Developing Your Business Plan

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Developing Your Business Plan"

Transcription

1 Developing Your Business Plan

2 Developing a Business Plan for Trade Adjustment Assistance Kevin Klair Center for Farm Financial Management University of Minnesota Developing a Business Plan A business plan is required to complete all TAA training phases and to receive the maximum payment This workshop will help prepare you to write your business plan 1

3 Why develop a plan Objectives How to develop a plan What Is a Business Plan? A formal statement of business goals, the reasons why they are believed attainable, and the plan for reaching those goals 2

4 Who Needs a Business Plan? Any business will benefit, but a business plan is particularly valuable for: New or expanding businesses Businesses making major changes Do You Need a Business Plan? Are you a new or expanding business? Are you considering major changes to your business? Do you have multiple family members who need to be on the same page? Are you involved in creative, niche, value added, or alternative enterprises 3

5 Purpose of a Business Plan Demonstrates that you have taken the time to objectively think through the details required to make the business succeed Purpose for a Business Plan Effectively communicate your business Externally to lenders, investors, partners Internally to family members & employees 4

6 Purpose of a Business Plan Most importantly, will help you improve the management of your business It is the blueprint for operating your business Serves as your operational guide 5

7 Business planning: Lessons Learned Is very time consuming Is best done by the business owner/management Can be very expensive Your business plan should be a living document Revisited and revised at least annually Major Functions of Management Production management Marketing management Personnel management Financial management 6

8 Sections of a Business Plan Executive summary Business description Operations plan Marketing plan Personnel plan Financial plan How to Develop a Business Plan Most people use business planning software Provides Outlines Suggestions on content Sample plans 7

9 v 8

10 9

11 10

12 11

13 12

14 13

15 14

16 15

17 16

18 17

19 18

20 AgTransitions If your plan is to transition out of the business There is an alternative business planning tool AgTransitions Develops a plan to transition a business to next generation 19

21 20

22 AgTransitions If you want to transition your business to someone else or retire Tell your consultant AgTransitions may be a better tool for you than AgPlan 21

23 Business Plan Sections In the next few segments of this workshop will we briefly discuss the sections in AgPlan There is more detailed information about each section in AgPlan s tips and resources Business Plan Sections Almost no one uses all of the sections in the AgPlan outline Use the sections that are relevant to your business and leave the others blank A good business plan does not have to be long 22

24 Business Description Business Description The business description is the easiest to write It is a great place to start 23

25 Business Description AgPlan business description sections: Business overview Location or Location/Area fished Facilities or Gear/Facilities Business history Ownership structure Operations 24

26 Operations The Operations section describes the production management system It describes what you produce and how you produce it Operations Production management is one of the most important aspects of running a farm or fishing business Production level or yield is usually the most important factor determining the cost of production and profitability 25

27 Operations There is rarely one area where significant cost reductions can be attained The key to more profitable businesses is managing many costs two to five percent more efficiently Operations AgPlan operations sections: Products Services Production system Customer service* Inventory management* Licenses, permits and regulations 26

28 Operations AgPlan operations sections (cont.): Patents and trademarks* Risk management Environmental issues Quality control Implementation timeline Operations Many of the topics in the operations section are issues that, if mishandled can destroy a business very quickly They are issues that lenders, partners and family members want to know are being addressed 27

29 Products and Services Operations Describe the products you produce and the production levels you achieve If you have multiple products or services, describe their importance to your business Are you planning new products or services Products and Services Operations You might also discuss in this section how and why you: Specialize in a product or a few products Diversify your line of products 28

30 Production Systems Operations How do you produce your products or services? Do technologies you use give you any advantages? Describe proposed production system changes and how they will improve production levels or efficiencies Customer Service Operations If you deal directly with customers, good customer service is critical. Describe what you do to provide good customer service How do you monitor your reputation? 29

31 Inventory Management Operations Do you produce a product that needs to be stored? Do you need specialized storage facilities? Do you need to maintain an inventory of supplies? Do you have reliable suppliers? Operations Licenses, Permits and Regulations If you are making changes, you likely will need to get permits or licenses Identify the permits and licenses needed, when you need them and the process to get them Identify how you respond to major regulations affecting your business 30

32 Risk Management Operations Risk management is increasingly important Discuss the risks you face: Production, price, financial, legal, and human And the methods you use to manage risk: Insurance, pricing, financing, safety procedures, and contingency plans Environmental Issues Operations Environmental issues and regulations are important for fishing and agricultural industries How are you addressing environmental concerns and regulations? 31

33 Quality Control Operations How do you produce high quality products or service? Is quality important for your marketing plan? If you handle food products, how do you address food safety issues? Operations Implementation Timeline If you are planning major changes, the implementation timeline is critical Outline the major steps that must be accomplished and deadlines to complete Discuss the impact on your business while the changes are being implemented 32

