of the business plan’s overall structure and presentation. Elements to consider might include readability, use of headings, and formatting. A well-organized and visually appealing plan often indicates a more professional and thoughtful approach.

7. Test Your Rubric

Before applying your rubric to assess real business plans, test it with a few sample plans to ensure that it’s clear, fair, and effective. Make any necessary adjustments based on your testing.

8. Evaluate Business Plans

Once your rubric is ready, you can begin evaluating business plans. Review each plan against the criteria, assign scores, and calculate the final scores based on the weightings.

9. Provide Feedback

After assessing the plans, offer constructive feedback to the entrepreneurs or teams behind them. Highlight strengths and weaknesses, and offer recommendations for improvement. This feedback can be invaluable for the plan’s creators.

10. Maintain Consistency

Consistency is key in using a business plan rubric. Ensure that different assessors apply the rubric consistently, and if possible, discuss and calibrate your rubric assessments with other evaluators to maintain fairness and objectivity.

11. Use the Results

The results from your business plan rubric can help you make informed decisions about which plans align best with your investment or support criteria. Plans with higher scores are likely more well-prepared and have thoroughly considered various aspects of their business.

Business Rubric Example

Here are a few examples of criteria that could be included in a business plan rubric along with a corresponding scoring system:

• Identification of target market (5 points)
• Thoroughness of competitor analysis (5 points)
• Assessment of market trends and growth potential (5 points)
• Realistic revenue forecasts (5 points)
• Comprehensive cost analysis (5 points)
• Clear understanding of profit margins (5 points)
• Coherent and effective marketing plan (5 points)
• Utilization of digital marketing tools (5 points)
• Identification of key marketing channels (5 points)
• Description of unique value proposition (5 points)
• Clarity in product development roadmap (5 points)
• Assessment of potential market demand (5 points)
• Demonstrated expertise and experience (5 points)
• Coherence and complementary skills of the team (5 points)
• Clarity in roles and responsibilities (5 points)
• Identification of potential risks (5 points)
• Comprehensive risk mitigation strategies (5 points)
• Contingency plans for identified risks (5 points)
• Clarity and coherence of the business plan structure (5 points)
• Use of appropriate visuals and graphics (5 points)
• Professionalism and readability of the document (5 points)

For each of the criteria listed above, a scoring system can be implemented using a scale such as:

• 1-5 scale (1 being Poor, 5 being Excellent)
• 1-10 scale (1 being Low, 10 being High)
• Descriptive scale (Poor, Fair, Good, Excellent)

In summary, a well-structured business plan rubric is a valuable tool for evaluating and comparing multiple business plans. It provides objectivity, consistency, and fairness in assessing the quality and completeness of these plans, helping you make informed decisions when considering investments or partnerships. This business plan rubric can help assessors evaluate various business plans consistently and objectively, providing a comprehensive overview of the strengths and weaknesses of each plan and aiding in making informed decisions regarding potential investments or collaborations.

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How to Create an Effective Business Plan Rubric

Introduction.

A business plan rubric is a tool used to evaluate the quality of a business plan. It is a set of criteria that can be used to measure the effectiveness of a business plan in achieving its objectives. The rubric can be used to assess the overall quality of the plan, as well as specific elements such as the clarity of the plan, the accuracy of the financial projections, and the feasibility of the proposed strategies. A business plan rubric can be used by entrepreneurs, investors, and other stakeholders to ensure that the business plan meets their expectations. It can also be used to provide feedback to the business plan writer, helping them to improve their plan and increase its chances of success.

1. Clarity: Does the business plan clearly explain the business concept, objectives, and strategies? (0-5 points)

2. Organization: Is the business plan organized in a logical and easy-to-follow manner? (0-5 points)

3. Market Analysis: Does the business plan include a thorough analysis of the target market and competition? (0-5 points)

4. Financials: Does the business plan include accurate and realistic financial projections? (0-5 points)

5. Feasibility: Does the business plan demonstrate that the business is feasible and likely to succeed? (0-5 points)

6. Writing Quality: Is the business plan written in a professional and formal tone? (0-5 points)

7. Presentation: Is the business plan presented in a visually appealing and professional manner? (0-5 points)

Total Score: 0-35 points

The Benefits of Using a Business Plan Rubric

A business plan rubric is a tool used to evaluate the quality of a business plan. It is a set of criteria that can be used to measure the effectiveness of a business plan. The rubric can be used to assess the overall quality of the plan, as well as specific elements such as the clarity of the plan, the accuracy of the financial projections, and the feasibility of the proposed strategies.

Using a business plan rubric can be beneficial for both the business and the evaluator. For the business, it provides a clear set of criteria that can be used to assess the quality of the plan. This can help the business to identify areas that need improvement and to ensure that the plan is comprehensive and well-structured.

For the evaluator , the rubric provides a consistent and objective way to assess the quality of the plan. This can help to ensure that the evaluation is fair and unbiased. The rubric can also be used to compare different plans and to identify areas of strength and weakness.

Overall , using a business plan rubric can be a useful tool for both the business and the evaluator. It can help to ensure that the plan is comprehensive and well-structured, and that the evaluation is fair and unbiased.

The Different Components of a Business Plan Rubric

1. Executive Summary: This section should provide a concise overview of the business plan, including the company’s mission, goals, and objectives.

2. Market Analysis: This section should provide an analysis of the target market, including an overview of the industry, the competitive landscape, and the potential customer base.

3. Product/Service Description: This section should provide a detailed description of the product or service being offered, including features, benefits, and pricing.

4. Marketing Plan: This section should provide a comprehensive plan for marketing the product or service, including strategies for advertising, promotion, and distribution.

5. Operations Plan: This section should provide a detailed plan for the day-to-day operations of the business, including staffing, facilities, and equipment.

6. Financial Plan: This section should provide a comprehensive financial plan, including a budget, cash flow projections, and financial statements.

7. Risk Management Plan: This section should provide a plan for mitigating potential risks, including legal, financial, and operational risks.

8. Appendix: This section should provide any additional information that may be relevant to the business plan, such as resumes, contracts, and other documents.

How to Use a Business Plan Rubric to Evaluate Your Plan

1. Clarity: Does the plan clearly explain the business concept, objectives, and strategies?

2. Organization: Is the plan well-structured and easy to follow?

3. Financials: Does the plan include accurate and realistic financial projections?

4. Market Analysis: Does the plan include a thorough analysis of the target market and competitive landscape?

5. Risk Analysis: Does the plan include a comprehensive assessment of potential risks and how they will be managed?

6. Implementation: Does the plan include a detailed plan for implementation and execution?

7. Quality: Is the plan free of errors and typos?

8. Professionalism: Is the plan presented in a professional manner?

Tips for Writing a Business Plan That Meets the Criteria of a Rubric

1. Begin by researching the criteria of the rubric . Make sure you understand the expectations of the rubric and the criteria that will be used to evaluate your business plan.

2. Create an outline of the business plan that includes all the necessary sections and subsections . This will help you stay organized and ensure that you cover all the necessary topics.

3. Use a formal writing style and tone throughout the business plan . This means avoiding slang, jargon, and colloquialisms.

4. Make sure to include all the necessary information in each section. This includes financial projections, market analysis, competitive analysis, and more.

5. Use clear and concise language throughout the business plan. Avoid long-winded sentences and complex language.

6. Proofread and edit the business plan multiple times. This will help ensure that the plan is free of errors and meets the criteria of the rubric.

7. Have someone else review the business plan. This will help you identify any areas that need improvement or clarification.

Common Mistakes to Avoid When Creating a Business Plan Rubric

1. Not including a timeline: A business plan should include a timeline of when goals and objectives will be achieved. Without a timeline, it is difficult to measure progress and success.

2. Not including financial projections: Financial projections are essential for any business plan. They provide an estimate of the expected costs and revenues associated with the business. Without financial projections, it is difficult to assess the viability of the business.

