1 before you begin... in order to develop a business plan, you need to have an idea for a business....
TRANSCRIPT
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Before You Begin . . .
In order to develop a business plan, you need to have an idea for a business. Section 6.2, “What Is a Business Opportunity,” (pages 145-160 in your textbook) helps you develop and evaluate an idea for your own business.
When you see text in brackets [like this], fill in your own writing or data. Delete the brackets in the slides you present.
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before presenting
Read Notes at bottom
before you work on each
slide.
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1. [Describe your product or service. Make sure to include your company’s name.]
2. [What problems does the product or service solve (or what demand does it meet)?]
3. [How is your product different?]
4. [Why should your potential investorscare?]
The 30-Second Pitch/Hook
Example: "Do you use a flash memory drive? What if your car had a USB port and you could play music through it? That’s what my company, Play-On, is building. . . .”
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presenting
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[Business Name][Logo]
[Entrepreneur’s Name][Grade]
[Age]
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Mission Statement Mission Statement
[A mission statement is a company’s constant reminder to its employees and customers of why the company exists.]
Opportunity [What is your product or service? How does
it work? What are its unique features? Walk us through what the customer sees/receives.]
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Business Profile Type of Business
[Is yours a Service, Retail, Manufacturing, or Wholesale business?]
[Describe your product/service in terms of your type of business and your customer. (Example: “Company Name is a manufacturing company making baskets for sale to wholesalers.”)]
Legal Structure [Sole Proprietorship, Partnership, C
Corporation, SubChapter-S, Limited Liability Company, or Not-for-Profit Corporation?]
[Why did you select this legal structure?]
Insert an image of your
product or service
here.
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Qualifications
I’m qualified to run this business because:
[Enter reason #1 here.]
[Enter reason #2 here.]
[Enter reason #3 here.]
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Market Analysis (Example)
Industry Name Special food services
Industry Size $31,130,659
77,239
19,773
24,716
Total Population San Francisco, Mission DistrictZIP code: 94110
Target Market Adults, both male and female, ages 18-34, with an average household income of greater than $35,000
Potential Market Size
Based on our survey of 30 individuals from the target market, we believe our potential market size is 80% of the target market. 90% eat out 3+ times per week 80% don’t have enough time to
cook meals for themselves 80% said they would try a personal
chef service if one were available in their neighborhood
Total Population
Target Market
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Potential Market Size
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Market AnalysisIndustry Name
[What industry are you in? (http://www.bizstats.com)]
Industry Size [How much is being spent in your industry? (http://www.bizstats.com/industry-markets.asp)]
Total Population
[Where are you planning to market you product/service? Is there a particular area, city, neighborhood, or ZIP code(s)?]
Target Market [What gender are you targeting (if applicable)? What age group are you targeting? What is the average household income of the group you’re targeting?]
Potential Market Size
[Survey your target market. What percentage of them would be willing to try your product/service? Why?]
[?]
[?]
[?]
Total Population
Target Market
Potential Market Size
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Demographics [The age, gender,
occupation, and education of your customers. Economic factors, such as household income, family composition, and size.]
Geographics [The size of the area,
density, and location of your customers. Where do they live, work, go to school, or shop?]
Psychographics [The general personality,
lifestyle, sports, hobbies, music preferences, and other free-time activities.]
Buying Patterns [The purchasing patterns
and buying behavior of your customers, including the rate of use, repetition of purchases, benefits sought, brand preferences, and brand loyalty. Also the purchasing behavior (impulsive or cautious, using cash or credit card).]
Target Market Segment
Insert imageof aconsumer.
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Competitive Advantage
[Your Business]
[Competitor A]
[Competitor B]Factors
[?]
Quality of Product/Service
Price
Location
Reputation/Brands
Unique Factors/Knowledge
[?] [?]
[?] [?] [?]
[?] [?] [?]
[?] [?] [?]
[?] [?] [?]
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Marketing Mix
People[Enter your marketing strategy for People.]
[Enter your marketing strategy for Promotion.]
[Enter your marketing strategy for Place.]
[Enter your marketing strategy for Product.]
[Enter your marketing strategy for Price.]
