The following business plan elements are a guide to help entrants construct a plan for the Challenge. When reading this document and developing a plan keep in mind that writing a business plan is not an exact science. There are many different possible structures and items that could be included, depending on the use of the plan and the industry for which it is written. The plans in the Northeast Ohio Business Plan Challenge will be judged on how well the authors address the following elements and provide credibility for the business concept, model, and management team. It will be evaluated for feasibility, viability, and innovation of approach. For additional information regarding the special judges recognition categories check the Judges Special Recognition Award Resources page.

A brief description addresses each section of the plan, followed by the specific criteria that will be considered throughout the judging process of the Northeast Ohio Business Plan Challenge.

Overall Plan
The plan should have a professional appearance, provide credibility for the management team and business idea, represent the authors effectively, and have correct spelling and grammar.

For some suggestions from past Business Plan Challenge judges on how to write a solid plan, please review Plan-Writing Tips and Suggestions, as well.

Also, please review the binding and appearance requirements HERE. Your plan may be considered ineligible if these requirements are not met.

Entry form

For purposes of the Business Plan Challenge, an Official Northeast Ohio Business Plan Challenge 2005 Entry Form must be filled out and included as pages 1 and 2 of each business plan and the separately bound executive summary.

Title page
This page should include basic information on the plan, including the name of the business and the name or names of the individuals who are submitting the plan.

Table of Contents
For the purpose of the Northeast Ohio Business Plan Challenge, a table of contents must be included. This both conveys the organization of your thoughts and provides a map for the reader to help them access information quickly and easily.

Executive Summary

• Description:
  An Executive Summary should be clear, concise and convincing. It should be to the point and make you want to read more. For the purposes of the Northeast Ohio Business Plan Challenge, the executive summary cannot exceed two pages. The summary should prove credibility and contain at least the following information.

• Specific criteria:
  • Briefly describe the following:
    • Business strategy of the enterprise
    • Products/services offered
  • Identify the management team. Include description and qualifications, including past experience in the industry, and past successes that illustrate the abilities of the team members. (Fill this out in greater detail in the organization and management section)
  • Describe market size and characteristics
  • Support the business' capability to reach the market
  • Identify money or resources necessary to implement the plan
  • (For profit) Business sales and profits for at least three years or until positive cash flow, if longer than three years
  • (Non-profit) Funding strategy for three years or until positive cash flow, if longer than three years

Mission, Goals & Objectives Statement

• Description:
  A mission statement sums up the values, purpose and vision of a business in a focused statement(s). In addition, this section can address future goals and strategies for attaining them.
• Specific criteria:
  • Provide the mission statement for the organization and philosophy of how it will do business
  • State what the business does to attain its internal measure of success and serve the customer
  • Identify the long term goals and direction for the business
  • Lay out a realistic and thorough timeline for attaining its goals

Background Information

• Description:
  This section primarily presents the industry in which the business operates. It could also include information about its stage of development and general sustainability or growth strategy. It should address all of the following items that apply.
• Specific criteria:
  • Past and present industry trends that affect the business
  • Insight into where the industry is heading
  • Economic, social or political trends that affect the business' industry
  • (For profit) Indicate the current stage of development for the business development
  • (Non-profit) Indicate the current development stage of service programs or activities
  • (For profit) Outline a growth strategy
  • (Non-profit) Outline a sustainability strategy

Organization and Management

• Description:
  This section should contain the business' legal form of ownership. This section should also contain information on the people and structures that will make the business run smoothly and successfully. It should address all of the following items that apply.
• Specific criteria:
  • Legal form of ownership (i.e. corporation, Limited Liability Company, sole proprietorship, etc.)
  • If you are incorporated as a non-profit, under what section of the IRS code are you incorporated? If you are not incorporated, what is your legal status?
  • The responsibilities and qualifications of its management team
  • Highlight the strengths and weaknesses of its team
  • Estimate a timeframe for hiring additional personnel
  • Discuss the availability of personnel or staff needed for growth or organizational sustainability
  • Include an organizational chart
  • Explain the management hierarchy including the breakdown of responsibilities and job descriptions (include paid staff and volunteers for non-profit organizations)
  • Outline compensation for management team and employees
  • Discuss how records are kept, budgets and management controls
  • Identify ways that the organization will recruit and retain diverse workforce
  • Discuss an outside board of directors or advisors, if applicable, and the expertise they bring to the business
  • If applicable, identify ways that the organization will recruit a diverse board of directors or advisors and how they are appointed

Product/Service Line

• Description:
  This section should clearly identify what products or services the business will offer. It does not, however, need to give away proprietary information or trade secrets. It should address all of the following items that apply.
• Specific criteria:
  • Include an operations plan
  • Identify intellectual property owned by the business (this will be key for most technology category entrants, though other businesses may need to address this, as well)
  • If inventory is required for the business model, address inventory management and policies
  • Clearly define what products or services the business offers/will offer
  • Clearly define what benefit(s) the products or services provides to its customers
  • Include information about seasonality of products/services
  • Address patent or licensure issues, if applicable
  • Indicate where the product or service is in its life cycle
  • Where or when does the business anticipate future growth?
  • Discuss any new or additional products or services
  • Address suppliers and inventory management issues and challenges, if applicable
  • Identify a unique niche or role that the products or services will fill

