1 Business Plan Development for the Young Professional Valdosta State University Small Business Development Center Ruby Riesinger Area Director/Business Consultant
2 Beginning Notes The business plan is a road map on an entrepreneurial journey. The plan should be written using the 3 rd person figure of speech. The plan must be realistic, credible, and compelling. The plan communicates the company s readiness and professionalism.
3 5 Ways to Ruin a Plan 1. Failure to consider outside influences: competition, industry trends, economic environment. 2. Lack of market research: over-estimating market size; failure to define target market. 3. Unsubstantiated and/or unrealistic financial assumptions. 4. Unprofessional appearance of plan: illogical format; spelling & grammar errors. 5. Lack of understanding plan.
4 Business Plan has 3 Sections 1. Narrative pages, concise, using headlines, graphs, and bullets. 2. Financial Projections 3. Appendix Based on facts & research; justify all the numbers. Management resumes, market research and data sources, floor plan, sample marketing materials, contracts, historical financials, personal financial statements, tax returns.
5 Key Elements of Narrative Section 1. Executive Summary 2. Company 3. Management 4. Operations 5. Target Market 6. Marketing Plan 7. Competition
6 Executive Summary Concise explanation of business: product, services, company. Management Team: short bios of key managers. Target Market: market size; market need; demographic profile. Marketing Plan: how will company penetrate market and retain customers? Competition: indirect and direct competitors. Competitive Advantage: what your company does better/different from competition. Financial Highlights.
7 Can you explain your business idea in the time it takes to get from the lobby to the fifth floor? Elevator Pitch
8 The Company Date of Formation. Legal Structure. Office Location. History and Accomplishments, if applicable. Competitive Advantage: describe industry and how your company is uniquely qualified to succeed. Provide examples: superior management; proprietary technology; outstanding systems.
9 Management Description of key team members. Owners/Manager s Experience present with entrepreneurial perspective. Who will be responsible for each functional area of the business? Outside resources Attorney, Banker, CPA (ABC s). Advisory Board use to fill in management gaps.
10 Management Personnel Start-up personnel needs. How will you find these people? Skills and training. Compensation. Consider including a staffing worksheet: 1)job roles; 2) # of employees in each role; 3)pay rate/range.
11 Operations How will products/services be produced or obtained? How will service be provided to the customer after the sale? List key suppliers. Discuss inventory and bookkeeping system.
12 Target Market Define target market: Who they are. For example: single, college educated professional woman, aged 35-50, with annual income levels from $50,000 and above. Where they are. Provide details about the geographic area you are going to serve. For example: Neighborhood? City? Region? Country? Size of market. # of those potential customers is large enough to sustain your business. What they want. Those potential customers value what you offer and are ready to buy.
13 Target Market Market Research: validate that a market exists for your product and/or service. (Utilize primary and secondary research methods.) Demographic Information: include demographic data (maps, reports, charts) and discuss how this information supports your business strategy. Market Trends: highlight trends in your industry that reflect positively on your business strategy.
14 Marketing The Four P s Product and Services Price Promotion Place
15 Marketing Product and Services Describe each product line Product features Product benefits
16 Marketing Price What is your pricing strategy? Is your pricing consistent with your product? How does your pricing compare to the competition? Why will customers pay your price?
17 Marketing Promotion Advertising: print, internet, TV, radio Public Relations Direct Mail Sales Promotions
18 Marketing Place/Distribution How will you deliver your product to the customer? What is the primary distribution method? What other distribution methods are offered?
19 Marketing Place/Distribution Does the business address enhance desired perception? Is the facility owned or leased? Any build-outs or improvements needed? Describe property, surrounding area, and why this is a good location for the business.
20 Competition Direct competitors. Indirect competitors. Competitive Advantage (particularly with respect to direct competitors ). Avoid statements such as There is no competition.
21 Financial Projection Objectives of the financial plan: 1. Establish profit potential of business given reasonable assumptions. 2. Determine capital needs of how it will be used. 3. Demonstrate that the business can generate cash to operate and repay loans.
22 Steps in Financial Projections 1. Estimate sales by month. 2. Calculate gross profit percentage by product line. 3. Determine amount of inventory. 4. Determine average collection period. 5. Determine how fast vendors must be paid.