34 Marketing Marketing Your marketing plan will depend on how you market your products Sell commodities to processor or wholesaler Contract production Direct marketing to consumers or retail 33

35 Marketing AgPlan marketing sections: Market Trends Marketing Describe what is happening to the market for your products Threats or challenges Consumer demand Competition How will this impact you? 34

36 Marketing Strategy Marketing This topic is only available for the ag traditional commodity & fishing outlines Where and how do you sell your products? Production contracts Forward pricing using contracts, futures, options Customers Marketing Who are your customers? Will they change? Are there new customers you want to gain? Demonstrate that you understand your current and future customers 35

37 Marketing Contracts Marketing If you have production or marketing contracts describe them What portion of your production is under contract? What are the terms of your contracts? How do your contracts benefit your business? Strategic Partners Marketing Partnerships can add to your success Almost all businesses have some form of partnerships Markets, input suppliers, producer organizations, other producers Some have more formal partnerships Who are your important partnerships and how do you benefit from them? 36

38 Pricing Marketing What do you charge for your products or services? How do you determine your prices? How do your prices compare to competitors? Can you capture premium prices? Promotion Marketing How do potential customers become aware of your product or services? Promotion can take many forms and may be limited only by your creativity 37

39 Distribution Marketing How do you distribute your products? Direct shipping, delivery, on-site sales Orders via phone, online, other Timing Distribution channels Wholesale, processors, retail, consumers Direct marketing Market Segments Marketing Market segments are similar groups of customers Demographic age, gender, occupation Geographic local, national, international, rural, urban Individuals, other businesses, distributors, processors What are the primary market segments for your products and services How big are the segments? 38

40 Target Market Marketing Which market segments do you target? Why? Competitive Advantage Marketing Who are your competitors? How well do you compete with them? Do you have competitive advantages? Quality, price, location, facilities, equipment, distribution, alliances, recognition, employees, service 39

41 Management & Organization Management & Organization People make a business successful Who will manage your business, who will provide the labor, and how will they do it? 40

42 Management & Organization Your business plan should document that you have the management and personnel resources necessary to run your business or a plan to obtain them Management & Organization AgPlan management and organization sections: Management team Board of directors Advisory board Personnel plan Professional services 41

43 Management & Organization Management Team Who manages your business? What are their roles? What are the qualifications of the management team? Management & Organization Management Team If changes are planned, is the management in place to implement them? What additional management skills may be needed? Do you have a management transition or contingency plan? 42

44 Management & Organization Board of Directors If you have a board of directors, identify the board members and their affiliations Describe the strengths they bring to your business. Describe how your board functions Management & Organization Advisory Board Some businesses have an advisory board If you have an advisory board, identify the board members and describe the strengths they bring to your business Describe how your board benefits your business 43

45 Management & Organization Personnel Plan For many family farms and fishing businesses, just describe the roles of the family members If you do have employees, describe their roles and responsibilities What additional tasks will be created if you make major business changes? Management & Organization Personnel Plan Your personnel plan should describe your job descriptions, compensation plans, incentive plans, employee handbooks, and training procedures 44

46 Management & Organization Professional Services What professional services do you use? How long have you used them, what is your relationship with them? Are their services essential, how do you manage the third party risk of losing their services? Financial 45

47 Financial For many businesses, the financial section is the most important part of their business plan The financial section is particularly important if you are proposing major changes or starting a new business Financial AgPlan financial sections: Financial position Historical performance Financial projections Asset management Benchmarks Capital request 46

48 Financial Financial viability is generally evaluated from three perspectives: Solvency Profitability Liquidity Financial Solvency evaluates changes in net worth How much do you own if all debts paid Profitability monitors earnings How much income are you generating Liquidity estimates cash flow and debt repayment ability The ability to pay bills when due 47

49 Financial Position Financial A balance sheet measures business solvency Compares the assets invested (what you own) in the business with the sources of capital (liabilities what you owe and your equity) Historical Performance Financial Usually evaluated using income statements to measure profitability Measures how much income the business is making in relation to the resources used to produce that income 48

50 Financial Projections Financial Evaluate liquidity using a cash flow statement A projection of all sources and uses of cash during a specified planning period Evaluates the business s ability to meet loan payments and other financial obligations on time Asset Management Financial Your financial plan should also describe how you acquire and manage capital assets - purchase, lease, or custom hire How efficiently are assets being used? 49

51 Benchmarks Financial Compare your business performance to other similar businesses Can be very valuable as you evaluate changes to your business and if you are requesting financing Capital Required Financial The final part of your financial plan should describe how much money you need to implement your business plan Describe the sources of your financing Present your financing request if you have one 50

52 Financial In addition to financial statements, Include a written description of the strengths of your financial position, projections, and historical performance Describe the assumptions you used to make your financial projections Financial Your Financial Statements Generate financial statements using a software program, it s easier FINPACK is a widely used ag financial planning software that can also be used by fishermen 51

