foundation communities community tax center. i. introductions ii. overview of course iii. why...
Post on 20-Dec-2015
212 views
TRANSCRIPT
PART 1: LAYING THE FOUNDATION
I. IntroductionsII. Overview of CourseIII. Why Develop a Business Plan?IV. Strategic Planning – A Brief
OverviewV. Components of Your Business
Plan Your Plan’s “Curb Appeal”
WHAT IS A BUSINESS PLAN ?
Summary of your business and the future you hope to create
Realistic but conveys energy and optimism
Step by step plan to achieve your goals
“A goal is a dream with a deadline” – Steve Smith
WHY DO A BUSINESS PLAN?
Clarifies direction for you and your team
Foundation for raising capital A way to track progress of
your business Protects your financial future
GOALS
RESOURCES
CONSTRAIN
TS
STRATEGIC PLANNING
Success Occurs at the Intersection of: Goals, Constraints, and Resources
GOALS CONSTRAINTS RESOURCES
Own My Own
Business
Financial Find Money: Savings/EquityBorrow, etc.“Bootstrap”
Legal: Permits, Licenses etc.
Become informedConnect with SBDP Staff
Talent/Education/Ability Take CoursesHire TalentWork Hard
Environmental Mitigate, Choose Another Site
BUSINESS PLAN TIPS
Takes 40 + hours to complete, 20 – 30 pages maximum
Be concise; less is more Appearance counts – easy to
read, professional
COMPONENTS OF YOUR BUSINESS PLAN
Cover Sheet Table of Contents Executive
Summary Company Overview Product and
Service Description Market Analysis
Marketing Sales Strategy
Internet Strategy
Management & Personnel Team
Financial Projections
APPENDIX
COVER SHEET
Introduces your business to prospective funders
Keep it clean and simple Full legal name of business Location: Address, Street, City,
State, Zip Telephone numbers and email
addresses Main contact person(s)
TABLE OF CONTENTS
Road map for prospective Funder or Investor
Statement about you Organized Visionary Structured
EXECUTIVE SUMMARY
Write this section last One section that everyone will
read Must capture and hold interest
of reader Encapsulates the entire
Business Plan Shows clarity of your goals
Who you are What you want Where you are going
MISSION STATEMENT
Who You Are What You Do (Products &
Services) For Whom (Customers) Why (What your Customer wants) “It’s not what you sell, it’s what
you stand for” – Roy Spence
FRITO LAY MISSION STATEMENT
Satisfy our Customers by providing fresh, tasty
snack products throughout all
segments of our business
COMPANY OVERVIEW
Provides information on your company including where you’ve been
How your company fits into your industry and marketplace
Your growth potential Economic trends that are
favorable to your company
BUSINESS ENTITIES
Sole Proprietorship General Partnership Limited Partnership (LP) Limited Liability Partnership (LLP) Limited Liability Company (LLC) Corporations
C Corporation S Corporation
PRODUCT & SERVICE DESCRIPTION
Specifics on what your business does Service Industry Product Sales NIC/SIC Code (
http://www.osha.gov/pls/imis/sic_manual.html)
Competitive Comparison Pricing Strategy
PART 2: YOUR BUSINESS PLAN
Market Analysis Marketing and Sales Strategy Internet Strategy Marketing is the process of
creating and retaining customers in large enough numbers to be profitable
MARKET ANALYSIS
Market Segmentation –who will buy your products
Define target market strategy How current market is
underserved or not served effectively
Competition & buying patterns Define a unique niche within
the existing marketplace
MARKETING & SALES STRATEGY
Science of planning for and executing a promotional campaign
Develop marketing strategy Product Price Place Promotion Budget
INTERNET STRATEGY
Sell products or information only
Internet sales integrated with inventory
Website Viral Marketing / Facebook
MANAGEMENT TEAM -EXTERNAL
EXTERNAL CPA: with Small Business Experience Attorney: With Small Business
Experience Financial Planner: with Small Business
Experience Board of Directors
PART 3: FINANCIAL PLAN
Start Up Costs Break Even Analysis Projected Profit and Loss Projected Cash Flow – The
Lifeblood of Your Business!
BREAK EVEN ANALYSIS
The point at which a businesses
is neither making a profit nor experiencing a loss
BREAK EVEN ANALYSIS: FIXED COSTS
• Costs that generally remain the same month to month and are not dependent upon the number of Sales.
• What you would have to pay regardless of whether you had any customers walk in.
BREAK EVEN ANALYSIS: FIXED COSTS
Personnel (with exceptions) Lease/Mortgage Utilities Debt Financing Insurance
BREAK EVEN ANALYSIS: VARIABLE COSTS
• Costs that vary directly with:• the number of units sold, or • the number of clients served
BREAK EVEN ANALYSIS: FIXED COSTS SAMPLE (CLASS PROJECT)
Designer Bags Fixed Costs Variable Costs Variable Income Break Even Profit
CASH FLOW STATEMENTS
Shows the effects on Cash of operating and Financing Activities
Indicator of Ability to Generate Positive Cash Flows Pay Liabilities Pay Dividends
Could indicate need for additional Financing
BALANCE SHEET
Provides a ‘snapshot’ of a business’s financial position at a given point in time
Assets: What a business Owns Liabilities: What a business Owes Net Worth (Equity)
NET WORTH = ASSETS – LIABILITES
BALANCE SHEET: ASSETS
Cash Inventory Receivables Prepaid
Expenses Plant &
Equipment
Office Equipment
Machinery Land &
Facilities Goodwill
BALANCE SHEET: LIABILITIES
Current Liabilities Current Debt Payables Credit Cards
Long Term Liabilities Long Term Debt
(Loans) Payments to
Investors
EquityPaid in CapitalRetained Earnings
PROJECTED CASH FLOW:
THREE THINGS TO REMEMBER:
1. Cash is King2. Cash is King3. Cash is King
Class Test
FINANCIALS: PRACTICAL PLANHOW/WHERE DO I START?
Spreadsheets (2) Start up Costs (what are the
things I need to get started and how much do they cost?)
12 Month Cash Flow (Detailed Line Item Income and Expense)
Read Sample Plan through a couple of times highlight and make notes!
APPENDIX
Keep it uncluttered! Biographies and resumes of key
team Supporting documents Brochures, flyers, magazine
articles References
Past lenders Suppliers Trade creditors
BUSINESS PLANNING RESOURCES
City of Austin SBDC Gold Book
Services available through other organizations
Silver Book Networking Resource Guide for
Small Businesses Bronze Book
Resource directory of local women and ethnic minority professional associations
HOW TO WRITE A BUSINESS PLAN RECAP
Components of a Business Plan The Planning Process Researching Target Markets,
Demographics, Competitors Financials: Start Up Costs, Cash
Flow, Break Even, Balance Sheet Relate Business Planning
Components to Own Business Other Resources for Assistance