BMGT 1391 The Business Plan Unit 1 What Business Do You Want to Start?

Chapter 3 – Creating Business from Opportunity  How do you define your business?  Can you articulate  your core beliefs  your missions  your vision  What is your competitive advantage?

Business Definition  Who will the business serve?  What will the business offer the customers?  Tangible  Intangible  How will the business provide offerings?  Buying, developing, manufacturing product  Identifying customers – selling to them  Producing & delivering product or service  Getting payment

Business Definition  The Offer  What you’re selling  Pricing  Target Market  Who you’re selling to - specific, precise  Focus of marketing efforts  Production & Delivery Capability  How to produce and deliver

What Sort of Organization Do You Want?  Core Values  Ethical & moral philosophy & beliefs  Decision-making guiding principles

What Sort of Organization Do You Want?  Mission  Passion for business  Commitment to customer satisfaction

What Sort of Organization Do You Want?  Vision  Broader – more comprehensive  View of future  Compelling across the organization  OC’s – to be the best community college in the nation  See Pages 95-96

Mission Statements    

What Sort of Organization Do You Want?  Culture  Shaped by leadership  Determined by actual practices

Competitive Advantage  Strategy for beating the competition  Six Factors QualityPrice LocationSelection ServiceSpeed/turnaround

Competitive Advantage  Large & growing market  Competition makes a profit  Competition is succeeding but not a barrier  Product/service solves problems  Competitive pricing Research – check out the competition

The Most Chocolate Cake Company Example  Business Definition page 102  Competitive Advantage page 103  Comparative Analysis page 104

Competitive Strategy  Definition + Competitive Advantage  Must be sustainable  Tactics  Specific “hows”

Feasibility  Define Unit of Sale page 106  Cost of Goods Sold  Gross Profit

Business Value  Asset Valuation  Book  Adjusted book  Liquidation  Replacement

Business Value  Earnings Valuation  Historical  Future w/current owner  Future w/new owner  Cash Flow Valuation Projected future cash flow/time value of $

Assignment  BizBuilder Business Plan Questions pg 116  Executive Summary  Name  Products/services  Mission, Vision, Culture  Mission statement includes competitive advantage, strategy and tactics  Vision  Core beliefs/culture  Plan to be socially responsible