53 Financial Your TAA business planning consultant will have access to FINPACK FINPACK provides financial statements and also financial ratios to help evaluate the meaning of your financial numbers Balance Sheet A balance sheet will be required as part of your plan A blank balance is included with your handouts You might start working on it before meeting with your consultant 52

54 Balance Sheet Assets Current (< 1 year) Intermediate (1 10 yrs) Long term (> 10 years) Personal Total assets Liabilities Current Intermediate Long term Personal Total liabilities Net worth Balance Sheet Inventory of your financial and physical resources Evaluates financial strengths and weaknesses Evaluates credit risk Starting point for financial plan 53

55 Executive Summary Executive Summary The first section of your plan But may be the last section you write Summarizes your entire plan May be the only section some people read Needs to briefly, but very effectively describe your business and your plan 54

56 Executive Summary AgPlan executive summary sections: Business description Mission statement Goals Plan summary Capital request Writing Your Business Plan We have briefly looked at all the sections of the AgPlan outline REMEMBER, almost no one uses all of the sections Use the sections important to your business A good plan only needs to be 20 to 50 pages 55

57 Writing Your Business Plan What is needed to write a business plan? Take time to think about your business and where you want it to go Communicate with family members and partners Research potential markets, prices, equipment, structures, and available options Writing Your Business Plan Most people need 2-3 months to write a good business plan If you are investing the time to write a business plan Develop a living document that you can use as a guide in your business for years 56

58 Writing Your Business Plan Developing a good business plan can be very valuable for your business Use it to improve management and profits To measure progress toward your goals and financially To differentiate your business To make it easier for others to do business with you Writing Your Business Plan TAA provides valuable resources to help you write your business plan An individual business planning consultant Business planning tools Financial planning tools 57

59 Four Phases Remember four TAA training phases 1.Initial orientation 2.Intensive workshops 12 hours 3.Initial business plan 4.Long-term business plan Planning Consultant When you complete Phase 3 - Initial Business Plan You will be assigned a business planning consultant 58

60 Will contact you by: Planning Consultant Phone, or mail to set up first meeting Will meet with you up to three times Will continue to interact with you via AgPlan, , or phone to help you finish Planning Consultant Will NOT write your plan for you! They are coaches To help you understand how to write your plan To suggest ideas to expand your thinking To help you keep progressing on your plan 59

61 Planning Consultant Consultant will ask you to sign an agreement at the first meeting, Consultant will not write your plan Will not give advice nor is liable for any decisions you make Will not try to sell you any additional services Will keep all information confidential Will not guarantee that you will finish or get a payment Planning Consultant Most business planning consultants are: Retired or current business management educators People with experience helping develop business plans 60

62 Planning Consultant If there are problems with your business planning consultant, call your regional TAA center Western Center (509) Southern Center (501) North Central Center (800) Northeast Center (302)

63 The Process Initial Orientation Intensive Training Initial Business Plan Long Term Business Plan 3 Years Available to Complete The Process Long Term Business Plan Not Approved Finish Not Approved Approval Reviewer 1 Reviewer 2 Approval Payment 62

64 Conclusion We hope you find developing a business plan: Rewarding Challenging Profitable 63

65 Initial Business Plan After you have completed 12 hours of workshops, the next step is to complete the Initial Business Plan. This is a simple two page, six question plan The six questions are: Initial Business Plan In several sentences, describe your business Describe the key challenges to your business that you need to address Describe the knowledge and skills you gained from TAA technical assistance workshops? 64

66 Initial Business Plan Questions (continued): In what ways will you apply the knowledge and skills you gained to your business? What changes are you considering to improve your business profitability and to improve your ability to compete with imports? Do you intend to complete a long-term business plan? Initial Business Plan You will also be asked if you are: An owner/manager An owner/manager husband & wife both applied A crew member/employee A crew member/employee operating, or intending to start, a business Your answers will help assign the appropriate business planning consultant to you 65

67 Initial Business Plan Your plan will be reviewed and when approved, will make you eligible to receive up to a $4,000 payment from FSA If not approved, it will be returned to you with suggestions on how to improve it Initial Business Plan The approval criteria are: You must answer all six questions You must make a serious effort to answer the questions Your answers must make rational sense 66

68 Initial Business Plan The approval criteria (cont.): Your answers will be used to assign a business planning consultant to you, so describe your business and plans as best you can Consultants have different experience and expertise Initial Business Plan The Initial Business Plan will be handed out at this workshop If you have finished 12 hours of training by the end of this workshop, you can complete the Initial Plan here and turn it in to the instructor 67

69 Initial Business Plan If you have not completed 12 hours of training or if you do not want to finish it at this workshop You can take it home and mail it in later You can do it online at Initial Business Plan The advantage of doing it at this workshop is that the instructors are available to help you if you have questions 68

Bringing Knowledge to Life!