3. Not including a competitive analysis: A competitive analysis is important for any business plan. It provides an overview of the competition and helps to identify potential opportunities and threats.

4. Not including a marketing plan: A marketing plan is essential for any business plan. It outlines the strategies and tactics that will be used to reach the target market and generate sales.

5. Not including a risk assessment: A risk assessment is important for any business plan. It identifies potential risks and outlines strategies to mitigate them.

6. Not including an executive summary: An executive summary is a brief overview of the business plan. It should include the key points of the plan and provide an overview of the business.

7. Not including a SWOT analysis: A SWOT analysis is a tool used to identify the strengths, weaknesses, opportunities, and threats associated with the business. It is important to include a SWOT analysis in the business plan.

8. Not including a budget: A budget is essential for any business plan. It outlines the expected costs associated with the business and helps to ensure that the business is financially viable.

• BUSINESS PLAN RUBRIC TEMPLATE
• Business Plan Rubric
• iRubric: Business Plan Grading Rubric (Written) – W523C3

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11.4 The Business Plan

Learning objectives.

By the end of this section, you will be able to:

• Describe the different purposes of a business plan
• Describe and develop the components of a brief business plan
• Describe and develop the components of a full business plan

Unlike the brief or lean formats introduced so far, the business plan is a formal document used for the long-range planning of a company’s operation. It typically includes background information, financial information, and a summary of the business. Investors nearly always request a formal business plan because it is an integral part of their evaluation of whether to invest in a company. Although nothing in business is permanent, a business plan typically has components that are more “set in stone” than a business model canvas , which is more commonly used as a first step in the planning process and throughout the early stages of a nascent business. A business plan is likely to describe the business and industry, market strategies, sales potential, and competitive analysis, as well as the company’s long-term goals and objectives. An in-depth formal business plan would follow at later stages after various iterations to business model canvases. The business plan usually projects financial data over a three-year period and is typically required by banks or other investors to secure funding. The business plan is a roadmap for the company to follow over multiple years.

Some entrepreneurs prefer to use the canvas process instead of the business plan, whereas others use a shorter version of the business plan, submitting it to investors after several iterations. There are also entrepreneurs who use the business plan earlier in the entrepreneurial process, either preceding or concurrently with a canvas. For instance, Chris Guillebeau has a one-page business plan template in his book The $100 Startup . 48 His version is basically an extension of a napkin sketch without the detail of a full business plan. As you progress, you can also consider a brief business plan (about two pages)—if you want to support a rapid business launch—and/or a standard business plan.

As with many aspects of entrepreneurship, there are no clear hard and fast rules to achieving entrepreneurial success. You may encounter different people who want different things (canvas, summary, full business plan), and you also have flexibility in following whatever tool works best for you. Like the canvas, the various versions of the business plan are tools that will aid you in your entrepreneurial endeavor.

Business Plan Overview

Most business plans have several distinct sections ( Figure 11.16 ). The business plan can range from a few pages to twenty-five pages or more, depending on the purpose and the intended audience. For our discussion, we’ll describe a brief business plan and a standard business plan. If you are able to successfully design a business model canvas, then you will have the structure for developing a clear business plan that you can submit for financial consideration.

Both types of business plans aim at providing a picture and roadmap to follow from conception to creation. If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept.

The full business plan is aimed at executing the vision concept, dealing with the proverbial devil in the details. Developing a full business plan will assist those of you who need a more detailed and structured roadmap, or those of you with little to no background in business. The business planning process includes the business model, a feasibility analysis, and a full business plan, which we will discuss later in this section. Next, we explore how a business plan can meet several different needs.

Purposes of a Business Plan

A business plan can serve many different purposes—some internal, others external. As we discussed previously, you can use a business plan as an internal early planning device, an extension of a napkin sketch, and as a follow-up to one of the canvas tools. A business plan can be an organizational roadmap , that is, an internal planning tool and working plan that you can apply to your business in order to reach your desired goals over the course of several years. The business plan should be written by the owners of the venture, since it forces a firsthand examination of the business operations and allows them to focus on areas that need improvement.

