Why a Business Plan is Important

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The Business Plan

• Describes - what your business will produce

- how will you produce it

- who will buy your product or service

• Explains - who will run the business

- who will supply the goods

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The Business Plan

• States - how you win customers from your competitors

- how do you keep customers

• Provides - detailed financial information

- how will your business earn a profit

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A business plan serves 3 purposes

• Explains the idea behind your business and spells out how your product or service will be produced and sold.

• Sets specific objectives and describes how your business expects to achieve them.

• Describes the backgrounds and experience of the people who will be running the business.

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Importance of a Business Plan

• The business plan makes you think about all aspects of your business.

• The business plan helps you secure financing for your business.

• The business plan helps you communicate your ideas to others.

• The business plan serves as a tool for managing your business.

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Assignments Road to Success Assignment: Success does not come quickly for most

entrepreneurs. It takes time, perseverance, and hard work for most individuals to success. Walter Elias Disney is a good example of an entrepreneur who took the idea of animated films and developed an entertainment empire through hard work and perseverance. Put the names of 30+ entrepreneurs in a hat for students to select. Ask students to research the entrepreneur they selected and design a mural that shows the struggles/challenges that the entrepreneur overcame to be successful. The mural should begin with the creative idea and continue through growth of the entrepreneur’s business idea.

Business Proposal Presentation: Ask students to propose a 200-room luxury hotel/convention center for the new Town Center for a growing upscale suburb of a major city. The proposal should include a description of the hotel, projected customers for the hotel, business that the hotel will attract to the community, and sources of finance for the new business. The presentation should also include what financial institutions and venture capitalists will provide startup funds for the hotel. The Internet and other resources will provide valuable information about major hotel chains and the procedure for building an additional hotel. Students will present their information to the class in the form of a PowerPoint presentation.

Research that Community: Entrepreneurs must conduct thorough research before

deciding to locate a business in a particular community. The research is conducted to learn about the demographics for the community, traffic flow, tax advantages, growth potential, crime rate, schools, workforce, and other factors. Ask students to choose a city for a selected business. Then students will design an information folder about the city. The purpose of the marketing folder is to attract businesses to the community.

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