Bringing Knowledge to Life! Bringing Knowledge to Life! and Business Planning for Agriculture Presented by Warren L. Schauer Business Management Educator Institute for Agriculture and Agribusiness MSU Extension Mission To empower

More information

Business Plan Guidelines

Business Plan Guidelines 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

More information

BUSINESS PLAN OUTLINE

BUSINESS PLAN OUTLINE BUSINESS PLAN OUTLINE I. Background of the Business If an existing business, give a brief history of the company. If a new business, describe in detail what your company will be about. II. Qualifications

More information

Business Plan. Your Business Name

Business Plan. Your Business Name 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.

More information

Write a Winning Business Plan based on Anatomy of a Business Plan & Automate Your Business Plan

Write a Winning Business Plan based on Anatomy of a Business Plan & Automate Your Business Plan Write a Winning Business Plan based on Anatomy of a Business Plan & Automate Your Business Plan 2015 Linda Pinson B usiness Planning: What are the Benefits to You? Every wholesale, retail, and/or service

More information

Building Farmers in the West Factsheet Developing a Business Plan for Alternative, Specialty and Entrepreneurial Agriculture

Building Farmers in the West Factsheet Developing a Business Plan for Alternative, Specialty and Entrepreneurial Agriculture Building Farmers in the West Factsheet Developing a Business Plan for Alternative, Specialty and Entrepreneurial Agriculture A regional partnership to build community and capacity among a new generation

More information

Business Plan Outline

Business Plan Outline 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

More information

The Business Plan. What financial information do I need to include? You should obtain and be prepared to reference:

The Business Plan. What financial information do I need to include? You should obtain and be prepared to reference: 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

More information

How to Write a Business Plan

How to Write a Business Plan How to Write a Business Plan Small Business Development Center (SBDC) A well-written comprehensive business plan forms the basis for the success of any business venture. The business plan is a written

More information

Business Plan Guide for a Small Business

Business Plan Guide for a Small Business 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

More information

Developing a Business Plan: The Key to Business Success

Developing a Business Plan: The Key to Business Success First Nations Development Institute Webinar Developing a Business Plan: The Key to Business Success Southern Risk Management Education Center H.L. Goodwin, Jr. August 18, 2014 Overview Help participants

More information

Analyzing Quicken Farm Records with FINPACK

Analyzing Quicken Farm Records with FINPACK Analyzing Quicken Farm Records with FINPACK FINPACK is a computerized farm financial planning and analysis system. It will help you evaluate your financial situation, explore alternatives, and make informed

More information

Business Plan Guide. NYS Small Business Development Center. Small Business Development Center. Farmingdale State College

Business Plan Guide. NYS Small Business Development Center. Small Business Development Center. Farmingdale State College 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

More information

Business Plan Checklist

Business Plan Checklist Business Plan Checklist Company Name: Owner s Name: Date: It is recommended that the items mentioned be added to the business plan. Items shown in bold are those items which are considered to be extremely

More information

Business Plan Outline

Business Plan Outline 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

More information

Business Plan Worksheet

Business Plan Worksheet SKILLSPEI First Steps for Business Owners Business Plan Worksheet Page 1 of 28 Business Plan Worksheet This outline is designed to assist you in developing a business plan, which will help you determine

More information

Financial Management For Small Farms. 2009, University of Minnesota

Financial Management For Small Farms. 2009, University of Minnesota Financial Management For Small Farms Dale Nordquist Department of Applied Economics 800-234-1111 www.cffm.umn.edu Financial Management For Small Farms Today s agenda Financial management concepts (FINPACK)

More information

Preparing Agricultural Financial Statements

Preparing Agricultural Financial Statements Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records

More information

Business finance. a practical guide BUILDING YOUR KNOWLEDGE. smallbusiness.wa.gov.au. The small business specialists

Business finance. a practical guide BUILDING YOUR KNOWLEDGE. smallbusiness.wa.gov.au. The small business specialists Business finance a practical guide BUILDING YOUR KNOWLEDGE Small Business Development Corporation 13 12 49 smallbusiness.wa.gov.au The small business specialists A practical guide to business finance An

More information

Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557

Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557 Tom Serwatka, Business Advisor MV Small Business Development Center SUNY Institute of Technology serwatt@sunyit.edu 315-792-7557 1 Objectives of Presentation To walk you through the steps needed to create

More information

BUSINESS PLAN FORMAT

BUSINESS PLAN FORMAT Macjo Arcade, Fourth Flour, Room 15E Next to Tuskys Supermarket, Ongata Rongai P.O Box 3029 00200, Nairobi Mobile: 0725-788400 Email: infokenpro@gmail.com Website: URL: www.kenpro.org BUSINESS PLAN FORMAT

More information

Starting your Business Guide

Starting your Business Guide Starting your Business Guide Small Business Resources The material in this document is intended to provide only general information to Canadian Western Bank s clients and the public, and not for the purposes