Refer to the business venture throughout the document. Generally speaking, a business plan should not be written in the first person.

A major external purpose for the business plan is as an investment tool that outlines financial projections, becoming a document designed to attract investors. In many instances, a business plan can complement a formal investor’s pitch. In this context, the business plan is a presentation plan, intended for an outside audience that may or may not be familiar with your industry, your business, and your competitors.

You can also use your business plan as a contingency plan by outlining some “what-if” scenarios and exploring how you might respond if these scenarios unfold. Pretty Young Professional launched in November 2010 as an online resource to guide an emerging generation of female leaders. The site focused on recent female college graduates and current students searching for professional roles and those in their first professional roles. It was founded by four friends who were coworkers at the global consultancy firm McKinsey. But after positions and equity were decided among them, fundamental differences of opinion about the direction of the business emerged between two factions, according to the cofounder and former CEO Kathryn Minshew . “I think, naively, we assumed that if we kicked the can down the road on some of those things, we’d be able to sort them out,” Minshew said. Minshew went on to found a different professional site, The Muse , and took much of the editorial team of Pretty Young Professional with her. 49 Whereas greater planning potentially could have prevented the early demise of Pretty Young Professional, a change in planning led to overnight success for Joshua Esnard and The Cut Buddy team. Esnard invented and patented the plastic hair template that he was selling online out of his Fort Lauderdale garage while working a full-time job at Broward College and running a side business. Esnard had hundreds of boxes of Cut Buddies sitting in his home when he changed his marketing plan to enlist companies specializing in making videos go viral. It worked so well that a promotional video for the product garnered 8 million views in hours. The Cut Buddy sold over 4,000 products in a few hours when Esnard only had hundreds remaining. Demand greatly exceeded his supply, so Esnard had to scramble to increase manufacturing and offered customers two-for-one deals to make up for delays. This led to selling 55,000 units, generating $700,000 in sales in 2017. 50 After appearing on Shark Tank and landing a deal with Daymond John that gave the “shark” a 20-percent equity stake in return for $300,000, The Cut Buddy has added new distribution channels to include retail sales along with online commerce. Changing one aspect of a business plan—the marketing plan—yielded success for The Cut Buddy.

Link to Learning

Watch this video of Cut Buddy’s founder, Joshua Esnard, telling his company’s story to learn more.

If you opt for the brief business plan, you will focus primarily on articulating a big-picture overview of your business concept. This version is used to interest potential investors, employees, and other stakeholders, and will include a financial summary “box,” but it must have a disclaimer, and the founder/entrepreneur may need to have the people who receive it sign a nondisclosure agreement (NDA) . The full business plan is aimed at executing the vision concept, providing supporting details, and would be required by financial institutions and others as they formally become stakeholders in the venture. Both are aimed at providing a picture and roadmap to go from conception to creation.

Types of Business Plans

The brief business plan is similar to an extended executive summary from the full business plan. This concise document provides a broad overview of your entrepreneurial concept, your team members, how and why you will execute on your plans, and why you are the ones to do so. You can think of a brief business plan as a scene setter or—since we began this chapter with a film reference—as a trailer to the full movie. The brief business plan is the commercial equivalent to a trailer for Field of Dreams , whereas the full plan is the full-length movie equivalent.

Brief Business Plan or Executive Summary

As the name implies, the brief business plan or executive summary summarizes key elements of the entire business plan, such as the business concept, financial features, and current business position. The executive summary version of the business plan is your opportunity to broadly articulate the overall concept and vision of the company for yourself, for prospective investors, and for current and future employees.

A typical executive summary is generally no longer than a page, but because the brief business plan is essentially an extended executive summary, the executive summary section is vital. This is the “ask” to an investor. You should begin by clearly stating what you are asking for in the summary.