Market and Marketing Plan

• Description:
  The marketing plan usually identifies the markets a business intends to serve, its position within the market, and lays out a plan for how the business will reach its target market. The marketing section also analyses competitors and makes a case for the need and the competitive advantage of the enterprise.
• Specific criteria:
  • Market Analysis
    • Clearly state the business' target market or customer profile (if applicable, non-profit organizations should state target revenue sources)
    • Describe the size of the target market
    • Target market information and assumptions should be backed up with research such as demographic information, statistics, etc. including sources for information. This can be research that the plan author does directly; in which case, the scope of the research should be described. It could also be research done by a third party, or a research firm that helps to prove the points in the plan, in which case, the source of the research should be cited.
    • Address future trends in the business' target market
    • Identify ways in which diverse cultural market trends have or will affect the business
    • Clearly define opportunities for growth within the industry
  • Competitive Analysis
    • Clearly identify the business' competitors
    • State the business' strengths and weaknesses compared to its competitors
    • Identify and discuss barriers to entry in the market
    • Describe any opportunities to collaborate with competitors or complementary businesses for mutual benefit
    • (Non-profit) If applicable, address why there is a need for a new organization, why the project can’t/shouldn’t be incorporated into an existing agency and provide information that shows funders support the idea of starting a new entity
  • Marketing Strategy
    • Include a marketing plan, including the following:
    • A marketing timeline
    • Marketing strategies and media choices
    • Identify the specific ways that the organization will target diverse markets
    • Costs associated with promotional tactics discussed
    • Outline of a marketing budget
    • If increased volume is projected, address how the business will maintain production/quality levels to meet customer orders/demand
    • Address a customer service plan
    • Explain and substantiate the assumptions the business makes about its marketing strategies
    • Describe how the business tracks or plans to track the results of its marketing
    • Address and substantiate pricing of products or services
    • Discuss position of business within the market
    • Describe how the product or service is or will be delivered to the market
    • Identify any opportunities for free advertising (public relations) of which the business may take advantage
    • If business is not a start up (older than two years), is there a person in the organization designated to handle the marketing for the business?

Operational Plan

• Description:
  The operational plan describes the overall process that runs the business model. This is also where the business addresses succession plans or exit strategies for the current management or for the business as a whole.
• Specific criteria:
  • Describe the process by which the business operates. It isn't necessary to provide deep details of the operation, but to provide enough insight to the reader to understand the process and provide credibility for the plan and the projections made in it.
  • If applicable, address the processing of orders and fulfillment
  • Include milestones and an estimated timeframe for meeting them
  • Identify exit strategies, such as taking the business public, buying out investors, or selling to another business
  • Describe the organization’s ethical and accountability standards

Financial Statements & Projections

• Description:
  The financial section gives the quickest summary of where the business is and where it wants to go. In this section, the business lists the financial requirements for launching or growing the business. The financial section is comprised of cash flow projections, financial statements and supporting financial information.
• Specific criteria:
  • Include a break-even analysis
  • List assumptions made in the financials
  • Ensure that most normal business expenses are listed and taken into account
  • Include at least the following statements to illustrate the financial feasibility of the business:
  • Income statements, by month in year 1, by quarter in years 2 & 3 and yearly for any following years until the business shows a profit, or until a non-profit organization shows a sustainable operation
  • Balance sheet
  • Statement of cash flows, by month in year 1, by quarter in years 2 & 3 and yearly for any following years until the business shows a profit, or until a non-profit organization shows a sustainable operation
  • Make sure that assumptions from other aspects of the plan are incorporated into the financial assumptions
  • Address the assets required to operate the business and how those assets will be acquired
  • If the business model creates accounts receivables, describe the process for handling these
  • Address the salary of the business owner, making reasonable estimates for both ranges and timeline for when he/she will start to receive compensation
  • Financial backing already received by the business
  • (For Profit) Describe the business' strategy to cover shortfalls in cash
  • (Non-profit) List a breakdown of funding sources and the timeline for each

  The Competition is intended for firms that are not actively considering substantial venture capital at the present time, nor have received substantial venture capital in the past (6 months). Therefore, companies that have received a private investment of $500,000 or greater (in the past 6 months), or are currently considering a Term Sheet of $500,000 or greater are not eligible for the 2005 Northeast Ohio Business Plan Challenge.

Appendices

• Description:
  Appendices are documents that provide support for a business plan, but would not be appropriate to include in the body of the plan itself. Some examples of these would be:
  • Resumes of the management team
  • Market research data or statistics
  • Pricing lists
  • Competitor Information
  • Letters or documentation from current or potential customers that help to establish a market for the product
  • Marketing pieces

Required Supporting Documents for Non-profit Category Business Plans

• Articles of Incorporation
• Current Internal Revenue Service tax-exempt determination letter confirming section 501(c)(3) and 509(a)(1, 2, or 3) of the tax code.
  • If the name of the organization differs from the name on the IRS determination letter, please provide an explanation of the difference;
  • If the nonprofit organization operates under the auspices of another nonprofit acting as a fiscal agent, please provide a current IRS tax-exempt letter of the fiscal agent
• Statement of Continued Existence, if applicable
• Organizational Bylaws
• Board membership roster
• Proof of insurance
• Proof of appropriate licensing/certification from state or other accrediting bodies
• Disclosure and status of any pending lawsuits or other adverse legal actions