More information

BUSINESS PLAN TEMPLATE MANUFACTURING

BUSINESS PLAN TEMPLATE MANUFACTURING 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

More information

Farmer-to-Consumer Marketing: The Series

Farmer-to-Consumer Marketing: The Series Farmer-to-Consumer Marketing #6 Financial Management Scope of Financial Management Managing the financial affairs of a direct marketing operation includes: Raising capital Identifying financial objectives

More information

Business Plans for Agricultural Producers

Business Plans for Agricultural Producers E-492 RM3-1.0 10-08 Risk Management Business Plans for Agricultural Producers Dean McCorkle and Stan Bevers* A business plan is a road map for a business. It describes the key functions of the business

More information

Business Planning for Livestock Producers. James McWhorter UF/IFAS Highlands County Livestock Agent

Business Planning for Livestock Producers. James McWhorter UF/IFAS Highlands County Livestock Agent Business Planning for Livestock Producers James McWhorter UF/IFAS Highlands County Livestock Agent Introduction Why create a business plan Components of a business plan Financial statements Five C s of

More information

How to Write an Effective Business Plan

How to Write an Effective Business Plan How to Write an Effective Business Plan A good business plan is an invaluable tool for any business owner, whether you are just starting your new enterprise, expanding or changing strategic direction.

More information

PLANNING FOR SUCCESS P a g e 0

PLANNING FOR SUCCESS P a g e 0 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,

More information

Title Writing A Business Plan

Title Writing A Business Plan Title Writing A Business Plan This A Business is where Plan the helps Paragraph you evaluate Should the Startasdfa feasibility of a new business idea in an objective, critical, and unemotional way. It

More information

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. 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

More information

Business Plans & Financial Statements

Business Plans & Financial Statements Business Plans & Financial Statements Prepared by Dr. Merle Rhoades, Director Small Business Development Center Morgan Community College Agritourism Spring, 2008 BUSINESS PLANS A tool to lead you down

More information

Business Plan Guide. Gloria Glowacki, Associate Director

Business Plan Guide. Gloria Glowacki, Associate Director Business Plan Guide Gloria Glowacki, Associate Director What is a Business Plan? It is a clearly written analysis of your company. It explains the industry in which you compete, your company s goals and

More information

Understanding Financial Performance

Understanding Financial Performance Understanding Financial Performance Getting on Track Authors: Rodney L. Sharp, John P. Hewlett, Jeffrey E. Tranel 1 Introduction Meet Jack and Joanie The Business The Family Family farm with sheep and

More information

Financial Statements and Ratios: Notes

Financial Statements and Ratios: Notes Financial Statements and Ratios: Notes 1. Uses of the income statement for evaluation Investors use the income statement to help judge their return on investment and creditors (lenders) use it to help

More information

A guide to using the business plan template

A guide to using the business plan template A guide to using the business plan template Small Business Development Corporation 13 12 49 smallbusiness.wa.gov.au The small business specialists Writing your business plan This is guide is to assist

More information

KEYS TO A SUCCESSFUL BUSINESS PLAN

KEYS TO A SUCCESSFUL BUSINESS PLAN KEYS TO A SUCCESSFUL BUSINESS PLAN Norma A. Turok Extension Educator Small Business Management Southern Illinois Small Business Incubator 150 E. Pleasant Hill Road Carbondale, IL 62901 618/453-5561 A prospective

More information

WHY WRITE A BUSINESS PLAN?

WHY WRITE A BUSINESS PLAN? KANSAS SMALL BUSINESS DEVELOPMENT CENTER PITTSBURG STATE UNIVERSITY PITTSBURG, KS 66762 PHONE: 620 235 4920; FAX: 620 235 4919 e mail: ksbdc@pittstate.edu WHY WRITE A BUSINESS PLAN? A business plan is

More information

Creating a financial proposal

Creating a financial proposal Creating a financial proposal Business Coach series Presenting your company Targeting your strengths Making the approach BusineSS Coach series Seeking serious money The situation When your company requires

More information

BUILDING A BUSINESS PLAN

BUILDING A BUSINESS PLAN 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

More information

Record Keeping in Farm Management

Record Keeping in Farm Management ExEx 5054 May 2004 Economics COLLEGE OF AGRICULTURE & BIOLOGICAL SCIENCES / SOUTH DAKOTA STATE UNIVERSITY / USDA Record Keeping in Farm Management Agustin Arzeno Area Management Specialist Introduction

More information

BUSINESS PLAN TEMPLATE

BUSINESS PLAN TEMPLATE 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:

More information

1. Planning - Establishing organizational goals and deciding how to accomplish them

1. Planning - Establishing organizational goals and deciding how to accomplish them 1 : Understanding the Management Process Basic Management Functions 1. Planning - Establishing organizational goals and deciding how to accomplish them SWOT analysis - The identification and evaluation

