Entrepreneurship SAE’s Creating A Business Plan

Who is an Entrepreneur? An Entrepreneur is a person who organizes and manages a business, assuming a risk for the sake of profit. Any person (any age) who starts and operates a business is an entrepreneur.

What is an Ag Entrepreneurship? The Entrepreneur plans, implements, operates, and assumes financial risks in a farming or agricultural business. In Entrepreneurship programs, the student owns the materials and other required inputs, and keeps financial records to determine profits.

Entrepreneurship Examples Service Lawn mowing Pet Sitting Fishing Guide Equipment Repair Product Raise & Sell Fish Bait Vegetable Farm Goat Soap Wool Products

Entrepreneurship Advantages You are your own boss Enjoy the profits from your efforts! Sense of pride in your business Flexibility in your work schedule Disadvantages Need to put in long hours Start up money is necessary May loose money the first few years Must be self-motivated

Why do you need a strong business plan? 1. To see if your business ideas will work. 2. To outline each area of the business. 3. To set up milestones. 4. To learn about the market. 5. To determine your financial needs. 6. To monitor your business. 7. To help attract customers.

7 Parts of a Business Plan 1. Executive Summary 2. Product Description 3. Market Analysis 4. SWOT 5. Marketing & Sales 6. Goal Setting 7. Financial Plan

Part 1: Executive Summary Your business name & location A brief explanation of customer needs and your product or services Your Businesses Vision or Mission An introduction of yourself (and your team if you have one)

Part 2: Product Description Research & Development What do you still need to learn to be able to create your product or offer your service? Do you need to experiment with a “magic formula” to make your product perfect? Details about your products or services What will you be selling? List all products and services What products do you use to create your final product?

Part 3: Market Analysis Research, which should focus on: The industry- What are the current trends? The Target Market- Who are you trying to sell your product to? The competition in the target market- Who else is offering your product/service? This can be done by surveying future customers, performing phone interviews, etc.

Part 4: SWOT Analysis

Part 5: Marketing & Sales Advertising Strategy Where are you going to advertise? Sales Strategy How do you plan on making sales? Identify & Create forms of communications: Flyers, Newspaper/Radio Ads, Business Cards

Part 6: Goal Setting Set SMART Goals for your business How many items do you want to sell? By when? What skills do you want to learn through your business? When do you want to run advertisements?

Part 7: Financial Plan Projected Expenses & Incomes What money will you need to spend to create an inventory? What equipment do you need to purchase or lease? How much do you plan on selling each year? (You should create at least a three year plan) Provides a budget for all marketing plans (including how much money it will cost to print your flyers/ business cards and run any ad’s) Will you require a loan? If yes, from whom? What is your plan for paying the loan back?

Now What?!?! If you plan on having an Entrepreneurship SAE, it is required to create a business plan! Starting in January, Mrs. Knowlton will have after school hours to help students who want to have an entrepreneurship, begin writing their business plans! Every Tuesday in January (except exam week); from 2:30- 4:00pm All hours spent writing and researching for your business plan count as SAE hours! If you want to learn more about becoming an entrepreneur, complete the webquest for SAE Exploratory hours!