In the business concept phase, you’ll describe the business, its product, and its markets. Describe the customer segment it serves and why your company will hold a competitive advantage. This section may align roughly with the customer segments and value-proposition segments of a canvas.

Next, highlight the important financial features, including sales, profits, cash flows, and return on investment. Like the financial portion of a feasibility analysis, the financial analysis component of a business plan may typically include items like a twelve-month profit and loss projection, a three- or four-year profit and loss projection, a cash-flow projection, a projected balance sheet, and a breakeven calculation. You can explore a feasibility study and financial projections in more depth in the formal business plan. Here, you want to focus on the big picture of your numbers and what they mean.

The current business position section can furnish relevant information about you and your team members and the company at large. This is your opportunity to tell the story of how you formed the company, to describe its legal status (form of operation), and to list the principal players. In one part of the extended executive summary, you can cover your reasons for starting the business: Here is an opportunity to clearly define the needs you think you can meet and perhaps get into the pains and gains of customers. You also can provide a summary of the overall strategic direction in which you intend to take the company. Describe the company’s mission, vision, goals and objectives, overall business model, and value proposition.

Rice University’s Student Business Plan Competition, one of the largest and overall best-regarded graduate school business-plan competitions (see Telling Your Entrepreneurial Story and Pitching the Idea ), requires an executive summary of up to five pages to apply. 51 , 52 Its suggested sections are shown in Table 11.2 .

Are You Ready?

Create a brief business plan.

Fill out a canvas of your choosing for a well-known startup: Uber, Netflix, Dropbox, Etsy, Airbnb, Bird/Lime, Warby Parker, or any of the companies featured throughout this chapter or one of your choice. Then create a brief business plan for that business. See if you can find a version of the company’s actual executive summary, business plan, or canvas. Compare and contrast your vision with what the company has articulated.

• These companies are well established but is there a component of what you charted that you would advise the company to change to ensure future viability?
• Map out a contingency plan for a “what-if” scenario if one key aspect of the company or the environment it operates in were drastically is altered?

Full Business Plan

Even full business plans can vary in length, scale, and scope. Rice University sets a ten-page cap on business plans submitted for the full competition. The IndUS Entrepreneurs , one of the largest global networks of entrepreneurs, also holds business plan competitions for students through its Tie Young Entrepreneurs program. In contrast, business plans submitted for that competition can usually be up to twenty-five pages. These are just two examples. Some components may differ slightly; common elements are typically found in a formal business plan outline. The next section will provide sample components of a full business plan for a fictional business.

Executive Summary

The executive summary should provide an overview of your business with key points and issues. Because the summary is intended to summarize the entire document, it is most helpful to write this section last, even though it comes first in sequence. The writing in this section should be especially concise. Readers should be able to understand your needs and capabilities at first glance. The section should tell the reader what you want and your “ask” should be explicitly stated in the summary.

Describe your business, its product or service, and the intended customers. Explain what will be sold, who it will be sold to, and what competitive advantages the business has. Table 11.3 shows a sample executive summary for the fictional company La Vida Lola.

Business Description

This section describes the industry, your product, and the business and success factors. It should provide a current outlook as well as future trends and developments. You also should address your company’s mission, vision, goals, and objectives. Summarize your overall strategic direction, your reasons for starting the business, a description of your products and services, your business model, and your company’s value proposition. Consider including the Standard Industrial Classification/North American Industry Classification System (SIC/NAICS) code to specify the industry and insure correct identification. The industry extends beyond where the business is located and operates, and should include national and global dynamics. Table 11.4 shows a sample business description for La Vida Lola.

Industry Analysis and Market Strategies

Here you should define your market in terms of size, structure, growth prospects, trends, and sales potential. You’ll want to include your TAM and forecast the SAM . (Both these terms are discussed in Conducting a Feasibility Analysis .) This is a place to address market segmentation strategies by geography, customer attributes, or product orientation. Describe your positioning relative to your competitors’ in terms of pricing, distribution, promotion plan, and sales potential. Table 11.5 shows an example industry analysis and market strategy for La Vida Lola.

