The Business Plan

Apparel Development 2Objective 4.02

Business Plan Purpose

Describes the new businessObtain financing ****FeasibilityA “living guide” to the business (road map**)

Business Plan is a Manual

**To help during:DesignStart-upoperating

Parts of the Business Plan

Executive Summary

Product or Service Plan

Management Team Plan

Industry Market Analysis

Operational Plan

Organizational Plan

Marketing Plan

Financial Plan

Growth Plan

Executive Summary

Time to persuade potential investorsKeep it simpleWhat are you going to do?

Product/Service Plan

What are you going to offer?Be descriptive

Management Team Plan

Who will be in charge of what?Job DescriptionsSkills

Industry/Market Analysis**

CustomersCompetitionIndustry

Operational PlanProcessDelivery – distributionLogistics** - details about how the product gets to the customerProduct development

Organizational Plan

Management PhilosophyPersonnelEmployment policies

Marketing/Promotion Plan **

ProductPricePromotion = AdvertisingPlace = Distribution

Financial Plan **

Projected Income / Cash Flow Statements

Repayment of Borrowed Funds

Putting it all Together

The final decision to start a small business is made after the completion of the business plan **

Assessing Feasibility

Feasibility AnalysisMarket NicheTarget Customers

Feasibility Analysis

**consider what will actually work when choosing a class projectIs the business decision possible or within reason****process of testing a business idea

Market Niche

Don’t try to be everything to everyoneSpecialize

Target Customers

The people who are most likely to buy your specific product or service **

Choosing Your Product

Considering Options Product Development

Outsourcing Demand

Product Mix Prototype

Product Development

**Moving an idea from design to model**Highest risk area for a business – no money coming in and it might fail

Steps in Product Development

1. Opportunity Recognition

2. Concept Investigation

3. Inspections4. Prototype

Building

Proto-type

A working model of a product**

NOT sample

Outsourcing

**process of hiring specialists to do specific work instead of using company employees

OutsourcingUsing someone else to do part of the work you aren’t able to do**gives entrepreneurs opportunities to supply services to other companies

Product Standards

**developed to benefit the customer

Quality Control **system to verify and maintain desired product standards**responsibility of entire production team