SD CEO South Dakota Center for Enterprise Opportunity

SBA Business Administration Resource Partners SBDC Small Business Development Center SCORE Service Corp of Retired Executives SD CEO South Dakota Center for Enterprise Opportunity Together we can provide the critical skills, knowledge, tools and support network to start and grow a business. The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

Starting a business is like… This slide is meant to add some levity to the presentation and prime the audience for positive feeling/interaction by getting them to laugh. Start by relating a story from your own life where you thought things were going along really well and all of a sudden they were not (and how you moved on). Play the clip and explain that this is a light, funny interpretation of what its like starting a company. **Update video to either a new video or a high def version**

Creating a Business Plan The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).

Five Tips Before You Start Who, what, when, where, how and why Focused, clear- 10 pages or less Specific business objectives and goals Force logic and discipline into a business Updated regularly a compelling story about your business, explaining who, what, when, where, how and why. 2. Your plan should be focused and clear. It is not about the number of pages or style of the cover. 10 pages - no longer than 40 3. define specific business objectives and goals with general parameters to guide the organization. 4. force logic and discipline into a business. 5. A good business plan is a living document. It should be updated regularly The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).

Cover Page Name of Company Address Phone Owner(s) Name Date of Plan The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

9 basic elements to every business plan Executive Summary Business Description The Market and Competition The Product or Services Marketing/Selling Management and Personnel Funding Request (investment) Financial Data Appendices My Business Plan The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

#1 Executive Summary Write this section last Be succinct One or two paragraphs No more than 2 pages maximum State your present situation and the goals for your business The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).

#2 Business Description and Vision Mission Statement Describe Your Business Describe your Product(s)/Services Proprietary Information Regulations Facility and Equipment Operational Needs Barriers The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

#3 The Market and Competition Target Market Industry Trends Competition Market Entry Location Methods of Distribution Pricing The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

#4 Products or Services ACTUAL PRODUCT SERVICE ATMOSPHERE   The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).

#5 Marketing and Selling Marketing Mix Advertising Social Media! idea Promotion and Event Marketing Direct Marketing The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).

#6 Management and Personnel Ownership Composition Management Personnel Security Consultants The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

#7 Funding Request Current funding requirement Future funding requirements over the next five years How you will use the funds you receive Any long-range financial strategies that you are planning that would have any type of impact on your funding request. The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).

#8 Financial Data Summary of Financial Need Historical financial statements Financial projections Description of the start-up costs Total estimated cost of the project, including the need for working capital and the equity invested into the project. Make sure that your projections match your funding requests; creditors will be on the lookout for inconsistencies. It's much better if you catch mistakes before they do. If you have made assumptions in your projections, be sure to summarize what you have assumed. This way, the reader will not be left guessing.   Financial Documentation With the exception of high-tech industries that require long periods of research, start-up companies must expect to generate income in a short period of time. include historical financial statements, financial projections, and a description of the start-up costs. The following are major documents you will want to include in your business plan.   Summary of Financial Need Outline total financial need and why you are applying for a loan. Describe the total estimated cost of the project, including the need for working capital. Describe the equity invested into the project. Equity is funding invested into the business that is not repaid on a set schedule; it is typically money the owner or investors contribute to the project. The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO 15

#8 Financial Data (CON’T) 3-Year Income Projections- supported by market analysis Statement of Cash Flow - cash in - money in and out over 3 year Balance Sheet - assets, liabilities and net worth Break-even Analysis - company’s operating expenses exactly match the sales or service volume Personal Financial Statement Tax Returns - personal and business Credit Reports Copies of Leases and Contracts The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO 16

#9 Appendices Checklist SD CEO Credit history (personal & business) Resumes of key managers Product pictures Letters of reference Details of market studies Relevant magazine articles or book references Licenses, permits, or patents The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

#9 Appendices Checklist SD CEO Legal documents Copies of leases Building permits Contracts List of business consultants, including attorney and accountant The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA). SD CEO

Helen Merriman, Director CONTACT US Helen Merriman, Director Helen.Merriman@bhsu.edu www.BHSU.edu/SDCEO The SD CEO at BHSU is funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA).