Business Plans

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Business Plans

• Good Business Plans are Practical
• Taken from http//www.bplans.com/hurdleonline
• http//www.sba.gov/starting/indexbusplans.html

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Planning is a Process
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Four Elements Supporting Successful Plan
Implementation
1. Is the plan simple, easy to understand and to
act on? Does it communicate its contents easily
and practically? 2. Is the plan specific? Are
its objectives concrete and measurable? Does it
include specific actions and dates of completion,
specific persons responsible and specific
budgets?
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Four Elements Supporting Successful Plan
Implementation (cont.)
3. Is the plan realistic? Are the sales goals,
expense budgets, and milestone dates realistic?
Nothing stifles implementation like unrealistic
goals. 4. Is the plan complete? Requirements of
a business plan vary, depending on the context.
There is no guarantee, however, that the plan
will work if it doesn't cover the main bases.
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Use of a Business Plan

• Define and fix objectives, and programs to
  achieve those objectives
• Create regular business review and course
  correction.
• Support a loan application
• Define agreements between partners
• Set a value on a business for sale or legal
  purposes
• Evaluate a new product line, promotion, or
  expansion
• Define a new business (this will be our use)

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No Time to Plan?
Not enough time for a plan. I can't plan. I'm
too busy getting things done. A business plan
now can save time and stress later. Too many
businesses make business plans only when they
have to. The busier you are, the more you need
to plan.
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Business Plans Donts

• Don't use a business plan to show how much you
  know about your business
• Nobody reads a long-winded business plan not
  bankers, bosses, nor venture capitalists (50
  pages max)

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Simplified Business Plan Outline

• Executive Summary
• Company Summary
• Product Description
• Market Analysis Summary
• Strategy and Implementation Summary
• Management Summary
• Financial Plan

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Initial Business Plan Assignment

• Mission/Objectives whats the true nature of
  your business (dont be too narrow), how will you
  build customer satisfaction, what is your
  workplace philosophy, what value to the customer
  do you offer
• Keys to success limit to three and focus on
  those
• Target Market good educated guess
• Competitive Advantage what distinguishes you
  and your product
• Basic Strategies how will you develop the
  company and products

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Use of Graphics

• Tables and charts present information in visual
  formats with greater impact that words alone
• Plan should include graphs, bar charts, and pie
  charts to illustrate
• cash flow (single most important numerical
  analysis in a plan)
• sales forecast with break-even info
• profit and loss statements
• projected balance sheet
• projected business ratios
• market analysis

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Examples
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More Examples
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Still More Examples
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Break-Even Analysis

• Need to know
• Average per-unit sales price
• Average per-unit cost
• Monthly fixed costs
• Projection of unit sales/month