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This document is copyrighted by the NFPA. It is made available for a wide variety of both public and private uses. These include both use, by reference, in laws and regulations, and use in private self-regulation, standardization, and the promotion of safe practices and methods. By making this document available for use and adoption by public authorities and private users, the NFPA does not waive any rights in copyright to this document. Use of NFPA documents for regulatory purposes should be accomplished through adop- tion by reference. The term “adoption by reference” means the citing of title, edition, and publishing information only. Any deletions, additions, and changes. | HOW TO WRITE A BUSINESS PLAN McKinsey Company Table of Contents Preface.4 1. THE ROUTE FROM CONCEPT TO COMPANY.4 1.1 Success factors.4 1.2 Stages of development.5 2. THE business idea.8 2.1 Development of a business idea.8 2.2 Elements of a promising business idea.9 2.3 Protecting your business idea.13 2.4 Presenting to investors.14 3. THE BUSINESS PLAN.16 3.1 Advantages of a business plan.16 3.2 Characteristics of a successful business plan.16 3.3 The investor s point of view.18 3.4 Tips on preparing a professional business plan . 21 4. sTruCtUre aNd key elements of a business plan.23 4.1 Executive summary. 23 4.2 Product or service.24 4.3 Management team . 26 4.4 Market and competition.28 4.5 Marketing and sales. 32 4.6 Business system and organization.37 4.7 Implementation schedule.41 4.8 Opportunities and risks.42 4.9 Financial planning and financing.42 5. CASE study CITYSCAPE . 48 5.1 CityScape Idea and business concept.48 5.2 CityScape Business plan.49 5.2.1. - EXECUTIVE SUMMARY.50 5.2.2. - SERVICE IDEA. 52 5.2.3. - MANAGEMENT TEAM. 53 5.2.4. - MARKET AND COMPETITION.54 5.2.5. - COMPETITOR ANALYSIS. . 55 5.2.6. - CITY SCOPE S COMPETITIVE ADVANTAGES .56 5.2.6. - MARKETING AND SALES. .57 5.2.7. - BUSINESS SYSTEM AND ORGANIZATIOiN.58 5.2.8. - IMPLEMENTATION SCHEDULE. 60 5.2.9. - OPPORTUNITIES AND RISKS.61 5.2.10. - FINANCIAL PLANNING AND FINANCING .62 5.3.- Critique of elements of CityScape business plan.68 2 Preface This Guide to writing a business plan is designed to help you in developing your business idea from concept to company . It details the contents scope and structure of a business plan and the expectations venture capitalists have when reading one and provides valuable pointers on starting up a company. The Guide is not intended as a business studies resource nor is it a theoretical treatise on the nature of business plans per se. Rather it offers practical tips to help you get started setting up your company. Naturally there is no guarantee that all
