#5 THE BU THE B SINESS PLAN

Transcription

1 #5 THE BUSINESS PLAN Gameplan for Action Baby Steps Start up versus Expansion Purpose of a Plan The Business Plan Model 1

2 What s In a The Business Plan? What s In a The Business Plan? 2

3 Why a The Business Plan? KNOW YOUR AUDIENCE A Business Plan is very, very audience and use specific. You can actually have several versions, depending on who will read it, and why. 3

4 FOR FUNDING Prove, justify your idea Show the market is there Orders? Letters of interest? Personal resume, balance sheet Use of funds Ability to reimburse Minimal risk Business / related experience FOR PARTNERS Investment sought, returns expected Division i i of responsibility Limited risk factors How you propose to access markets Why you are seeking partners What you each bring to the table Long term growth potential Window of opportunity : timing, now! 4

5 FOR YOURSELF Realistic, achievable goals Realistic, conservative budgets Double the costs, half the revenues Realistic market penetration Realistic timelines, milestones Affordable marketing strategies Step by step gameplan 5

6 HOW TO. Get straight to the point Don t brag too much Use graphics, charts Visually pleasing Quote sources of stats, numbers Avoid motherhood -This will be a major force in the industry, and set new standards for quality & price. 6

7 Executive Summary This section should: Be written last. Provide an enthusiastic snapshot of your company, explaining who you are, what you do and why. Be less than 2 pages in length. Business Description and Vision Mission statement (business purpose). Company vision (statement about company growth). Business goals and objectives. Brief history of the business. List of key company principals. i 7

8 Definition of the Market Describe your business industry and outlook. Review the market research done, and what the conclusions are. Define the critical needs of your perceived or existing market. Identify your target market. Provide a general profile of your targeted clients. Describe what share of the market you currently have and/or anticipate. 8

9 Description of Products and Services Specifically describe all of your products and services. Explain how your products and services are competitive. If applicable, reference a picture or brochure of your products, which would be included in the plan s appendix. Organization and Management Provide a description of how your company is organized as well as an organization chart, if available. Describe the legal l structure t of your business (proprietorship, partnership, corporation, etc.). Identify necessary or special licenses and/or permits your business operates with. Provide a brief bio description of key managers within the company. 9

10 Marketing and Sales Strategy Identify and describe your market who your customers are and what the demand is for your products & services. Describe your channels of distribution. How you plan to reach your clients / customers. Why your products / services will be able to compete well, and meet the need of the market. Explain your sales strategy, specific to pricing, promotion, products and place (4Ps). 10

11 o Financial Management For a New Business o Estimate of start-up costs. o Projected balance sheet (1 year forward). Projected income statement (1 year forward). o Projected cash flow statement (12 months forward). o o Financial Management For an Existing Business o Balance sheets (last 3 years). Income statements (last 3 years). Cash flow statement (12 months). If Applying for a Loan (in addition to the above) Current personal financial statement on each principal. o Federal tax return for prior year. o 11

12 Operational Plan Facilities and location. Business license, registration. Staffing requirements. How you propose to operate your business. 12

13 Conclusions This section should include: Timelines to get started Window of opportunity? Identified risks, and how they will be dealt with. Restate your ability to run this business, and your contributions (skills, funds) to get this business going. Appendices This section should include: Resume on yourself. Evidence of cash / equity to put into the business. Letters of support. Estimates for any outside contractors you may be using, builders, etc. If you have done up any brochures, add these in. 13

14 FRESH EYES REVIEW Qualified third party, not family or friends Do they understand the business? Does it answer most of their questions? Do they think you have been realistic? Do they think you are qualified? Do they believe your #s, $ needs, uses? Have you explained yourself well enough? Are there any black holes /gaps? 14

15 MORE FRESH EYES Have you identified what you are selling? do they see who your customers are? Do they feel your research is adequate? Do they feel you have presented the risks? Would they recommend this to investors? If they were in a position to do so, would they yp participate, p invest, partner, etc? DO THIS AGAIN, WITH MORE FRESH EYES!! GETTING PERSONAL Personality fit with this business? Does that come across in your Plan? Enthusiasm? Confidence? Passion? Live with what you have presented? Patience demonstrated in gameplan? Ability to deliver, without causing undue hardships to family, spouse? 15

16 INSPIRED CRAZINESS We entrepreneurs are a bit (or more) crazy. That should reflect in the Plan. That spirit is infectious. This is our moment to shine! FOR NEXT WEEK.. 1. Based on your own business, do up a brief summary of what you might include in your Business Plan. Bullets are fine. 2. This is a quick overview only to assure you grasped the Business Plan, and why you need it. 3. Share the results. Feel free to me. 16