Athletic Training Management Chapter 13 Developing a Business Plan

Beginning Business plans tell in detail what the business is Document created to establish management principles to run the business, communicate within the structure and without, and as a basis for future planning Using the document will enable you to compare the projections of the business with actual accomplishments

Beginning Must have a burning desire to reach goals Some good things about running your own business include Be your own boss Effort directly benefits you Endless challenges and opportunities to learn Businesses fail Lack of experience Insufficient capital

Beginning Competition is also a variable Poor location Overinvestment in fixed costs Personal use of business funds Competition is also a variable Failure to understand market forces can be fatal

Before You Start United States Small Business Administration is a great website to start with at http://www.sba.gov/ The first thing to do is decide WHY you want to be in business Is there a need? Do you want to try? Are there sufficient patients to maintain you and your competition?

Before You Start SBA suggests you need to assess whether you will have a business advantage over the competition Can you deliver superior services? Can you create a demand? Know your competition Establish the legal structure Restrictions of the type of business and liabilities assumed

Before You Start How are earnings distributed? Sole proprietorship, partnership, corporation How are earnings distributed? Salary to owners? Benefits? Will part of the earnings be reinvested in better or more equipment Capital needed for start-up Will there be a free-standing structure, space in existing building, affiliation?

Before You Start Sole proprietorship Equipment Least costly start-up May share it if sharing space or affiliated Advantage of affiliation is buying power of a large medical corporation Sole proprietorship Least costly start-up Fees to register business name, license, and possibly certificate of occupancy Disposal of medical waste Owners have final and complete authority to make all decisions

Before You Start Business exists until dissolved or death of the owner Biggest disadvantage is owners have unlimited liability for all debts against the business Both business and personal assets are at risk Partnerships are most commonly either general or limited Standard partnership agreements specify what each partner brings in and has responsibility for

Before You Start Corporation is most complex Partners are generally liable to the extent of their contribution unless proved negligent Corporation is most complex Owners have specific shares based on what they put in No personal liability Control through a board of directors Limited liability company is like a partnership with the limited liability of a corporation

Business Plan Outlines five areas at the minimum (see figure 13-1, p 185) Overview Marketing plan Financial plan Operations Summary