Competitive Analysis

The competitive analysis is a statement of the business strategy as it relates to the competition. You want to be able to identify who are your major competitors and assess what are their market shares, markets served, strategies employed, and expected response to entry? You likely want to conduct a classic SWOT analysis (Strengths Weaknesses Opportunities Threats) and complete a competitive-strength grid or competitive matrix. Outline your company’s competitive strengths relative to those of the competition in regard to product, distribution, pricing, promotion, and advertising. What are your company’s competitive advantages and their likely impacts on its success? The key is to construct it properly for the relevant features/benefits (by weight, according to customers) and how the startup compares to incumbents. The competitive matrix should show clearly how and why the startup has a clear (if not currently measurable) competitive advantage. Some common features in the example include price, benefits, quality, type of features, locations, and distribution/sales. Sample templates are shown in Figure 11.17 and Figure 11.18 . A competitive analysis helps you create a marketing strategy that will identify assets or skills that your competitors are lacking so you can plan to fill those gaps, giving you a distinct competitive advantage. When creating a competitor analysis, it is important to focus on the key features and elements that matter to customers, rather than focusing too heavily on the entrepreneur’s idea and desires.

Operations and Management Plan

In this section, outline how you will manage your company. Describe its organizational structure. Here you can address the form of ownership and, if warranted, include an organizational chart/structure. Highlight the backgrounds, experiences, qualifications, areas of expertise, and roles of members of the management team. This is also the place to mention any other stakeholders, such as a board of directors or advisory board(s), and their relevant relationship to the founder, experience and value to help make the venture successful, and professional service firms providing management support, such as accounting services and legal counsel.

Table 11.6 shows a sample operations and management plan for La Vida Lola.

Marketing Plan

Here you should outline and describe an effective overall marketing strategy for your venture, providing details regarding pricing, promotion, advertising, distribution, media usage, public relations, and a digital presence. Fully describe your sales management plan and the composition of your sales force, along with a comprehensive and detailed budget for the marketing plan. Table 11.7 shows a sample marketing plan for La Vida Lola.

Financial Plan

A financial plan seeks to forecast revenue and expenses; project a financial narrative; and estimate project costs, valuations, and cash flow projections. This section should present an accurate, realistic, and achievable financial plan for your venture (see Entrepreneurial Finance and Accounting for detailed discussions about conducting these projections). Include sales forecasts and income projections, pro forma financial statements ( Building the Entrepreneurial Dream Team , a breakeven analysis, and a capital budget. Identify your possible sources of financing (discussed in Conducting a Feasibility Analysis ). Figure 11.19 shows a template of cash-flow needs for La Vida Lola.

Entrepreneur In Action

Laughing man coffee.

Hugh Jackman ( Figure 11.20 ) may best be known for portraying a comic-book superhero who used his mutant abilities to protect the world from villains. But the Wolverine actor is also working to make the planet a better place for real, not through adamantium claws but through social entrepreneurship.

A love of java jolted Jackman into action in 2009, when he traveled to Ethiopia with a Christian humanitarian group to shoot a documentary about the impact of fair-trade certification on coffee growers there. He decided to launch a business and follow in the footsteps of the late Paul Newman, another famous actor turned philanthropist via food ventures.

Jackman launched Laughing Man Coffee two years later; he sold the line to Keurig in 2015. One Laughing Man Coffee café in New York continues to operate independently, investing its proceeds into charitable programs that support better housing, health, and educational initiatives within fair-trade farming communities. 55 Although the New York location is the only café, the coffee brand is still distributed, with Keurig donating an undisclosed portion of Laughing Man proceeds to those causes (whereas Jackman donates all his profits). The company initially donated its profits to World Vision, the Christian humanitarian group Jackman accompanied in 2009. In 2017, it created the Laughing Man Foundation to be more active with its money management and distribution.

