The Business Plan

1
The Business Plan

• Apparel Development 2
• Objective 4.02

2
Business Plan Purpose

• Describes the new business
• Obtain financing
• Feasibility
• A living guide to the business (road map)

3
Business Plan is a Manual

• To help during
• Design
• Start-up
• operating

4
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
5
Executive Summary

• Time to persuade potential investors
• Keep it simple
• What are you going to do?

6
Product/Service Plan

• What are you going to offer?
• Be descriptive

7
Management Team Plan

• Who will be in charge of what?
• Job Descriptions
• Skills

8
Industry/Market Analysis

• Customers
• Competition
• Industry

9
Operational Plan

• Process
• Delivery distribution
• Logistics - details about how the product gets
  to the customer
• Product development

10
Organizational Plan

• Management Philosophy
• Personnel
• Employment policies

11
Marketing/Promotion Plan

• Product
• Price
• Promotion Advertising
• Place Distribution

12
Financial Plan

• Projected Income / Cash Flow Statements
• Repayment of Borrowed Funds

13
Putting it all Together

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

14
Assessing Feasibility

• Feasibility Analysis
• Market Niche
• Target Customers

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Feasibility Analysis

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

16
Market Niche

• Dont try to be everything to everyone
• Specialize

17
Target Customers

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

18
Choosing Your Product
Considering Options Product Development
Outsourcing Demand
Product Mix Prototype
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Product Development

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

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Steps in Product Development

1. Opportunity Recognition
2. Concept Investigation
3. Inspections
4. Prototype Building

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Proto-type

• A working model of a product
• NOT sample

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Outsourcing

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

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Outsourcing

• Using someone else to do part of the work you
  arent able to do
• gives entrepreneurs opportunities to supply
  services to other companies

24
Product Standards

• developed to benefit the customer

25
Quality Control

• system to verify and maintain desired product
  standards
• responsibility of entire production team