your business plan is a to your success. follow the road map to avoid termination
TRANSCRIPT
Your Business Plan is aYour Business Plan is a
to your Successto your Success
Follow the Road MapFollow the Road Map
To avoid TerminationTo avoid Termination
The Role of Your Business The Role of Your Business Plan is to give the potential Plan is to give the potential
investors:investors:
A Description and Analysis of the Business Situation
A Proposed Marketing Plan for your business.
A Proposed Financial plan for beginning your
business.
COMPANY NAMECity, State Zip
Student’s NameBusiness Plan
Date
Title Page
STATEMENT OF PURPOSE
States the objective of this business plan for your business Keep it simple Should be concise
Sample: This plan will be the operating guide and policy guide for XYZ, Inc.
If used as a financial proposal, the objective should be in greater detail.
Statement of Purpose
Executive Summary
The purpose of the executive summary of the business plan is to provide your readers with an overview of the business plan.
Executive Summary
Executive Summary Therefore, your business plan’s executive summary will include Therefore, your business plan’s executive summary will include
summaries of: summaries of: A description of your company, including your products
and/or services Your mission statement Your business’s management The market and your customer Marketing and Sales Your competition Your business’s operations Financial projections and plans
Remember this is a summary. Keep it as brief as possible. You will explain in detail later in the plan.
Executive Summary
The executive summary should end with a summary statement, a “last kick at the can” sentence designed to persuade the readers of your business plan “why is this a winning business?”
Executive Summary
Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation
What type of business is this? What problem are you solving? How does your product/service solve the problem? How does this create financial value for your
company and its investors?
Content – Part 1
Rationale and marketing research on the acceptability of the products and services
An overview of the industry sector that your business will be a part of, including industry trends and major players in the industry. This section of the business plan will also include a summary of your business's place within the industry.
Industry OverviewIndustry Overview What is the size of your industry?What is the size of your industry? Who are the major players in this industry?Who are the major players in this industry? What national/economic trends have affected this What national/economic trends have affected this
industry and how?industry and how? What national/economic trends might affect it in What national/economic trends might affect it in
the the future and how?future and how?
Content – Part 1
Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation
Introduction and Self-Analysis.
What makes you capable of operating this business
and being successful.
Content – Part 1
Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation
Analysis of the Business Opportunity. Where will the business be located? Who will be the customer base? What is your competitive advantage in the
market place? How does your customer benefit?
Content – Part 1
Market AnalysisMarket Analysis This is an examination of the primary target market for your
product or service, including geographic location, demographics, your target market's needs and how these needs are being met currently.
The competitive analysis section can be the most difficult section to compile when writing a business plan. Before you can analyze your competitors, you have to investigate them.
You need to know: You need to know: What markets or market segments your competitors serve;What markets or market segments your competitors serve; What benefits your competition offers;What benefits your competition offers; Why customers buy from them;Why customers buy from them; And as much as possible about their products and/or services, pricing, And as much as possible about their products and/or services, pricing,
and promotion.and promotion.
Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation
Content – Part 1
Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation
Proposed Organization
List the CEO and key management by name
Content – Part 1
Description & Analysis of the Description & Analysis of the Business SituationBusiness Situation
PROPOSED ORGANIZATIONPROPOSED ORGANIZATION
Types of ownershipTypes of ownership Sole proprietorshipSole proprietorship PartnershipPartnership Corporation, or limited liability company (LLC). Corporation, or limited liability company (LLC).
There's no one choice that fits every business; your job is to pick the form that best meets
your needs
Content – Part 1
Description & Analysis of the Description & Analysis of the Business SituationBusiness SituationPROPOSED ORGANIZATIONPROPOSED ORGANIZATION An Organizational Plan is basically a “to do” list for an
organization. It lists out the plan of work, programs, and organizational
growth over a period of time - six months, a year or five. The tasks involved, who is responsible for them, and
when they’ll be done. People reading your business plan will be looking to see
not only who's on your management team but also how the skills of your management and staff will contribute to the bottom line.
Content – Part 1
Proposed Marketing/Promotion Plan
This marketing plan section establishes the direction your business is going to take in order to promote your business, attract
customers, exploit any identified opportunities and make a profit.
Content – Part 2
Proposed Marketing/Promotion Plan
Proposed Product/Services What are you going to sell? What position you are going to take in the
market? (For example, high quality/high price or low quality
low price high volume)
Content – Part 2
Proposed Marketing/Promotion Plan
Pricing Policies What price you are going to set? How much profit you think you are going to
make at the price?
Content – Part 2
Proposed Marketing/Promotion Plan
Personal Promotion How you and your sales staff are going to
promote your business? What level of service you are going to
provide?
Content – Part 2
Proposed Marketing/Promotion Plan
Non-Personal Promotion How will you appeal to the public? What promotional plans will you use?
Content – Part 2
Proposed Marketing/Promotion Plan
Place Decisions Where you will distribute your goods
and/services? Where will you obtain the materials or other
items needed for your business? What is you channel of distribution?
Content – Part 2
Proposed Financial Plan
Basically, the financial plan section of the business plan consists of three financial statements:
• The income statement• The cash flow projection and • The balance sheet
and a brief explanation/analysis of these three.
First, you need to gather together some of the financial data you'll need to prepare these financial statements for your business plan by examining your expenses. Think of your business expenses as broken into two categories:
Your start up expenses and Your operating expenses.
Content – Part 3
Proposed Financial Plan
Projected Year 1 Income Statement
by month
Content – Part 3
Proposed Financial Plan
Projected Balance Sheet
Year 1 Beginning Balance Sheet and
Year 1 Ending Balance Sheet
Content – Part 3
Proposed Financial Plan
Projected Cash Flow Statement
Projected Year 1 Cash Flow Statement
by month
Content – Part 3
Proposed Financial Plan
Where will you go to get the money?Entrepreneur’s Entrepreneur’s
personal personal resourcesresources
Financial Financial institutionsinstitutions
Angel investorsAngel investorsUnusual Unusual
resourcesresources
Financing Financing OptionsOptions
Venture Venture capitalistscapitalists Public offeringPublic offering
Business Business development development
programprogram
Content – Part 3
Proposed Financial Plan
Capital Repayment Plan
•Where are you getting the money from?•What is the interest/loan arrangement?•How and when will you retire the debt?
Content – Part 3
““If you don’t know where you are going you If you don’t know where you are going you may end up somewhere else”. may end up somewhere else”. Casey StengelCasey Stengel