Foundation Communities Community Tax Center

I. Introductions II. Overview of Course III. Why Develop a Business Plan? IV. Strategic Planning – A Brief Overview V. Components of Your Business Plan  Your Plan’s “Curb Appeal”

 Summary of your business and the future you hope to create  Realistic but conveys energy and optimism  Step by step plan to achieve your goals  “A goal is a dream with a deadline” – Steve Smith

 Clarifies direction for you and your team  Foundation for raising capital  A way to track progress of your business  Protects your financial future

GOALS RESOURCES CONSTRAINTS Success Occurs at the Intersection of: Goals, Constraints, and Resources

GOALSCONSTRAINTSRESOURCES Own My Own Business Financial Find Money: Savings/Equity Borrow, etc. “Bootstrap” Legal: Permits, Licenses etc. Become informed Connect with SBDP Staff Talent/Education/Ability Take Courses Hire Talent Work Hard EnvironmentalMitigate, Choose Another Site

 Takes 40 + hours to complete, 20 – 30 pages maximum  Be concise; less is more  Appearance counts – easy to read, professional

 Cover Sheet  Table of Contents  Executive Summary  Company Overview  Product and Service Description  Market Analysis  Marketing Sales Strategy  Internet Strategy  Management & Personnel Team  Financial Projections  APPENDIX

 Introduces your business to prospective funders  Keep it clean and simple  Full legal name of business  Location: Address, Street, City, State, Zip  Telephone numbers and addresses  Main contact person(s)

 Road map for prospective Funder or Investor  Statement about you  Organized  Visionary  Structured

 Write this section last  One section that everyone will read  Must capture and hold interest of reader  Encapsulates the entire Business Plan  Shows clarity of your goals  Who you are  What you want  Where you are going

 Who You Are  What You Do (Products & Services)  For Whom (Customers)  Why (What your Customer wants)  “It’s not what you sell, it’s what you stand for” – Roy Spence

Satisfy our Customers by providing fresh, tasty snack products throughout all segments of our business

 Provides information on your company including where you’ve been  How your company fits into your industry and marketplace  Your growth potential  Economic trends that are favorable to your company

 Sole Proprietorship  General Partnership  Limited Partnership (LP)  Limited Liability Partnership (LLP)  Limited Liability Company (LLC)  Corporations  C Corporation  S Corporation

 Specifics on what your business does  Service Industry  Product Sales  NIC/SIC Code (  Competitive Comparison  Pricing Strategy

 Market Analysis  Marketing and Sales Strategy  Internet Strategy  Marketing is the process of creating and retaining customers in large enough numbers to be profitable

 Market Segmentation –who will buy your products  Define target market strategy  How current market is underserved or not served effectively  Competition & buying patterns  Define a unique niche within the existing marketplace

 Science of planning for and executing a promotional campaign  Develop marketing strategy  Product  Price  Place  Promotion  Budget

 Sell products or information only  Internet sales integrated with inventory  Website  Viral Marketing / Facebook

 Experience  Maturity  Vision  Drive  Leadership

 INTERNAL  Yourself  Partners (if Applicable)  Key Staff (If Applicable)

 EXTERNAL  CPA: with Small Business Experience  Attorney: With Small Business Experience  Financial Planner: with Small Business Experience  Board of Directors

 Start Up Costs  Break Even Analysis  Projected Profit and Loss  Projected Cash Flow – The Lifeblood of Your Business!

The point at which a businesses is neither making a profit nor experiencing a loss

Costs that generally remain the same month to month and are not dependent upon the number of Sales. What you would have to pay regardless of whether you had any customers walk in.

 Personnel (with exceptions)  Lease/Mortgage  Utilities  Debt Financing  Insurance

Costs that vary directly with: the number of units sold, or the number of clients served

 Designer Bags  Fixed Costs  Variable Costs  Variable Income  Break Even  Profit

 Shows the effects on Cash of operating and Financing Activities  Indicator of Ability to  Generate Positive Cash Flows  Pay Liabilities  Pay Dividends  Could indicate need for additional Financing

 Provides a ‘snapshot’ of a business’s financial position at a given point in time  Assets: What a business Owns  Liabilities: What a business Owes  Net Worth (Equity) NET WORTH = ASSETS – LIABILITES

 Cash  Inventory  Receivables  Prepaid Expenses  Plant & Equipment  Office Equipment  Machinery  Land & Facilities  Goodwill

 Current Liabilities  Current Debt  Payables  Credit Cards  Long Term Liabilities  Long Term Debt (Loans)  Payments to Investors  Equity  Paid in Capital  Retained Earnings

1. Cash is King 2. Cash is King 3. Cash is King Class Test

 Spreadsheets (2)  Start up Costs (what are the things I need to get started and how much do they cost?)  12 Month Cash Flow (Detailed Line Item Income and Expense)  Read Sample Plan through a couple of times  highlight and make notes!

 Keep it uncluttered!  Biographies and resumes of key team  Supporting documents  Brochures, flyers, magazine articles  References  Past lenders  Suppliers  Trade creditors

 City of Austin SBDC  Gold Book  Services available through other organizations  Silver Book  Networking Resource Guide for Small Businesses  Bronze Book  Resource directory of local women and ethnic minority professional associations

 Components of a Business Plan  The Planning Process  Researching Target Markets, Demographics, Competitors  Financials: Start Up Costs, Cash Flow, Break Even, Balance Sheet  Relate Business Planning Components to Own Business  Other Resources for Assistance

Questions Comments, Ideas Suggestions or Thoughts? Thank You!