Entrepreneurial Mindset and Main Topics in a Sustainable Business Plan By Gonzalo Manchego Business Consultant

Entrepreneur vs Employee

How do We See Things?

All or Nothing Thinking?

Entrepreneurs Have a Different Perspective

Entrepreneurs need education but also they need to act

How to get things done?

Tips for Success

Is Debt Good or Bad?

Set your priorities

Time Management is critical

Don’t waste your time

Estimate how much money you need

Business Plan

Execution

What is a Business Plan? A business plan is a written document that describes your business start-up or expansion.

Why You Need to Write a Business plan? To Raise Capital Lenders Investors To plan company growth: Identify markets Strategize ways to grow Identify opportunities and threats Have a clear vision of what to do

Key Sections of the Business Plan Cover Page Executive Summary Company Description Products & Services Market Analysis Production & Operation Plans Management Financial Statements Appendix

Executive Summary Max 1-2 pages long Why your business idea is feasible? Who will finance your company initial expenses? How will you use this money? Who is in your team? What is your business model? How revenue will be generated?

Company Description What products or services you are planning to sell? Where will your business be located? Is your company: 1) An existing business? 2) Start-up Business? 3) A Franchise? Will your company be a sole proprietorship, partnership, LLC or an S corporation?

Products and Services What is different about your products or services? What is your gross profit margin? How do you know your product or service meet the needs of your target customers? Are there any substantial opportunities for growth? Are your products and services protected? (patents, trademarks, copyrights)

Market Analysis Do you know your customers? ( Age, income, purchasing habits) How are clients reached? Is this a B2C or B2B company? Who is your competition? How would you beat your competition? What are the typical distribution channels? What is the price for your products and services?

Market Analysis Do you know your industry? Is the industry growing or declining? How big is the opportunity? What are the entry barriers? Is the industry labor intensive? Is technology impacting your industry? How?

Production & Operation Plans Is this a brick and mortar operation? Where your firm will be located? Do you need to modify an existing building? How many employees? What is your criteria for hiring? How many hours of operation per day/week?

Management Who will be the key personnel in your company? Will your partner part of the management team? What are your or key personnel management skills or experience? What will your responsibilities? Who will be your professional supporting system? (advisors, accountants, attorneys)

Financial Statements Income statement Cash flow Balance Sheet

Anns Nursery-Projected Income StatementJanFebMar NovDecTotals Income Local Nursery Plant mix 10, ,000 Web Gardner Plant Mix ,000 5,000 57,000 Distant Nursery Plant Mix ,000 10,000 40,000 Total Income 10,000 50,000 25, ,000 Cost of Sales Local Nursery Plant mix 5, ,500 Total Cost of Sales 5,500 29,500 14, ,700 Gross Margin 4,500 20,500 10, ,300 Salaries and Wages Owner's Compensation 4,000 48,000 Salaries 3,000 36,000 Payroll Taxes and Benefits ,010 Total Salary and Wages 7,834 94,010 Fixed Business Expenses Advertising 600 7,200 Legal and Professional Fees 150 1,800 Office Expenses & Supplies 200 2,400 Rent (on business property) 300 3,600 Telephone and Communications 250 3,000 Travel 200 2,400 Utilities 500 6,000 Total Fixed Business Expenses 4,300 51,600 Other Expenses Amortized Start-up Expenses 244 2,933 Depreciation 730 8,757 Interest Commercial Loan ,895 Line of Credit ,548 Taxes Total Other Expenses 1,678 1,743 1,826 1,896 1,826 22,402 Net Income (9,312) (9,378) (9,460) 6,470 (3,461) (16,712)

Anns Nursery - Projected Cash Flow Statement JanFebMar OctNovDecTotals Beginning Cash Balance 3,000 3,046 3,005 Cash Inflows Income from Sales 3,000 10,500 15,000 7, ,100 Accounts Receivable - 3,000 7,000 30,700 28,500 29, ,400 Total Cash Inflows 3,000 6,000 10,000 41,200 43,500 36, ,500 Cash Outflows Investing Activities New Fixed Assets Purchases Inventory Addition to Bal.Sheet Cost of Sales - 5,500 25,500 20,000 29, ,200 Operating Activities Salaries and Wages 7,834 94,010 Fixed Business Expenses 4,300 51,600 Taxes Financing Activities - Loan Payments 1,346 16,151 Line of Credit Interest ,548 Line of Credit Repayments ,900 9, Dividends Paid Total Cash Outflows 13,480 19,050 19,137 41,154 43,541 43, ,509 Cash Flow (10,480) (13,050) (9,137) 46 (41) (6,676) (36,009) Operating Cash Balance (7,480) (10,050) (6,137) 3,046 3,005 (3,670) Line of Credit Drawdowns 10,480 13,050 9, ,670 60,509 Ending Cash Balance 3,000 3,046 3,005 3,000

Anns Nursery - Balance Sheet Base PeriodEnd of Year One Assets Current Assets Cash 3,000 Accounts Receivable - 37,500 Inventory 30,000 Prepaid Expenses 8,800 5,867 Total Current Assets 41,800 76,367 Fixed Assets Real Estate-Land 100,000 Buildings 30,000 Leasehold Improvements 15,000 Equipment 5,000 Furniture and Fixtures 2,000 Vehicles 20,000 Total Fixed Assets 172,000 Less: Accumulated Depreciation - 8,757 Total Assets 213, ,609 Liabilities and Owner's Equity Liabilities Accounts Payable - 14,500 Loan Payable 33,800 30,169 Mortgage Payable 50,000 49,064 Vehicle Loans 15,000 11,580 Line of Credit Balance - 36,009 Total Liabilities 98, ,321 Owner's Equity Common Stock 115,000 Retained Earnings - (16,712) Total Owner's Equity 115,000 98,288 Total Liabilities and Owner's Equity 213, ,609

Appendix Resumes of key personnel Sales agreements Partnership agreements Past tax returns Bids Contracts