Business plan for Virtual Centre of Excellence


Executive Summary

Company information

  • Name: initial: Alliance for Permanent Access
  • Legal Structure: currently: Dutch Foundation
  • Current members - see APA site

Amount of investment requested

No capital investment needed - annual membership fees

Expected terminal value


Description of market opportunity

Digital preservation is being increasingly recognised as important - this VCOE will provide much needed services and expertise

Objective reasons why the market opportunity can be exploited by this particular team

The current APA and its members form the core of the *APA*RSEN project which is tasked with setting up the VCOE

Organizational background

Number of Employees

Annual sales figures


Key product lines


Location of facilities

Small APA office plus distributed membership

Current stage of development

Corporate structure

  • Non-profit organization
  • Executive Board
    • Chair
    • Vice-chair
    • Treasurer

Names of the majority investor, if any


Founding date

Deed of Formation: 2008

Major successes

Strategically valuable learning experiences

Management team

Director plus Executive Board

Board members

Elected by the membership of the APA



Senior managers

Managing partners

Head scientists and researchers

Marketing plan

NOTE Note The marketing plan has five objectives: If the product is a new product with no existing market, one must identify all substitute products. For each significant substitute product one must explain:

Name, features, why substitute, why proposed product better

Switching costs and why new product justifies switching

Expected adoption dynamics

Expected role once market begins to develop (see above for existing products)


Chosen Price points

Proposed Pricing strategy

Demand management

NOTE Note In economics, demand management is the art or science of controlling economic demand to avoid a recession. The term is also used to refer to management of the distribution of, and access to goods and services on the basic of needs. An example is social security and welfare services. Rather than increasing budgets for these things, governments may develop policies that allocate existing resources according to a hierarchy of need. Distribution/Positioning

Distribution strategy

List of major distributors

Current status of negotiations

Promotion and brand development

Promotion strategy

Operational plan

NOTE Note The plan outlines how one would service their clients cost effectively.

Manufacturing/deployment plan

Supply chain requirements

Production inputs

Facility requirements - size, layout, capacity, location

Equipment requirements

Warehousing needs for raw materials, finished goods

  • Space requirements

Information and communications technology plan

Systems needed

  • Operations: Billing, HR, SCM, CRM, Knowledge bases, etc.
  • Websites: internal, public

Security and privacy requirements

Hardware requirements

Off-the-shelf software needed

Custom development requirements

Staffing needs

List of roles

Management structure

Head count approval

For each role

  • Job descriptions
  • Number of employees
  • Proposed compensation
  • Availability

Training plan

Training requirements

NOTE Note Training requirements should look to address two issues - a benefit to motivate staff and developing the capability of the organisation to deliver the business objectives. Ideally all training requirements should be based on as an assessment of the business plan objectives, the required competence and capability to deliver these objectives and understanding of the current capacity and capability of the organisation. Simple question to ask to assess the appropriateness of the training - as a result of the training how much better will the organization be at delivering its objectives. Remember that training covers a wide range of activities from project work and on the job training to professional qualifications. Most learning takes place outside of formal training activities.

Intellectual property plan

Intellectual property inventory

Portfolio development plan

Acquisition plan

NOTE Note Some business plans gain competitive advantage by buying companies up and down the value chain. Some gain competitive advantage by buying up companies and consolidating them. Sometimes a business plan will seek to earn a superior return by adding superior management talent to an existing weak company. For more information see Mergers and Acquisitions. When acquisitions form a major part of the business strategy, the acquisition plan needs to be included in the business plan.

Acquisition strategy

Proposed acquisition targets

Effect on market structure (if consolidation plan is being proposed)

Organizational learning plan

NOTE Note The organizational learning plan discusses what lessons will be learned from the marketing, operational, and finance plans and how those lessons will be consolidated to gain strategic advantage.

Market sensing - organization's method for collecting information about customers (George Day)

Strategic Staircase - the accumulation of future competencies by building on existing competencies. (Michael Hays, Costas Markides)

Cost allocation model

NOTE Note If variable costs play an important role in the business plan, it may be helpful to include a cost allocation model. This is particularly true if one has a unique business model that creates competitive advantage by transforming traditionally fixed costs into variable costs[citation needed].

Fixed cost

Variable costs Operational plan

NOTE Note The plan outlines how one would service their clients cost effectively.

Financial plan

Current financing

  • Key investors or owners
  • Angels, friends, and family
  • Existing loans and liabilities
  • * Terms, obligations

Funding plan

  • IMF
  • World Bank

Financial forecasts

  • Sometimes called pro formas
    • Balance sheet
    • Income statement
    • Cash flow statement
  • 1-3-5-7 year projections (depends on length of project)
    • For loans, repayment period determines length of projections, i.e. a six month loan doesn't need seven year forecasts
    • For investments point at which returns stabilize (terminal value) determines length of forecast
  • Annual, quarterly, and monthly versions should be provided
  • Graphs of key values often helpful: gross revenue, EBITDA, NPV, etc.
  • Financial portions of the marketing, asset development, and operations are often placed in this section rather than in the section discussing the plan. They are viewed as elaboration on the various line items in the pro-formas.
Topic revision: r1 - 2012-02-06 - DavidGiaretta
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