23 Steps in Financial Projections 6. Estimate fixed asset requirements by month. 7. List repayment schedule for existing loans. 8. Estimate any start-up, one-time, or unusual expenses. 9. Estimate fixed expenses by month.
24 Financial Projection Statements Income Statement Balance Sheet Cash Flow
25 Income Statement Includes revenues & cost of sales. Includes selling, general & administrative expenses. Some cash outflows are not included, i.e. principal payments on loans. Not all expenses are cash outflows, i.e. depreciation.
26 Estimating Sales Talk with vendors. Check out industry averages or competitors. Estimate by product category. Estimate annual sales broken down into monthly expectations don t forget about seasonal fluctuations. Estimate average daily sales or traffic.
27 How to Estimate Expenses Quotes Insurance Property and Casualty General Liability Business Interruption Health
32 Cash Flow Projections The most important of all the projected financial statements. Business owners must have a fundamental understanding of what cash flow is an how cash flow works. CAUTION: Failure to adequately understand cash flow can be fatal to a business.
33 Cash Flow Projections Includes all cash coming into the business. Includes all cash leaving the business. Obviously, a business cannot operate in the absence of cash. Must be included as part of monthly and annual projections.
34 Financial Plan Income Statement answers: How much profit will the business make? When will the profits be made? Balance Sheet answers: How much of a business do owners own? How much do creditors own? Can funds be borrowed? Cash Flow Statement answers: When does a business begin to cash flow? How much cash will the business generate?
35 Financial Plan Caution: It is important that the owner have ownership of the financial projections. Projections should be prepared and presented on a monthly basis for the first three years. Understand the impact of any business cycle!
36 Sources of Money Total Project Cost: How much is needed? Equity Injection: How much will the owner invest?
37 Sources and Uses of Funds Sources Investment $8,500 Bank Loan 10,000 Trade Credit 7,500 TOTAL $26,000 Uses Improvements $10,000 Furniture & Equipment 6,000 Working Capital 10,000 TOTAL $26,000
38 Appendix Management resumes, job descriptions, and professional certifications. Personal tax returns. Personal financial statements. Resume. Personal credit report. Important legal documents: copies of leases, business licenses, contracts, and others. Letters of intent.
39 Appendix Company specific profiles: financial, trends, competitive intelligence, management team. Industry overview: financials, market size, companies, trends, trade associations. Market research: competitive landscape, market share, statistics, consumer data. Demographics: populations, spending, lifestyles income, business data relevant to target market. Literature: articles on relevant business topics.
40 Compelling Solutions by the SBDC Financial Projections Valuation Components Business Assessments Business Plan Overviews Operational Policies International Trade Acquisition Federal and State Regulation Compliance Strategic Planning Loan Packaging Procurement Sources of Capital Succession Planning Investor Presentations Certifications Cash Flow Analyses Marketing Plans and Research Consulting sessions are free of charge and scheduled by appointments.
