How to Create an Effective Business Plan Entrepreneurship Unit 3, Lesson 2

Goals Students can identify resources for new business ideas. Students will recognize different business opportunities. Students will identify their own personal goals.

Terms Small Business Administration Small Business Development Center Service Corps of Retired Executives Trade Association

Research the Business Plan The first step of developing a business plan is to be able to convince the reader that you have a practical business idea. Some issues that must be researched include A location for business, The equipment /supplies that you will need, The competition, and The pricing of product/service. It is important that the business plan be well thought out and complete to convince the reader that you have a business that is worthy of investment. The plan needs to tell where the business will be located, what equipment and supplies will be needed to get started, who the competition is, and what your pricing will be for the product.

Research the Business Plan Community, Government, and Professional Resources Small Business Administration (SBA) Provides management assistance for current and prospective small business owners. Provides financial assistance. Provides counseling and training for small business owners. Provides disaster assistance Provides a voice for small businesses on legislative issues. There are numerous free resources available for entrepreneurs to use. SBA, SCORE, and SBDC all provide valuable, free information from individuals who have experience. These resources are invaluable for entrepreneurs who own small business or who are thinking of starting a business.

Research the Business Plan Community, Government, and Professional Resources (Continued) Small Business Development Centers (SBDC) Counselors provide free one-on-one assistance in developing a business plan Provide inexpensive workshops on topics to help develop a business plan Formed as a cooperative effort of the private sector, educational community, and federal, state, and local governments Enhance economic development by providing small businesses with training and technical assistance The SBDC is a part of the SBA. They have offices in most major cities and have 63 networks in the U.S. (with over 900 delivery points). SBDC provide services such as development of business plans, manufacturing assistance, financial packages, and procurement contracts. Special emphasis areas include international trade and export assistance; e-commerce; technology transfer; assistance for veterans, including reservists, active duty, and disabled personnel returning from deployment; disaster recovery assistance; IRS, EPA, and OSHA regulatory compliance; research and development, and market research. 

Research the Business Plan Community, Government, and Professional Resources (Continued) Service Corps of Retired Executives (SCORE) More than 10,500 retired executives who volunteer their time to provide entrepreneurs with real-world advice and knowledge Set up a meeting with a SCORE volunteer, work with a SCORE volunteer over the Internet, or attend a workshops sponsored by SCORE SCORE sends out retired executives to assist small business owners. They provide onsite counseling for free or at very low cost. They also provide workstations, training, and seminars to help small business owners become successful.

Community, Government, and Professional Resources Chamber of Commerce – A local organization of businesses whose goal is to further the interests of business. Trade Associations – Organizations made up of professionals in a specific industry. Professional Consultants – Paid professionals who provide guidance. Financial Institutions – Local banks can provide counseling and financial assistance. Success revolves around establishing a solid network of professionals who can provide advice and service when needed. These organizations can help with different aspects of small business. It is recommended that small business owners use different resources. Some services are free for small business owners, and others come at a small cost and others--such as professional consultants--can be more expensive. But if these professionals can identify weaknesses in the business and help fix them, the time and money will be well spent.

Print Resources Books Magazines Government Documents SBA Publications While the Internet is used more frequently today than books for research, books may have the more valid, research-based information necessary for starting a business.

Online Resources Websites SBA SBDC SCORE www.sba.gov www.sba.gov/aboutsba/sbaprograms/sbdc/index.html SCORE www.score.org Websites provide up-to-date information for starting a new business.

Mistakes in Business Planning Unrealistic Financial Projections Undefined Target Market Poor Research Ignored Competition Inconsistencies in the Business Plan While the Internet is used more frequently today than books for research, books may have the more valid, research-based information necessary for starting a business.

Assignments Inform Assignment #1 Split the class into five groups. The five groups will use the Internet to research SBA, SBDC, SCORE, the chamber of commerce for your community, and professional organizations representing the career interests in that group of students. Each group is responsible for teaching the class about the organization they have researched. Digital group presentations will be evaluated using a rubric. Location, Location, Location Assignment #2 The success of a business depends heavily upon the location. The business must be located conveniently for the target market. The location should be easily accessible by traffic going both directions. There should be plenty of parking spaces available in a well-lighted parking lot. There should be a high level of consumer traffic flow daily. Ask students to select an available business location in the community, conduct research, observe the location, and write a report explaining why the location is a good/poor choice for a business. The report will be evaluated using a rubric. Entrepreneurship Newscast Assignment #3 Ask students to locate two articles in the library or on the Internet about successful entrepreneurs and write the Top Ten Points for each article. Students will share their information in class, using digital presentations for their newscasts. Digital presentations will While the Internet is used more frequently today than books for research, books may have the more valid, research-based information necessary for starting a business.