Chapter 3.1 The Business Plan!

Goals Explain the purpose of writing a business plan. Describe the importance of a business plan. List and Describe the basic elements of a business plan

Lemonade http://www.youtube.com/watch?v=25d4kj1unb0

Business Plan Now that you have a business idea, you need to start making plans! The Business plan is a written document that describes all the steps necessary for opening and operating a successful business

Importance of the Plan Helps you thinks about all the aspects of your business Will help you secure financing Helps you communicate your ideas to others Can serve as a tool for managing your business

Basic Elements of a Business Plan A business plan should include: Introduction Marketing Financial Management Operations Concluding Statement

Sweet Tea http://www.youtube.com/watch?v=LcuiS294bZo

Introduction / Executive Summary This is the first page. You need to sell your idea! Included: Identification of the problem your business will solve A detailed description of the business and its goals The ownership of the business and the legal structure The skills and experience you bring to the business The advantages you and your business have over your competitors.

Marketing Product and Services Market – Who are your prospective customers? Industry External factors – High competition, lack of suppliers Growth potential of the industry Economic trends Technology trends Location

Financial Management Identification of risks Projected income/cash flow statement Projected three year plan – plan for growth Capital and repayment plan

Operations How will the business be managed on a day-to-day basis Hiring and personnel procedures Insurance Lease or Rental agreements Equipment needs

Concluding Statement Summarize the goals and objectives you have for your business