Planning for Success. I. Your Business Starts with You~ Characteristics of a Successful Entrepreneur. Why do you need a Business Plan?

Transcription

1 Planning for Success, CCC-SLP INDIANA UNIVERSITY OF PA I. Your Business Starts with You~ Characteristics of a Successful Entrepreneur II. Why do you need a Business Plan? III. Defining your Mission IV. The Pieces of Your Plan a. Business Concept b. Marketplace Section c. Financial Section V. Starting Your Personalized Plan VI. Sample Plans VII. Resources

2 IMPORTANT FIRST STEP!!! 1. Why do I want to start a business? 2. What has been holding me back from starting my own business?

3 WHO NEEDS A BUSINESS PLAN? Starting a business Modifying a business Looking for financing Serious about success First and foremost, it will define and focus your objective using appropriate information and analysis. You can use it as a selling tool in dealing with important relationships including your lenders, investors and banks. Your business plan can uncover omissions and/or weaknesses in your planning process. You can use the plan to solicit opinions and advice from people, including those in your intended field of business. ("My Way" is a great song, but in practice can result in unnecessary hardships.)

4 WHY DO I NEED A BUSINESS PLAN? We will be discussing a number of reasons why you should write a business plan. In the space below, note those that apply to you and your business/potential business HOW TO WRITE A BUSINESS PLAN IN 3 EASY STEPS 1. Tell them what you are going to tell them (Executive Summary) 2. Tell them what you want to tell them (the Details Sections) 3. Tell them what you told them (Summary and Conclusions)

5 Main Parts of a Business Plan Financial Section Business Concept Marketplace Section your business goals the strategies you ll use to meet them potential problems that may confront your business (and ways to solve them) the organizational structure of your business the amount of money you will need to start and keep it running

6 THE PIECES OF THE PLAN I. Cover Sheet Your plans first impression. Make it a good one! II. Table of Contents Helps organize your information for your reader III. Executive Summary Often may be the only part of your plan that others read. Make sure it catches their interest! Generally is written last IV. Business Description Explains your product or service V. Market and Industry Analysis Provides information regarding the market need for your business VI. The Competition Describes your competition and how you will stand out from them VII. Marketing Strategy Explains how you will get customers (keeping them is called Customer Service!) VIII. Operations Plan Describes operational procedures, licensing, etc Generally a short section for service businesses (because you are selling your time and expertise) IX. The Management Team Outlines the qualifications of all partners (or just you) Helps convince investors or your worthiness to run the business X. Financial Overview and Funding Needs How much money you need, how much you expect to make, how long it will take you to break even, etc XI. Summary and Conclusions Ties up loose ends and seals the deal! (Your last chance to impress the reader) XII. Appendixes and Supplementary Materials Charts, graphs, resumes, etc to support plan

7 YOUR MISSION All actions ultimately support the mission statement by achieving short-term (less than one year) and long term (one to three year) goals. Mission Statement Long Term Goals Short Term Actions Action Plan Your mission statement provides the umbrella under which all of your actions and goals fall. It says what your company does and who you do it for. Jot a prototype of your mission statement here

8 EXPENSES One of the components of starting a business is determining how much capital you will need to open your doors. Use this form to help clarify your needs by listing items you need in any of the following areas (skip those that are not applicable). Then provide an estimate for the cost of these items below. Furniture and Fixtures Clinical materials (anything you need to provide services) Inventory (items to sell) Raw Materials (to produce your product) Office supplies Initial Advertising (how will people know about you?) Insurance (liability, professional, workers comp, building & assets) Permits and Licenses Office Space (Where will you do business?) Communication/Computing/Technology (phone lines, websites, computers) Legal fees (for setting up business) TOTAL

9 MY QUALIFICATION FOR STARTING THIS BUSINESS Envision that you are making a case for why someone should back your business. In the space below, write down all of the reasons that you believe qualify you for their support. This can include professional training, personal characteristics, support systems, etc. Try to make your case as strong as possible! FABULOUS ME!

10 FINANCES Use these questions to help clarify your thinking about your finances and competition Where will your start-up funds come from? Do you know where to get a loan for type of business? Have you calculated monthly fixed costs? (Rent, Utilities, Insurance, Employees, Consumables, Raw Materials) Do you know the cost of providing your services/product? Have you calculated how long it will take you to see a profit? Have you developed a pricing strategy for your product or service? Are you aware of the tax structure for your type of business? Will you require a salary to run your business? Who are your competitors? THE COMPETITION How does/will your business measure against the competition? What sets your business apart from other similar businesses? Will your product or service meet a need for an underserved market? How will you promote your business image/message? Are there sufficient customers for your business?

11 LOCATION ISSUES Does your product or service require a specific location? Do you have adequate parking available? Is your business easily recognizable? Do you know about zoning restrictions, permits etc? How will you address safety and health issues and do you know how to stay in compliance with both federal and state OSHA laws? PERSONAL CONSIDERATIONS Is your family prepared to withstand the time constraints placed on you as a new business owner? If you are considering a home-based business, how will your home office spaced accommodate both your customers, vendors, and family members? Are you ready to work long hours and weekends? If you will have partners or co-owners, have you clearly identified what each member will bring the overall operation? (Think in terms of time, money, equipment, commit ment, experience) Are you a self-starter? Are you in good physical and emotional health? Can you withstand a period of cash outflow without inflow? How long? Can you maintain a disciplined approach to building your business?

12 RESOURCES Print Resources (All Available on Amazon) Entrepreneur Media (2015). Start Your Own Business: The Only Start-Up Book You Will Ever Need. Starting a Business All-In-One for Dummies. (2015). Paulson, Edward. (2007) The Complete Idiot s Guide to Starting Your Own Business. New York: Penguin Books Shelton, Paul. (2014) The Secrets to Writing a Successful Business Plan: A Pro Shares a Step-By-Step Guide to Creating a Plan That Gets Results Strauss, Steven. (2005). The Small Business Bible. Hobokan, NJ: Wiley & Sons, Inc. Moore, D. and Buttner, H. (1997). Women Entrepeneurs: Moving Beyond the Glass Ceiling. Thousand Oaks, CA: Sage Publications. Electronic Resources The American Institute for Small Business. The Small Business Administration Service Corps of Retired Executives. The Online Women s Business Center (Sponsored by the Small Business Administration) eweb: Education for Entrepreneurship eweb.slu.edu Growthink business plan development system. CCH Business Owner s Toolkit Smartbiz.com General Business Information

13 Business Plan Software Business Plan Pro. LivePlan Business Plan software Winning Business Plans in Color (an add-on to Microsoft Office) Sample Business Plans Online Other Resources Small Business Development Centers collaborative projects developed by the Small Business Administration and local colleges and universities that provide free counseling to individuals starting a business. Find a local office by going to