a simple guide to the effective business plan

Wri$ng  an  Effec$ve  Business  Plan  

Amelia  Lobo,  MBA  

ISED  Ventures    

ISED  Ventures  envisions  vibrant  Iowa  communi$es  where  individuals  and  families  have  the  opportunity  to  build  financial  stability  and  

success.  

•  Financial  Educa$on  &  Counseling  •  Felicia  Chumley,  Advisor  

•  Small  Business  Educa$on  &  Support  •  Women’s  Business  Center  •  Amelia  Lobo,  Director  •  Fernando  Aveiga,  Business  Advisor  

•  www.isedventures.org  •  Facebook:  facebook.com/isedwomensbusinesscenter  

Services  •  Personal  financial  management  

•  Pillars  of  Financial  Success  •  Individual  help  on  budge$ng,  dealing  with  debt,  and  improving  your  credit  

report  

•  Free  tax  prepara$on  •  Must  make  less  than  $57,000/year  •  No  business  loss  •  Personal  taxes  plus  Schedule  C  (Sole  Proprietor/LLC)  •  Review  of  prior  years/late  filing  

•  Small  Business  •  Educa$on:  Business  Planning/Special  classes  •  One-­‐on-­‐one  counseling  

The  Business  Plan  

The  Execu$ve  Summary  •  2  Pages,  tops  •  The  value  proposi$on  •  What  you  do  •  How  you  make  money  •  Why  customers  will  pay  

•  Wri\en  to  share  with  investors?  •  Include  the  $$  ask  

•  Write  the  summary  last  

Market  Opportunity   Compe$$on  

Your  Team  Business  Model  

•  Target  Market=Who  are  you  going  to  sell  to?  •  Who  are  they?  •  Loca$on/income/Taste/Age/Sources  of  influence  

•  How  many  are  they?  •  Sources:  industry  associa$ons,  census  data,  other  business  owners  

Market  Opportunity  

•  Who  are  they?    •  What  do  they  sell?    •  How  much  market  share  do  they  

have?    •  Why  will  customers  choose  your  

product  or  service  instead  of  theirs?    

•  What  are  the  barriers  to  entry?    •  Indirect  compe$tors  

Compe$$on  

•  Func$onal  Areas-­‐  who  is  responsible  for  •  General  Management  •  Financial  Management  •  Marke$ng  •  Sales  •  Human  Resources  

•  Member  experience  •  Outside  advisors  

Your  Team  

•  Detailed  descrip$on  of  all  revenue  streams  •  Product  sales  •  Adver$sing  •  Licensing  •  Cost  structure  

•  Salaries,  rent,  inventory,  maintenance  

•  Also,  include  names  of  key  suppliers  or  distribu$on  partners  

•   List  &  jus$fy  assump$ons  and  provide  a  jus$fica$on  for  them    

Business  Model  

Financial  Projec$ons    

Cash  Flow  Income  &  Expense  Balance  Sheet  

The  Exit  Strategy  •  How  are  investors  going  to  recoup  investment?  •  Business  Sale?  •  Going  Public?  

 •  Your  business  has  value  but  you  have  to  prepare  to  transi$on  out  •  Sale  to  employees?  •  Others?  

Upcoming  Educa$onal  Opportuni$es  

•  BusinessLaunch!  •  10  Week  Business  Planning  Class  •  Starts  Feb.  25th  •  5:30-­‐8:30PM  (Tuesdays)  •  $300/scholarships  available  

•  BusinessPrep!  •  Ongoing-­‐  required  for  Business  Launch!  •  Self-­‐Evalua$on  •  $10  

•  Understanding  the  Healthcare  law  and  the  SHOP  marketplace  for  small  business  •  March  5th  and  8th  •  Free  

•  Other  classes  listed  on  our  website    

Contact  us  ISED  Women’s  Business  Center  

www.isedventures.org  515-­‐283-­‐0940  

alobo@isedventures.org  faveiga@isedventures.org  

Facebook:  www.facebook.com/isedwomensbusinesscenter  Join  our  newsle\er  for  informa$on  on  business  opportuni$es,  

upcoming  classes  and  other  resources.