42 Thank You!! Ruby C. Riesinger, MBA Area Director/Business Consultant Valdosta State University Small Business Development Center
Business Plan Guidelines The following Business Plan Format checklist is meant as a guideline only listing the most important sections of the business plan in the order in which they will likely appear
Business Plan Outline Submitted To: The Community Development Transportation Lending Services, Inc., CDTLS Insert your Business Logo Here (if you have one) Insert Your Business Name Here Phone Number Here
Business Plan Guide for a Small Business A Business Plan is a written document that describes the path of your business venture. It describes what you want to do and how you plan to do it, usually covering
A PRACTICAL GUIDE TO WRITING A BUSINESS PLAN Louisiana Small Business Development Center At Southeastern Louisiana University 1514 Martens Drive Hammond, LA 70401 Phone: (985) 549-3831 Fax: (985) 549-2127
Business Plan Outline UW Oshkosh Small Business Development Center Tel. 1-800-232-8939 (In Oshkosh, (920) 424-1453) Web Site: www.wisconsinsbdc.org/oshkosh There are a variety of styles and formats used
PARRY SOUND AREA COMMUNITY BUSINESS & DEVELOPMENT CENTRE INC. A Community Futures Development Corporation 1A Church Street, Parry Sound, ON P2A 1Y2 Telephone: (705)746-4455 Toll Free: 1-888-746-4455 Fax:
PLANNING FOR SUCCESS P a g e 0 PLANNING FOR SUCCESS P a g e 1 Planning for Success: Your Guide to Preparing a Business and Marketing Plan This guide is designed to help you put together a comprehensive,
TAKING THE MYSTERY OUT OF FINANCE Presented By: Eva Brown, Director of Access to Capital 312 853 3477 x 560 OBJECTIVES Determine how much money you need to start/expand your business. Determine your ability
How To Prepare A Business Plan A Step By Step Guide North Central Development P.O. Box 1208 Thompson, Manitoba R8N 1P1 Phone: 204 677 1490 Toll Free: 1 888 847 7878 Fax: 204 778 5672 E mail: firstname.lastname@example.org
Business Plan Template Why have a Business Plan? The real value of your business plan is to empower you in a systematic way to comprehend the dynamics of your business. It enables you to review your business
Financial Plan The Financial Plan is perhaps one of the most important components of your Business Plan (see Business Plan Handout). Not only is it essential if you are seeking external financing it is
Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology email@example.com 315-792-7557 1 Objectives of Presentation To walk you through the steps needed to create
SKILLS ONTARIO TECHNOLOGICAL SKILLS ENTREPRENEURSHIP COMPETITION Guide to Completing Your Business Plan Congratulations on deciding to enter the Technological Skills Entrepreneurship Contest This provides
NYS Small Business Development Center Farmingdale State College Business Plan Guide Small Business Development Center The SBDC is a program supported by the U.S. Small business administration and extended
Financing Entrepreneurial Ventures Part 1 Financial Plan & Statements Barbara Peitsch Program Director, Univ. of Michigan Peter Scott Professor of Entrepreneurship/Consultant August 2015 Economic Empowerment
Business Plan Workbook Developed by the staff of the Niagara County Community College Small Business Development Center 3111 Saunders Settlement Rd Sanborn, NY 14132 7162102515 www.niagarasbdc.org Call
Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,
Basic Accounting & Budgeting February 4, 2009 The Nature of Accounting Systems Accounting is the process of recording, classifying, summarizing, reporting and interpreting information about the economic
Staunton Creative Community Fund 10 Byers Street, Staunton, VA 24401 540-213-0333 www.stauntonfund.com firstname.lastname@example.org Business Plan Template So you have an amazing, innovative idea for a new
Introduction to Accounting Text File Slide 1 Introduction to Accounting Welcome to SBA s online training course, Introduction to Accounting. This program is a product of the agency s Small Business Training
It s Time to Write Your Business Plan By Jim Mulligan If you re looking to start a business, the thought of developing a business plan might seem daunting. Some even question the value of spending time
The Business Plan What is a Business Plan? The Business Plan is a clearly written analysis of your company. It explains the industry in which you compete, your company s goals & objectives, and your plan
(Logo if available) BUSINESS PLAN (NAME OF COMPANY) (ADDRESS) (ADDRESS) (PHONE NUMBER) Established : (Date) Contact person: (Name); (Position) (Date of Application) (Copy of copies distributed) This business
0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting
New York StartUP! Business Plan Competition Developing Financial Statements Presented by Paisley Demby, CEO PBN Consulting, LLC www.pbnconsulting.com 1 Invitation to Tweet #2015NYStartUp PaisleyDemby Contents
ADDITIONAL REFERENCES AND FINANCIAL MODELS: For more information about financial statements and terms refer to e book, How to Read Financial Statements. Advanced financial models providing 5 year projections
U.S. SMALL BUSINESS ADMINISTRATION 8(a) BUSINESS PLAN OMB Approval No.: 3245-0331 Expiration Date: 08/31/2007 NAME OF COMPANY: ADDRESS OF COMPANY: CONTACT PERSON: TELEPHONE NO.: SBA STATEMENT ON REPRESENTATIVES
ISBLSP Eligibility Requirements: The Borrower represents that: (a) The Borrower is an entity with 500 or less employees; the loan proceeds must be used for a business purpose. A business purpose includes,
Business Plan Outline This document is designed to: 1. Describe what a business plan is 2. Include thought-provoking questions that will help you design a plan that for your business to layout a blueprint