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Promotional Mix
Advertising[List plans for
advertising, if any.] [$]
Publicity[List plans for
publicity, if any.] [$]
Personal Selling[List plans for
personal selling, if any.]
[$]
Sales Promotion[List plans for
personal selling, if any.]
[$]
Other
[List plans for visual merchandising orpublic relations, if
any.]
[$]
Total Monthly Promotional Expense
[$]
Promotional ExpenseMonthlyAmount
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Cost of Materials/LaborMaterials
Material Description Cost/Total Quantity Cost per Unit
[Description] [$] [$]
[Description] [$] [$]
[Description] [$] [$]
[Description] [$] [$]
Total Material Cost per Unit [$]
LaborLabor Cost per Hour Time (in Hours) to
Make One UnitLabor Cost per Unit
[$] [Time] [$]
Total Labor Cost per Unit [$]
COGS (per Unit) [Total Materials Cost per Unit + Total Labor Cost per Unit]
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Economics of One Unit
Selling Price (per Unit) [$]
COGS (per Unit) [$]
Other Variable Expenses (per Unit) [$]
Total Variable Expenses (per Unit) [$]
Contribution Margin (per Unit) [$]
Description of One Unit of Sale:
[Describe a unit of sale. What is the customer actually buying from you?]
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Average Monthly Fixed Expenses
Fixed Expense Average Monthly Expense
Insurance [$]
Salaries of Employees [$]
Advertising [$]
Interest [$]
Depreciation [$]
Utilities (Gas, Electric, Telephone) [$]
Rent [$]
Other Fixed Expenses [$]
Total Average Monthly Fixed Expenses [$]
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Time-Management Plan
Schedule for a Typical WeekTotal Hours in a Week = 168
43
39
42
44
36 38 40 42 44
Hours
School
New Business
Work
FreeTime
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Monthly Sales Projections
First Year Total Units Sold
[Units]
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Monthly Break-Even Units
In an average month, the company will begin to make a profit after selling units.[?]
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Projected Yearly Income Statement
First YearA Selling Price per Unit [$]
B Number of Units Sold [Number of Units]
C Total Sales [A × B]
D Variable Expenses[Variable Expense per Unit × B]
E Contribution Margin [C – D]
F Fixed Operating Expenses
[Monthly Fixed Expenses × 12]
G Pre-Tax Profit [E – F]
H Taxes @ 15% [G × 0.15]
I Net Profit [G – H]
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Start-Up InvestmentStart-Up Expenditures
Item Where Will I Buy This? Cost
[Item] [Vendor/Location] [$]
[Item] [Vendor/Location] [$]
[Item] [Vendor/Location] [$]
[Item] [Vendor/Location] [$]
[Item] [Vendor/Location] [$]
Total Start-Up Expenditures [$]
Cash ReservesEmergency Fund [$]
Reserve for Fixed Expenses [$]
[A + B + C]Total Start-Up Investment
B
A
C
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ROS & ROIROS: Return on Sales
DollarEquivalent = [$0.00]
ROI: Return on Investment
DollarEquivalent = [$0.00]
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Financing Strategy
Source Amount Debt Equity Gift
Personal Savings [$]
Relatives/Friends [$] [$] [$] [$]
Investor [$] [$] [$]
Partner(s) [$] [$] [$]
Totals [$] [$] [$] [$]
[$]Total Start-Up Investment
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Business Responsibility& Philanthropy
Business Responsibility [Explain how you will incorporate business
responsibility into your marketing plan.]
Philanthropy [Describe how your business will give back to
the community or support a cause in which you believe.]
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Business & Personal Goals
[Describe the next steps you need to take to make your business fully operational.]
[Explain how you will improve or maintain the quality of your product/service.]
[Explain how you will expand the business (hire employees, attract new customers, purchase a storefront, and so on).]
[Describe how big your business could get.]
Business Personal
[Describe education or training you could get to help with your business.]
[Mention anyone you could seek out as a mentor.]
Sh
ort
-Te
rmL
on
g-T
erm
[Indicate how long you plan to run the business. Describe your exit strategy, if you have one.]
[Describe how your experience with this business will prepare you for your career.]
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[Enter your slogan ]
Thank you for your consideration.
[Enter company name]