More information

Small-business owners who need

Small-business owners who need BUSINESS PLANS ARE MORE IMPORTANT NOW THAN EVER Jenni Jeras 1 Small-business owners who need financing are smart to do their homework, and that includes creating a comprehensive business plan. Lenders

More information

How To Prepare A Business Plan That Gets Results

How To Prepare A Business Plan That Gets Results Contact Information: www.nebs.ca 1 800 461 7572 WHITE PAPER How To Prepare A Business Plan That Gets Results Writing A Good Business Plan Could Make Or Break Your Business Success A Good Business Plan

More information

BC FARM BUSINESS ADVISORY SERVICES PROGRAM SPECIALIZED BUSINESS PLANNING

BC FARM BUSINESS ADVISORY SERVICES PROGRAM SPECIALIZED BUSINESS PLANNING BC FARM BUSINESS ADVISORY SERVICES PROGRAM SPECIALIZED BUSINESS PLANNING Only one business management area proposal will be supported per eligible farm entity. Project Proposal A proposal from the Farm

More information

RENAISSANCE ENTREPRENEURSHIP CENTER First Finance Class (FIN-1)

RENAISSANCE ENTREPRENEURSHIP CENTER First Finance Class (FIN-1) Finance 1 (FIN-1) RENAISSANCE ENTREPRENEURSHIP CENTER (FIN-1) Learning Outcomes At the conclusion of this class, you should: Know what will be covered in the six finance class sessions. Have reviewed some

More information

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability

Ratio Analysis. A) Liquidity Ratio : - 1) Current ratio = Current asset Current Liability A) Liquidity Ratio : - Ratio Analysis 1) Current ratio = Current asset Current Liability 2) Quick ratio or Acid Test ratio = Quick Asset Quick liability Quick Asset = Current Asset Stock Quick Liability

More information

Measuring Financial Performance: A Critical Key to Managing Risk

Measuring Financial Performance: A Critical Key to Managing Risk Measuring Financial Performance: A Critical Key to Managing Risk Dr. Laurence M. Crane Director of Education and Training National Crop Insurance Services, Inc. The essence of managing risk is making good

More information

BUSINESS PLAN OUTLINE

BUSINESS PLAN OUTLINE I - BUISNESS PLAN OUTLINE INTRODUCTION TO THE BUSINESS PLAN & CONCEPT Before starting a new business or expanding an existing business, you should develop a Business Plan. The Business Plan will serve

More information

The main points are: The Business Plan How To Write It. History of your Business

The main points are: The Business Plan How To Write It. History of your Business The Business Plan How To Write It A business plan has nine key sections. Within each of the following sections there is a list of points that should be covered fully backed up with detailed information

More information

Growing Forward 2 In Newfoundland and Labrador

Growing Forward 2 In Newfoundland and Labrador Growing Forward 2 In Newfoundland and Labrador Business Plan Minimum Requirements Version1.0 Growing Forward 2 in Newfoundland and Labrador - 1 - Business Plan Minimum Requirements Minimum Requirements

More information

What is a business plan?

What is a business plan? What is a business plan? A business plan is the presentation of an idea for a new business. When a person (or group) is planning to open a business, there is a great deal of research that must be done

More information

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:

Business Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes: Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf 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,

More information

Financial Projections. Making sense of the money

Financial Projections. Making sense of the money Financial Projections Making sense of the money The Burning Questions What are your capital needs? Projections How will you get that capital? Structure: Equity or debt? Ownership structure Up-front or

More information

Agricultural Marketing. Direct Marketing Strategies and Opportunities. Commodity or Niche? MARKETS DEFINED

Agricultural Marketing. Direct Marketing Strategies and Opportunities. Commodity or Niche? MARKETS DEFINED Direct Marketing Strategies and Opportunities Mykel Taylor Assistant Professor Dept. of Agricultural Economics NCKS Commercial Enterprises Conference February 25, 2012 Agricultural Marketing Commodity

More information

How Lending Decisions Are Made

How Lending Decisions Are Made How Lending Decisions Are Made Every lending institution has a set of credit standards or guidelines that are used to analyze and approve loans. At Northwest Farm Credit Services, these guidelines ensure

More information

How to Create a Business Plan

How to Create a Business Plan 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

More information

Preparing A Business Plan. Presented By: Raed Daoudi

Preparing A Business Plan. Presented By: Raed Daoudi Preparing A Business Plan Presented By: Raed Daoudi The Business Plan Whether it s a start-up company, an expansion of an existing firm, a spin-off from a parent corporation, or even a project within a

More information

Business Plan for XXX

Business Plan for XXX Business Plan for XXX Version: 1.0 Date: [Elements in italics are indications to explain the business plan concepts: they should be deleted and not appear in the completed version of the business plan.