BUSINESS NEEDS ASSESSMENT Client Name: Phone Number: Client Number: Date Conducted: LEGAL FORM OF OWNERSHIP Under what form of ownership is the firm now operating? If more than one owner exists, does a
The best source of information and training on Aboriginal finance and management The Aboriginal Finance and Management Capacity Development Series Developing Business Plans and Funding Proposals A Practical
BUSINESS PLAN TEMPLATE MANUFACTURING COVER SHEET (This highlights how you can be contacted. numbers and email addresses listed are operational.) Ensure that telephone 1. Identify the Business 2. Identify
Overview Statement of Cash Flows Chapter 23 BECAUSE of the SCF, users of the financial statements get the best of both worlds! SCF bridges the gap created by paper income resulting from applying an accrual
BUILDING A BUSINESS PLAN Northern Savings Commercial Services Whether your business is just starting out or you re ready for a change, Northern Savings Commercial Services is an ideal partner and can provide
iplanner.net Small Business Plans Online BUSINESS PLAN TEMPLATE For a start-up company 18/01/2012 12:33:19(GMT) Executive Summary... 3 Business Overview... 3 Products and Services... 3 Sales Forecast...
Insufficient Cash On Hand A Frequent Reason For Needing A Business Loan 2 Cash flow is cash into or out of a business When cash inflows exceed cash outflows, it is generally indicative of good financial
Please NOTE This example report is for a manufacturing company; however, we can address a similar report for any industry sector. Performance Review For the period ended 12/31/2013 Provided By Holbrook
Business Plan Outline www./business-plan/ Why do I need a business plan? The business plan is a key component for a successful business. A plan is vital because it: Provides an organized system for researching
Page 12 County of Bucks Community Services Division Lynn T. Bush, Executive Director and County Chief Clerk Community and Business Development Department Vitor A. Vicente, Director Neshaminy Manor Center
CASH FLOW STATEMENT (AND FINANCIAL STATEMENT) - At the most fundamental level, firms do two different things: (i) They generate cash (ii) They spend it. Cash is generated by selling a product, an asset
ENTREPRENEURIAL FINANCE: Strategy Valuation and Deal Structure Chapter 7. Methods of Financial Forecasting: Integrated Financial Modeling Questions and Problems 1. The cash cycle is the time between when
Need to know finance You can t hide from it Every decision has financial implications Estimating sales and cost of sales (aka direct costs) Gross Profit and Gross Profit Margin (GPM) Sales cost of sales
03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize
SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey
APPENDIX SAMPLE BUSINESS PLAN Introduction Business Description A brief description of your business; product type, industry and target market and competitive position as compared to your rivals Current
C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,
Helping Your Prospective Businesses Get the Funding They Need Connie Edwards Reminders Connie Edwards Business Consultant Small Business Development Center Savannah, Georgia email@example.com 912-651-3200
CHAPTER OUTLINE Spotlight: J&S Construction Company (http://www.jsconstruction.com) 1 The Lemonade Kids Financial statement (accounting statements) reports of a firm s financial performance and resources,
Accounting Practice Questions 1) The fundamental accounting equation states that: a) assets = liabilities + owner s equity b) assets = liabilities + drawings c) assets = liabilities + net income d) assets
4321 Queen Street, Niagara Falls, ON L2E 2K9 905.356.7521 x 5004 firstname.lastname@example.org Business Plan Guide Overview A business plan is used for more than just securing financing it is a key document that
APPENDIX B OUTLINE OF A BUSINESS PLAN A business plan is a description of your proposed or existing business and should include information on the business' products or services, markets, marketing strategies,
FINANCIAL INTRODUCTION In earlier sections you calculated your cost of goods sold, overhead expenses and capital cost in order to help you determine the sales price of your product. In your business plan,
Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold
Business Planning Guide Inventing new ways to succeed by planning your way to success Why should I create a Business Plan? Develops a rational, critical examination of the business project The finished
Business Plan Guide Name: Company Name: Department: Address: Phone: E-Mail: Description of business 1. What exactly is your product or service? Be specific. 2. Why do you want to start or expand your own
Business Plan Workbook TABLE OF CONTENTS 1.0 OVERVIEW... 3 2.0 DESCRIPTION OF THE BUSINESS... 5 3.0 OWNERSHIP & MANAGEMENT... 7 4.0 MARKET & INDUSTRY OVERVIEW... 8 5.0 MARKETING PLAN & STRATEGY... 11 6.0
Business Plan Planning Service Financial Analyses and Projections Financials Included With Every Ceo Resource Plan These are the financial analyses and projections that are included with all plans developed
This week its Accounting and Beyond Monday Morning Session Introduction/Accounting Cycle Afternoon Session Tuesday The Balance Sheet Wednesday The Income Statement The Cash Flow Statement Thursday Tools
Financial Terms & Calculations So much about business and its management requires knowledge and information as to financial measurements. Unfortunately these key terms and ratios are often misunderstood
How to Create a Business Plan A formal business plan is important. It is needed when obtaining financing; serves as a guide for the policies, strategies, and tactics needed for running your business; can
Business Plan Your Business Name Owners Address City, ST ZIP Code Telephone Fax E-Mail Date: Page 2 II. Executive Summary Write this section last. We suggest that you make it one page long; two pages max.
