The business plan Mr Kuhn

What are we doing today? Introduction to the Business Plan Examining the template The First Steps Find your group Pick a business idea (Stick to yesterdays plan or venture on your own) Beginning the Business Plan General Business Description

What is a business plan? A Business Plan is a written description of your business’s future, a document that tells what you plan to do and how you plan to do it A business plan will describe how you plan to grow your business from its very start, to where you would like it to be sometime in the future (aim for 3-5 years) It will include nearly aspect of your business including finances, marketing, goal setting, ect…

When to start writing a business plan Short answer is now While the Business Plan is a great way to impress investors and get funding, it is also a road map of how to make your company grow right from the start Writing a Business Plan forces you to review everything at once. As all aspects of your business are interconnected it is important for you to look at all aspects together and right from the start It is important to have important milestones right from the start to make sure you are on schedule and your business is progressing (Hold yourself accountable!) Make your next step a reality, don’t plan on raising money without a definite plan for that money in the future And of course, your business plan is a good way to get investors

Why write a business plan Confidence and Success Data from the Panal Study of Entrepreneurial Dynamics, a national generalizable survey of more than 800 people in the process of starting businesses, found that writing a plan greatly increased the chances that a person would actually go into business. “Two and a half times more likely to get into business“ Money Factor Securing funding almost always requires a formal plan All venture capitalists, banks, government backed banks, and investors will require to see a plan Planning for the Future While starting a new business it is tempting to focus on just now, the future is arguably even more important It is better to analyze risks and failures before they happen than just winging it

How long should your plan be? Traditionally Business Plans have been over 50 pages long Now it is acceptable to have business plans anywhere from 25-40 pages long If it is short make sure you summarize exactly what you need to say If it is long make sure you are not dragging on thoughts you could explain in a sentence Efficiency is key Charts and pictures are the exception to the rule, the use of such items will make your plan longer but will liven up the pages

Finding the template When on the class website, go to Entrepreneurship > Projects > The Business Plan Scroll down until you see Business Plan Templates Download “Suggested Template” Once open, click enable editing near the top of the page Save this template

What are we focusing on this week What are we focusing on this week? Item III: The General Company Description What business will you be in? What will you do? This section wants you to briefly describe what you business is, and what it does. Writing down what your company is gives it an identity and direction Mission Statement Many companies have a brief mission statement, usually in 30 words or fewer, explaining their reason for being and their guiding principles. If you want to draft a mission statement, this is a good place to put it in the plan Company Goals and Objectives Goals are destinations—where you want your business to be. For example, a goal might be to have a healthy, successful company that is a leader in customer service and that has a loyal customer following Objectives are progress markers along the way to goal achievement. Objectives might be annual sales targets and some specific measures of customer satisfaction.

What are we focusing on this week What are we focusing on this week? Item III: The General Company Description Business Philosophy What is most important to your business? Eg. The environment, customer satisfaction, realistic and affordable pricing, ect… To whom will you market your products? Keep this part brief, this will be discussed in great detail later when speaking of marketing Describe your industry Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?

What are we focusing on this week What are we focusing on this week? Item III: The General Company Description Describe your most important company strengths and core competencies What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?

What are we focusing on this week What are we focusing on this week? Item III: The General Company Description Legal form of ownership Sole proprietor: A person who owns the business and is personally responsible for its debts Partnership:A partnership is a non-incorporated business that is created between two or more people. In a partnership, your financial resources are combined with those of your business partner(s), and put into the business. Corporation:When you incorporate your business, it is considered to be a legal entity that is separate from its shareholders. As a shareholder of a corporation, you will not be personally liable for the debts, obligations or acts of the corporation. Why have you selected this form? For more information on advantages and disadvantages of these ownership structures visit: http://www.canadabusiness.ca/eng/page/2853/