• You be the entrepreneur. If you were Jackman, would you have sold the company to Keurig? Why or why not?
• Would you have started the Laughing Man Foundation?
• What else can Jackman do to aid fair-trade practices for coffee growers?

What Can You Do?

Textbooks for change.

Founded in 2014, Textbooks for Change uses a cross-compensation model, in which one customer segment pays for a product or service, and the profit from that revenue is used to provide the same product or service to another, underserved segment. Textbooks for Change partners with student organizations to collect used college textbooks, some of which are re-sold while others are donated to students in need at underserved universities across the globe. The organization has reused or recycled 250,000 textbooks, providing 220,000 students with access through seven campus partners in East Africa. This B-corp social enterprise tackles a problem and offers a solution that is directly relevant to college students like yourself. Have you observed a problem on your college campus or other campuses that is not being served properly? Could it result in a social enterprise?

Work It Out

Franchisee set out.

A franchisee of East Coast Wings, a chain with dozens of restaurants in the United States, has decided to part ways with the chain. The new store will feature the same basic sports-bar-and-restaurant concept and serve the same basic foods: chicken wings, burgers, sandwiches, and the like. The new restaurant can’t rely on the same distributors and suppliers. A new business plan is needed.

• What steps should the new restaurant take to create a new business plan?
• Should it attempt to serve the same customers? Why or why not?

This New York Times video, “An Unlikely Business Plan,” describes entrepreneurial resurgence in Detroit, Michigan.

• 48 Chris Guillebeau. The $100 Startup: Reinvent the Way You Make a Living, Do What You Love, and Create a New Future . New York: Crown Business/Random House, 2012.
• 49 Jonathan Chan. “What These 4 Startup Case Studies Can Teach You about Failure.” Foundr.com . July 12, 2015. https://foundr.com/4-startup-case-studies-failure/
• 50 Amy Feldman. “Inventor of the Cut Buddy Paid YouTubers to Spark Sales. He Wasn’t Ready for a Video to Go Viral.” Forbes. February 15, 2017. https://www.forbes.com/sites/forbestreptalks/2017/02/15/inventor-of-the-cut-buddy-paid-youtubers-to-spark-sales-he-wasnt-ready-for-a-video-to-go-viral/#3eb540ce798a
• 51 Jennifer Post. “National Business Plan Competitions for Entrepreneurs.” Business News Daily . August 30, 2018. https://www.businessnewsdaily.com/6902-business-plan-competitions-entrepreneurs.html
• 52 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition . March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf
• 53 “Rice Business Plan Competition, Eligibility Criteria and How to Apply.” Rice Business Plan Competition. March 2020. https://rbpc.rice.edu/sites/g/files/bxs806/f/2020%20RBPC%20Eligibility%20Criteria%20and%20How%20to%20Apply_23Oct19.pdf; Based on 2019 RBPC Competition Rules and Format April 4–6, 2019. https://rbpc.rice.edu/sites/g/files/bxs806/f/2019-RBPC-Competition-Rules%20-Format.pdf
• 54 Foodstart. http://foodstart.com
• 55 “Hugh Jackman Journey to Starting a Social Enterprise Coffee Company.” Giving Compass. April 8, 2018. https://givingcompass.org/article/hugh-jackman-journey-to-starting-a-social-enterprise-coffee-company/

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• Authors: Michael Laverty, Chris Littel
• Publisher/website: OpenStax
• Book title: Entrepreneurship
• Publication date: Jan 16, 2020
• Location: Houston, Texas
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500+ business plans and financial models

Manufacturing Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful manufacturing business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your manufacturing business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a manufacturing business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the manufacturing industry, this guide, complete with a business plan example, lays the groundwork for turning your manufacturing business concept into reality. Let’s dive in!