Business Plan Outline This document is a supplement to practicepro's managing the finances of your practice booklet. It reviews the steps you can take to better manage the finances of your practice, and
business builder 4 how to prepare a cash flow statement zions business resource center zions business resource center 2 how to prepare a cash flow statement A cash flow statement is important to your business
+ Financial Planning Presented by Emma's Garden Financial Planning A comprehensive financial plan helps you to forecast and set your financial goals and milestones. Your financial forecasts are an essential
RISK ASSESSMENT FOR SMALL BUSINESS Terry S. Campbell, Community Development Officer Department of Development & Technology Date: March 25, 2004 1 Counseling Tool Outline - Cover Page - Outline - Introduction
South Eastern Economic Development SEED Corporation 80 Dean Street (Route 44), Taunton, MA 02780 SEED is a non profit finance corporation certified and accredited by the U.S. Small Business Administration
Atthapol Charoenkietkrai ACG2021 Section 2 Amazon has been in a good position for the last few years and still on a rise. The assets have increased, and the debt has decreased. The company has exponentially
Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare
The Orangeville & Area Small Business Enterprise Centre (SBEC) 87 Broadway, Orangeville ON L9W 1K1 519-941-0440 Ext. 2286 or 2291 email@example.com www.orangevillebusiness.ca Supported by its Partners:
ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN WHAT MAKES A GOOD BUSINESS PLAN? A business plan is a written document, which outlines: the business and owner s background the proposed resources to be used
Business Plan Template Telling the story of your business Business focus: Retention driven 1 Business Plan Template Introduction The big day is here! You are about to begin the writing of your business
A BUSINESS PLAN IS NOT REQUIRED FOR PM s YOUTH BUSINESS LOAN SCHEME. HOWEVER, SMEDA RECOMMENDS ALL POTENTIAL ENTREPRENEURS TO PREPARE IT TO UNDERSTAND THE PROFIT POTENTIAL OF ANY PROJECT. Business Plan
Essential Guide for Business Plan Creation Basic 12 step guide for executing a successful Business Plan EBP Business Plan Designer Written by Matthew Parfitt EBP International Sales Executive The Essential
Topic 9 Preparing a Successful Financial Plan LEARNING OUTCOMES By the end of this topic, you should be able to: 1. Describe the overview of accounting methods; 2. Prepare the three major financial statements
Fill in the Blanks Feasibility Study Worksheet The Arizona SBDC Network is partially funded through a cooperative agreement with the US Small Business Administration. The SBA s funding is not an endorsement
Business Planning: Some General Considerations Barriers to Business Success The US Bank reported in August 2003 their top reasons why businesses fail or do not reach their top potential. The percentage
BUYING OR SELLING A BUSINESS: A CHECKLIST FOR SUCCESSFULLY NEGOTIATING PRICE Phil Thompson Business Lawyer, Corporate Counsel www.thompsonlaw.ca A COMMON GOAL AND COMMON UNDERSTANDINGS Agreed: Our common