The Business Plan

1
The Business Plan

• How does a well written business plan affect the
  future of a business?

2
The Business Plan

• What is it?
• A business plan is a written document that
  describes all the steps necessary in opening and
  operating a successful business.

3
The Business Plan

• Purpose of a business plan
• Idea behind your business
• Product or Service
• How produced and sold
• Specific objectives
• How you expect to achieve
• Backgrounds and Experiences of those running the
  business

4
The Business Plan

• Why is it important?
• Think about all aspects
• Secure Financing
• Start up costs/risks
• Communicate Ideas to others
• Overall management

5
7 Elements of a Business Plan

• History and background
• Has another company been successful in this
  market?
• What is your background, history in business
• Goals and objectives
• Outline your short-term, medium-term, and
  long-term goals.
• Future

6
7 Elements of a Business Plan

• Products or Services
• What products will you offer?
• How do they differ from what is already on the
  market?
• Why would customers buy your product or service?

7
7 Elements of a Business Plan

• Products or Services continued
• What industry will you operate in?
• Is there a lot of competition?
• Is there potential for growth?
• What are current trends?
• How about technology?
• You will have to conduct research to answer
  these questions. Include your sources in your
  business plan.

8
7 Elements of a Business Plan

• Products or Services continued
• Location
• Form of Ownership
• Provide details relevant to your form of
  business.
• Do you have partners? Who are they?
• Will you have shareholders? How many?

9
7 Elements of a Business Plan

• Management and Staffing
• Who will run your company?
• Why are they/you qualified?
• Marketing
• Who are your prospective customers?
• How large is the market for your product?
• How will you enter the market?
• How will you deal with your competition?

10
7 Elements of a Business Plan

• Current and Projected Financial Statements
• Risks and Solutions
• Examples include competitors cutting prices,
  costs exceeding projections, and no demand for
  your product/service.
• Financial statements
• New Businesses
• pro forma financial statement estimate of
  revenues and expenses

11
7 Elements of a Business Plan

• Current and Projected Financials continued...
• Existing Businesses
• Current financial and projected statements
• Funding request and ROI (return on investment)
• How much to borrow
• How you intend on using it
• Include money you are already investing in company

12
Additional Elements

• All business plans must include the seven
  elements however, additional elements may be
  required
• Licensing requirements
• Special legal considerations

13
The Business Plan

• Summarizer
• What are the 7 elements of a business plan?
• What role does research play in making a business
  plan?

14
Research

• Print resources
• Books on marketing, financing, hiring, and
  managing a staff
• Magazines devoted to small business and specific
  industry
• Government documents
• Online resources

15
Research

• People resources
• Additional resources
• Local chamber of commerce
• Small business development center
• Trade associations

16
Helpful Hints

• Short and to the Point for Lenders
• Use charts and tables to illustrate your point
• People like visuals ?