More information

Business Plan Basic Template

Business Plan Basic Template Business Plan Basic Template Steven Stralser Ph.D. The Center for Professional Development Voice: 800 758 3464 email: sstralser@aol.com www.mbainaday.com The form of every good business plan, although

More information

How to Write a Business Plan

How to Write a Business Plan How to Write a Business Plan Small Business Resources The material in this document is intended to provide only general information to Canadian Western Bank s clients and the public, and not for the purposes

More information

FEASIBILITY ANALYSIS

FEASIBILITY ANALYSIS FEASIBILITY ANALYSIS A. RESPONSIBILITIES An important point to consider is the ability of you (and your associates, if any) to successfully carry out all of the responsibilities that will be required to

More information

Building a Business Plan Part A: Answering the Key Questions

Building a Business Plan Part A: Answering the Key Questions Session Seven Building a Business Plan Part A: Answering the Key Questions If you fail to plan, you plan to fail. Anonymous Overview: Up to this point in the course, as a member of the Aspira Business

More information

Accounting Is a Language. Financial Accounting: The Balance Sheet BALANCE SHEET. Accounting Information. Assets. Balance Sheet: Layout

Accounting Is a Language. Financial Accounting: The Balance Sheet BALANCE SHEET. Accounting Information. Assets. Balance Sheet: Layout Accounting Is a Language Financial Accounting: The Balance Sheet Richard S. Barr Purpose: providing information Financial Statements Summarize accounting information Examples We need to know what the numbers

More information

HOW TO PREPARE A BUSINESS PLAN. A Guideline for Entrepreneurs

HOW TO PREPARE A BUSINESS PLAN. A Guideline for Entrepreneurs HOW TO PREPARE A BUSINESS PLAN A Guideline for Entrepreneurs Table of Contents I. Introduction II. III. IV. Summary A. The Company and it Founders B. Market Opportunity C. Products and Technology D. Financial

More information

Financial Statements

Financial Statements 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

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

FREQUENTLY ASKED QUESTIONS

FREQUENTLY ASKED QUESTIONS FREQUENTLY ASKED QUESTIONS 1. Do I have what it takes to own/manage a small business? You will be your own most important asset, so an objective appraisal of your strengths and weaknesses is essential.

More information

A PRACTICAL GUIDE TO WRITING A BUSINESS PLAN

A PRACTICAL GUIDE TO WRITING A BUSINESS PLAN 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

More information

Developing Business Plans and Funding Proposals

Developing Business Plans and Funding Proposals 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

More information

SCANA. A Guideline for Preparing a Business Plan. Small Business Development Center. The information in this document is taken from:

SCANA. A Guideline for Preparing a Business Plan. Small Business Development Center. The information in this document is taken from: The information in this document is taken from: A Guideline for Preparing a Business Plan Published By: UNIVERSITY OF SOUTH CAROLINA Small Business Development Center "Small businesses are big business"

More information

Business Plan Template

Business Plan Template Staunton Creative Community Fund 10 Byers Street, Staunton, VA 24401 540-213-0333 www.stauntonfund.com courtney@stauntonfund.com Business Plan Template So you have an amazing, innovative idea for a new

More information

THIS Target Market. SECTION Marketing. SHOULD Operations. NOT Finance

THIS Target Market. SECTION Marketing. SHOULD Operations. NOT Finance BUSINESS PLAN Title page Executive summary Table of contents (with page numbers) Promoters/Management Product/Service THIS Target Market SECTION Marketing SHOULD Operations NOT Finance BE Capital requirements

More information

Business Plan Workbook

Business Plan Workbook 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

More information

Business Plan Template - Guide

Business Plan Template - Guide Business Plan Template - Guide This business plan is a generic template suitable for all types of businesses. However, you should modify it to suit your particular business. Work through the sections in

More information

Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE

Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE Financial Ratio Analysis A GUIDE TO USEFUL RATIOS FOR UNDERSTANDING YOUR SOCIAL ENTERPRISE S FINANCIAL PERFORMANCE December 2013 Acknowledgments This guide and supporting tools were developed by Julie

More information

Guide to Financial Ratios Analysis A Step by Step Guide to Balance Sheet and Profit and Loss Statement Analysis

Guide to Financial Ratios Analysis A Step by Step Guide to Balance Sheet and Profit and Loss Statement Analysis Guide to Financial Ratios Analysis A Step by Step Guide to Balance Sheet and Profit and Loss Statement Analysis By BizMove Management Training Institute Other free books by BizMove that may interest you:

More information

Chapter 002 Financial Statements, Taxes and Cash Flow

Chapter 002 Financial Statements, Taxes and Cash Flow Multiple Choice Questions 1. The financial statement summarizing the value of a firm's equity on a particular date is the: a. income statement. B. balance sheet. c. statement of cash flows. d. cash flow

More information

BUSINESS PLAN OUTLINE

BUSINESS PLAN OUTLINE BUSINESS PLAN OUTLINE Use the following outline to summarize your business planning decisions. Title each section of your written plan as indicated in the outline. Write, in your own words. Answers to

More information

BUSINESS PLAN TEMPLATE

BUSINESS PLAN TEMPLATE 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...

More information

BUSINESS TOOLS. Understanding Financial Ratios and Benchmarks. Quick Definitions:

BUSINESS TOOLS. Understanding Financial Ratios and Benchmarks. Quick Definitions: Understanding Financial Ratios and Benchmarks Historically, great production drove success in agricultural businesses. To maintain long-term success in today s volatile and highly competitive marketplace,

More information

ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN

ALL NATIONS TRUST COMPANY SAMPLE BUSINESS PLAN 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

More information

Introduction to Accounting

Introduction to Accounting 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

More information

Sample Due Diligence Checklist

Sample Due Diligence Checklist Sample Due Diligence Checklist 01.0. CORPORATE ORGANIZATION AND HISTORY 1.1. - Overview of corporate legal structure, banking relationships (other than transaction financing), organizational charts and

More information

Application for Business Credit

Application for Business Credit Application for Business Credit Please complete all relevant sections of the Application form and attach copies of requested information to ensure we are in the best possible position to assess your lending

More information

Acquisition Checklist

Acquisition Checklist General Information Exact corporate name Address Date and state of incorporation States in which the company is qualified to do business Location of minute books, by-laws, and certificate of incorporation

More information

Writing a Business Plan

Writing a Business Plan Writing a Business Plan Small Business Development Center Georgia State University 404-651-3550 web: www.gsu.edu/sbdc Writing a Business Plan Georgia State SBDC 1 Why Write a Business Plan? A Business

More information

Agribusiness Procedures

Agribusiness Procedures Agribusiness Procedures S E L E C T I N G T H E F O R M O F B U S I N E S S Business Forms Taxes Regulatory Continuity Sole Proprietorship Partnership S-Corporation Corporation Business does not file or

More information

7. Explain the basic assumptions and principles underlying financial statements.

7. Explain the basic assumptions and principles underlying financial statements. CHAPTER 1 Introduction to Financial Statements Study Objectives 1. Describe the primary forms of business organization. 2. Identify the users and uses of accounting information. 3. Explain the three principal

More information

LOAN APPLICATION. Name of Business (Legal Name): Address: City, State, Zip: Business Phone: Federal Tax ID #:

LOAN APPLICATION. Name of Business (Legal Name): Address: City, State, Zip: Business Phone: Federal Tax ID #: LOAN APPLICATION Name of Business (Legal Name): Business Phone: Federal Tax ID #: Fax: Principals Name: Phone: Social Security #: Type of Business Sole Proprietorship Corporation Partnership Date Established

More information

Starting a Small Business

Starting a Small Business Starting a Small Business Starting and managing a business takes motivation, desire and talent. It also takes research and planning. Like a chess game, success in small business starts with decisive and

More information

IDG Ventures Vietnam Guide to Writing a Business Plan

IDG Ventures Vietnam Guide to Writing a Business Plan IDG Ventures Vietnam Guide to Writing a Business Plan Initial Phase: Formulating the Idea You have a great idea for a company now is the time to do your homework. Before writing a business plan, extensive

More information

The Nature of Accounting Systems

The Nature of Accounting Systems 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

More information

Using Your Business Plan. Monitor and guide the growth of your business more effectively

Using Your Business Plan. Monitor and guide the growth of your business more effectively Using Your Business Plan Monitor and guide the growth of your business more effectively Learning Objectives At the end of this module, you will be able to: Use your business plan as a blueprint to manage

More information

but that was then. Today, those in agriculture may find themselves competing against lower-risk businesses for the services of a lender.

but that was then. Today, those in agriculture may find themselves competing against lower-risk businesses for the services of a lender. There was a time when lenders knew the financial pressures and capitalization needs of those involved in agriculture. They knew just about every member of the agricultural community by name and probably

More information

K-12 Entrepreneurship Standards

K-12 Entrepreneurship Standards competitiveness. The focus will be on business innovation, change and issues related to the United States, which has achieved its highest economic performance during the last 10 years by fostering and

More information

Business Information Series 2012 Vol. I No.5 WRITING A BUSINESS PLAN. Dubai Business Guide Operations

Business Information Series 2012 Vol. I No.5 WRITING A BUSINESS PLAN. Dubai Business Guide Operations Business Information Series 2012 Vol. I No.5 WRITING A BUSINESS PLAN Dubai Business Guide Operations Business Support Department Dubai Chamber of Commerce and Industry 3 Published by: Dubai Chamber of

More information

How To Prepare A Business Plan

How To Prepare A Business Plan 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: ncd@northcentraldevelopment.ca

More information

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION

ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION ICAP GROUP S.A. FINANCIAL RATIOS EXPLANATION OCTOBER 2006 Table of Contents 1. INTRODUCTION... 3 2. FINANCIAL RATIOS FOR COMPANIES (INDUSTRY - COMMERCE - SERVICES) 4 2.1 Profitability Ratios...4 2.2 Viability

More information