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How to Write a Business Plan, Fifth Edition

 How to Write a Business Plan, Fifth Edition

Author: Michael P. GriffinC.M.A.
Testing Format: multiple choice
Your Price: $159.00
ISBN: 9780761215509
Format: Paper or Softback


The key to a successful business plan.

How to Write a Business Plan presents the latest thinking on effective business planning, while putting all the information and tools students need right at their fingertips. From diagnosing and measuring customer satisfaction to finding innovative ways to raise capital, the fifth edition of this best-selling course explains how to organize and implement the planning process from beginning to end and position a company for success.

Students will learn how to:

• Evaluate a business’s capabilities, strengths, and weaknesses

• Pinpoint the crucial elements of the competitive environment, including market, economic, and technological factors

• Establish realistic goals, objectives, and strategies in areas including marketing, organization and management, production/services, R&D, finance, and information technology

• Develop both operating and financial plans

• Identify and integrate customer requirements into the business plan

• Write the actual planning document and use it to steer a company to greater productivity and profits

• Obtain the capital needed to grow a business

Completely revised and updated, the course now includes sections on developing Information Technology goals and strategies, a new chapter preparing an IT Plan, and a glossary of terms. It also covers the role of the balanced scorecard in developing a business plan and looks at new ways to raise capital such as crowdfunding and search funds. Sample outlines, exercises, and review questions reinforce key concepts and allow students to strengthen their skills. Startups and established businesses alike all need a plan—this course makes creating one easy.

Table of Contents

About This Course xi

How to Take This Course xiii

Pre-Test xv

1 The Business Plan 1

Definition of a Business Plan

Contents of a Business Plan Document

Contingency Plans


Review Questions

2 Introduction to Business Planning 11

What Is Business Planning?

Objectives and Uses of a Business Plan

What to Include in a Business Plan

How to Prepare a Business Plan


Review Questions

3 Diagnosing the Internal Capabilities of a Company 29

The Importance of Understanding a Company’s Operations

Structure of an Internal Diagnosis

How to Use the Results of an Internal Diagnosis


Review Questions

4 Diagnosing and Measuring Customer Satisfaction 57

Structure of the Company’s Operating Environment

Focus on the Customer

What Customers Value

Identifying the Company’s Customers

Customer Research Versus Customer Satisfaction Measurement

Measuring Customer Satisfaction

Ten Key Steps in Customer Satisfaction Measurement


Review Questions

5 Diagnosing the External Environment 77

Components of an External Diagnosis

How to Use the Results of an External Diagnosis


Review Questions

6 Setting Goals 95

Definition of a Mission

The Purpose of Goal Setting

The Nature of Goals, Objectives, and Strategies

How Goals Are Established

Where to Establish Goals and Strategies

How Goals, Objectives, and Strategies Should Be Used


Review Questions

7 Developing a Sales and Revenue Plan 119

Developing Quarterly Sales and Revenue Objectives

Developing Estimates of Marketing and Sales Expenses

Pulling Revenue and Expense Objectives Together

Linking Sales and Revenue Objectives to the Research and

Development Plan

Finalizing the Sales and Revenue Plan


Review Questions

8 Developing a Production Plan 133

Production Scheduling

Raw Materials Planning

Direct Labor Planning

Production Overhead Planning

Computing the Cost of Goods Sold

Finalizing the Production Plan


Review Questions

9 Developing an Organization and Management Plan 145

Developing an Appropriate Management Structure

Developing Effective Management and Information Systems

Developing an Effective Workforce

Estimating Management and Administrative Expenses


Review Questions

10 Developing a Financial Plan 161

Linking the Financial Plan to Financial Goals and Strategies

Preparing an Income Statement

Preparing a Balance Sheet

Preparing a Statement of Cash Flows

Finalizing a Financial Plan


Review Questions

11 Developing an Information Technology Plan 181

IT Situation Analysis

Business and IT Alignment

Tracking Emerging Technologies

Goal Setting and IT Initiatives

The IT Plan and Organizational Learning

Information Technology Budget

Information Technology Performance Measures


Review Questions

12 Preparing a Business Plan to Raise Capital 201

Alternatives for Raising Capital

Sources of Equity

Sources of Debt Financing

What Investors and Lenders Look for in a Business Plan

Factors to Consider in Deciding How to Finance

How to Present the Plan


Review Questions

Bibliography 219

Online Resources 221

Glossary 223

Post-Test 229

Index 235