Business Plan Introduction The purpose of this workshop is to provide an overview of what must be done to create a good business plan. The major topics of marketing, finance, operations, etc. are to be mentioned, but the presenter should make it clear that other workshops will provide more detail and that the teachers and coaches will be available to help the teams better grasp the concepts. © Career Partners, Inc. 2017-18

Why is a Business Plan Important? This is a video

You inherited Chuck’s Auto Rinse Your Challenge! You inherited Chuck’s Auto Rinse A car wash business! If you are successful, you inherit the rest of his estate - $1,000,000.00+ = Students should have already read the “About Chuck” page. Remind them that the definition of success for Chuck is: that you can withdraw $60K salary and that the business has a $50K positive balance by the end of the year. These are required for the student to get that $1M.

What Do You Need to Know to Get Started? Your Facility Chuck already has a facility – so location is not discussed here – it will be discussed in the operations section of the presentations. What Do You Need to Know to Get Started?

What is a Business Plan? When you first decide to go into business, you need a plan of action. Business Plans are needed to optimize growth and development according to changing priorities throughout the life of the business. A Business Plan will help you: Get the capital (i.e. funds/money) to start/grow your business. Set you on a path to creating/developing your business. Students need to understand why they would ever need a business plan. What is it for? What does it mean? How can it help or benefit them?

What is a Business Plan? A formal statement of the goals of your business Your plans for reaching those goals Marketing plan Financial plan Justification as to why you believe the goals are attainable with the above plans A business plan precisely defines your business, identifies your goals and serves as your firm's resume. Its basic components include a current and pro-forma (means “forecasted”) balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package and an absolute necessity for potential investors who want to see how you intend to provide a return on their investment. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals. Background information about the company and/or team attempting to reach those goals.

Marketing Finance Operations Written Plan Oral Pres. Flowchart Topics Marketing Finance Operations Written Plan These are the same topics as on the E Squared flowchart. Emphasize the importance of using the flowchart to bring order to their preparation of the business plan. Oral Pres.

WHAT IS IT? Product / Service It’s not just the water Is Chuck’s Auto Rinse a product or service? It’s not just the water It’s not just the soap It’s not just the tire cleaner It’s not just the blow dryer It’s not just the free vacuums WHAT IS IT? Exercise: Have teams discuss just what the product or service is that Chuck provides. Then choose 2 or 3 teams to stand up and tell the class its thoughts.

Gathering Market Data Look at an existing and/or similar business Find similar businesses in other places Always shop the competition Get out there! Make phone calls! Ask! Ask! Ask! Gathering data is very important – the marketing part of the plan will be covered in more detail in the Marketing Presentation. Let students know that this slide is about ways they can gather information and compare what they think to what is really going on in the area. As an example of why it is important to do this research, you may want to mention various types of car wash services for their consideration: Full service tunnels with detailing Limited service tunnels with no detailing Automatic stationary facilities with no services Self-service facilities with no services

What is the customer experience? Project - Students Describe the market Who is the customer? Size? Location? What share of that market do you want to capture? How can you justify that share? Exercise: Have teams define Chuck’s market. Give students time to write their answers on paper and then discuss with their groups. Then choose 2 or 3 teams to stand up and tell the class their thoughts. What is the customer experience?

Project - Students On a piece of paper write down what you think you need to know in order to get started in this business. List at least 10 questions you would like to ask someone. Discuss your questions with those at your table and make any changes you feel necessary. Be prepared to share! The purpose of using Chuck’s Auto Rinse is to have the students start thinking about what they may want/need to know in order to run the business. It will also allow the students a small break from just watching slides. Mill around the room with the students and listen to what they are discussing – you may offer pointers or lead them in certain directions. Remind them that they are turning this in for a grade at the end of the presentation. Ask for volunteers to present their questions and explain why they feel they need that information. Select some groups if you don’t get any offers. This will allow the students to see other ideas that they might not have thought of themselves.

www.esquaredculpeper.com Flowchart Use Open your Chrome Book to the flowchart. This is your life support! What does a diamond indicate? What does a rectangle indicate? Discuss the basic symbols used in a flowchart and explain how the E Squared Flowchart will guide the teams through the entire process. Rectangle – Process Diamond – Decision Explain to the students that the flow-chart has been designed to help walk the students through this process. Using this flowchart and answering the questions within each process will help them develop the outline of their business plan. Also let them know that they will be given a copy of the full flowchart by their instructors/teachers. Familiarize yourself with the website: www.esquaredculpeper.com

Top of 1st page Flowchart Use Discuss the basic symbols used in a flowchart and explain how the E Squared Flowchart will guide the teams through the entire process. Rectangle – Process Diamond – Decision Explain to the students that the flow-chart has been designed to help walk the students through this process. Using this flowchart and answering the questions within each process will help them develop the outline of their business plan. Also let them know that they will be given a copy of the full flowchart by their instructors/teachers.

Look at the large box on page 1 of the flowchart. Flowchart Use Look at the large box on page 1 of the flowchart. There are many things to consider but don’t be overwhelmed! Use the reasonableness tests to determine whether or not: There is a need/desire for the product If there is, who will be your customers? (i.e. target market) How much can you produce it for and how much can you sell it for? This will indicate if you will be able to make money on it. Competition? Is their a frozen yogurt near by? Etc. How will you run your business? If the answer is no or “I don’t know” then you might not have an idea that should be pursued or you may have to do more research. Exercise: Have students (on the same piece of paper) write down what they think are the answers to the questions in the rectangle. Then have them once again discuss it in their groups and be ready to present. Your teacher & coaches will guide you through the process.

Bottom of 1st page Flowchart Use Discuss the basic symbols used in a flowchart and explain how the E Squared Flowchart will guide the teams through the entire process. Rectangle – Process Diamond – Decision Explain to the students that the flow-chart has been designed to help walk the students through this process. Using this flowchart and answering the questions within each process will help them develop the outline of their business plan. Also let them know that they will be given a copy of the full flowchart by their instructors/teachers.

How will YOU succeed in running his ? NOW At this point you know about as much as you’ll ever know about how Chuck ran his car wash. NOW How will YOU succeed in running his ?

This is an actual image of the 5-Year P&L required. Explain that it is not nearly as complex as it first appears. Only the yellow cells need to be filled in. The others will be generated automatically from the data entered on this Excel worksheet as well as other worksheets in the financial workbook.

E Squared Business Plan Template Everything you need to know in one document Your best source for writing a business plan Again, familiarize yourself with the E Squared website and the business plans from previous years www.esquaredculpeper.com Students will be given a business plan template to follow by their instructors/teachers. This template should be followed by students – it will help them decide what questions need to be answered and where in the plan itself.

Investment Evaluation Rubric Points 10 17 33_______ 60 40_______ Total 100 Written Business Plan Clarity & quality ------------ Market analysis ------------ Financial analysis ---------- Hold up a copy of the Scoring Rubric and ask if the students have seen it. Stress its importance. This is what the judges will look at. It is the same basic information that real-life venture capitalists will look at. The relative worth of each business plan will be examined using the rubric. Oral Presentation ------

QUESTIONS Questions?