Business Plans Obj. 4.03-4.04

Purpose & Use Describes a new business Uses: To obtain financing Lenders need to know what you plan to do & how you plan to do it. To serve a living guide to the business Helps organize & analyze data Helps you remember all the details To provide a start-up blueprint Contains all you have learned, through reading, interviewing, researching, organizing about your business

Section 1-Executive Summary Type of Business Brief description of your major/service involved. Include Purpose of the business, description of its products, type of business, the amount of loan needed for start-up and how you plan to use the money. Should be no longer than 1-page

Section 2-Description and Analysis of the Business Situation Self-analysis: Resume Trading and analysis: geographic, demographic, and economic areas; competitive advantages of proposed business over competition Customer analysis: target market: income, sex, age, family size, family life cycle, occupation, education, ethnicity, social class, psychographics, (picture of your customer) Analysis of location: address, traffic patterns, parking spaces, availability, square footage (size), and cost Proposed organization: type of ownership: sole proprietorship, partnership, corporation; steps in starting to form the business; planned personnel

Section 3-Prosoped Marketing/Promotion Plan Proposed product or service: equipment, details of product(s) or service(s) to be offered (menu), potential suppliers or manufacturing plans. Five items prepared from the menu. Proposed pricing policy: cost, markups (prices on menu), relationship to competitors, menu Promotional activities: Personal promotion: non-media sales plan (how will customer be greeted, waited on, etc), staffing (how will they be dressed, provide a picture or sketch of the uniform), and merchandising appeal (what will establishment look like, provide a floor plan) Non-personal promotion: media (newspaper, TV, billboard, radio, etc, provide a copy), basic appeal, and initial promotion plan (grand opening). Place: channel of distribution from manufacturer or service provided to consumer

Section 4-Proposed Financing Plan Projected income/cash flow statement: projected budget describing income and expenditures for the first year. What is your start-up cost to open your business? Personal/internal capital: earnings, borrowing, long-term equity External capital: short-term and long-term borrowing, long-term equity Repayment plan: plan to repay borrowed funds or provide return on investment to equity funds

Agencies Involved State Department of Labor Chamber of Commerce SBA Provides businesses with information regarding employer responsibilities in relation to unemployment insurance Chamber of Commerce Purpose is the stimulation of local economic growth SBA Federal agency that provides assistance and advise on how small business can increase revenues and profits SCORE Nonprofit agency that helps council and advise small businesses. Closest is Wilmington, New Bern SBDC Small Business Development Centers Provide management assistance to current and prospective small business owners.