Our manufacturing business plan covers all essential aspects necessary for a comprehensive strategy. It details operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of the manufacturing company’s business concept, market analysis , management, and financial strategy.
• Facilities & Equipment: Describes the facility’s capabilities, machinery, and technological advancements.
• Operations & Supply: Outlines the production processes, supply chain logistics, and inventory management.
• Key Stats: Offers data on industry size , growth trends, and market positioning.
• Key Trends: Highlights significant trends impacting the industry, such as automation and localization.
• Key Competitors : Analyzes primary competitors and differentiates the company from these rivals.
• SWOT: Analyzes strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Outlines tactics for attracting new contracts and maintaining client relationships.
• Timeline : Sets out key milestones from inception through the first year of operations.
• Management: Information on the management team and their roles within the company.
• Financial Plan: Projects the company’s financial performance over the next five years, detailing revenue, profits, and anticipated expenses.

Manufacturing Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your manufacturing business plan, offering a concise overview of your manufacturing facility and its products. It should detail your market positioning, the range of products manufactured, the production process, its location, size, and an outline of day-to-day operations.

This section should also explore how your manufacturing business will integrate into the local and broader markets, including the number of direct competitors within the area, identifying who they are, along with your business’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the business’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your business’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

Facilities & equipment.

Describe your manufacturing facility. Highlight its design, capacity, and technology. Mention the location, emphasizing accessibility to transport routes. Discuss advantages for efficiency and cost management. Detail essential equipment and its capabilities.

Operations & Supply Chain

Detail product range. Outline your operations strategy for efficiency and scalability. Discuss supply chain management. Highlight sourcing of materials, inventory control, and logistics. Emphasize strong partnerships with suppliers and distributors.

Make sure to cover here _ Facilities & Equipment _ Operations & Supplies

Market Overview

Industry size & growth.

Start by examining the size of the manufacturing industry relevant to your products and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing demand for sustainable manufacturing processes, automation, and advanced materials. For example, highlight the demand for products that utilize eco-friendly materials or energy-efficient production techniques, alongside the rising popularity of smart manufacturing.

Key Competitors

Then, consider the competitive landscape, which includes a range of manufacturers from large-scale enterprises to niche firms. For example, emphasize what makes your business distinctive, whether it’s through advanced technology, superior product quality, or specialization in certain manufacturing niches. This section will help articulate the demand for your products, the competitive environment, and how your business is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for your manufacturing business. Highlight Strengths such as advanced production technology and a skilled workforce. Address Weaknesses, including potential supply chain vulnerabilities or high production costs. Identify Opportunities like emerging markets for your products or potential for innovation in production processes. Consider Threats such as global competition or economic downturns that may impact demand for your products.

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through targeted advertising, trade shows, digital marketing, and strategic partnerships. Emphasize the importance of showcasing product quality and technological advantages to differentiate your business in the market.

Finally, create a detailed timeline that outlines critical milestones for your manufacturing business’s launch, marketing initiatives, customer acquisition, and expansion goals. Ensure the business progresses with clear direction and purpose, setting specific dates for achieving key operational and sales targets.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the manufacturing business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the manufacturing business toward its financial and operational goals.

For your manufacturing business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your manufacturing business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your manufacturing business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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DEVELOP YOUR INNER ENTREPRENEUR

To promote interest in independent community pharmacy ownership, the National Community Pharmacists Association (NCPA) and the NCPA Foundation have established the Good Neighbor Pharmacy NCPA Pruitt-Schutte Student Business Plan Competition. The goal of the Competition is to motivate student pharmacists to create the blueprint necessary for buying an existing independent community pharmacy or developing a new pharmacy. Through this competition, NCPA is better able to prepare tomorrow's pharmacy entrepreneurs for a successful future.

The Business Plan Competition is the first national competition of its kind in the pharmacy profession and is named to honor two great champions of independent pharmacy, the late Neil Pruitt, Sr., and the late H. Joseph Schutte. The Pruitt and Schutte families initiated an endowment fund with the NCPA Foundation to help support annual operating expenses of the Competition. The Competition is supported by  Good Neighbor Pharmacy ,  Pharmacists Mutual , and the  NCPA Foundation .

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