Why A Business Plan! Jerry Pradier, AInstIB Of Progressive Business Development Network, LLC Presented by

Uses of a Business Plan  To acquire funding  To attract partners  To train and motivate employees  To guide management  To define and refine the business concept  To win the MARKETING WAR

The most important role of any business owner is to market the business! The most important tool for marketing is THE BUSINESS PLAN!

Marketing The process of planning and executing the [creation], pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. - AMA

Importance of Planning Story of the night Cross-country

Plans help you respond to change Importance of Planning

Quick planning saved the day! Importance of Planning

Proper Planning Leads to Success  Have a vision (end state)  Know your mission  Establish your goals (strategies)  Create Objectives (tactics)  Perform Market Research (Know your enemy)  Create Financial Plan (logistics) Inchon

Faulty Planning Creates Failure  Failure to plan  Not using your plan  Not updating your plan  Ignoring the landscape Waterloo

Half the unhappiness in the world is due to the failure of plans which were never reasonable, and often impossible. - Edgar Watson Howe

The Entrepreneur as Leader  Visionary  Motivator  Director  Trainer  Manager

Common Questions  Who should plan?  What is the difference between planning for a big and small business?  How does planning help management?  Who should write the plan?  How can I know all the answers?  How often should I plan?  What if I never complete the plan?  Why does it fail?  Correct the problem or issue

Planning Benefits 6.Develops proactive attitude & practice 7.Tracks performance 8.Stimulates future development 9.Attracts capital, partners, employees 10.Improves chances of success

Planning Benefits 1.Focuses on entire business 2.Asks important questions 3.Clarifies and communicates goals 4.Develops priorities 5.Improves management decisions

 Create a Vision (ID the end state)  How will your company look in the future?  What will say about you?  What will your company be if it is all that it can be? “A computer on every desk, MS Windows on every computer”-MS “Communities investing in success for ALL students!”-DoDEA How To Plan

 Create a Vision  Define the Mission  A statement that expresses the purpose, business and values of the organization. Must be applicable to all components (parts, members, divisions, stakeholders) of the organization. If the values are not explicitly stated, they must be, at least, Implied in what the organization does. Should be practical and short enough to be memorable

How To Plan  Create a Vision  Define the Mission  Set Goals & Objectives

Short-term Goal: To become a millionaire within 12 months Objectives: 1.Work hard everyday 2.Find a good bank 3. Save as much money as I can Goal Setting

Correct Goal Setting Short-term Goal: To become a millionaire within 6 months Objectives: 1. Identify 11 banks within 35 miles of GJ to case by 5 Aug 2005 (Pradier) 2. Select the five most vulnerable banks and create their floor plans and operational schedules by 30 Aug 2005 (Pradier) 3. Interview and hire three accomplices: A driver, a safe cracker, and a lookout by 15 September 2005 (Pradier) 4. Plan five robberies within a two-day period by 30 Nov (Driver) 5. Order plane ticket to Argentina by 5 December (Lookout) 6. Rob Banks and get out of the country, 24 & 25 Dec 2005 (All)

How To Plan  Create a Vision  Define the Mission  Set Goals & Objectives  Analyze the Market  Is there a market?  Who is your competition? Where are they? What is their market share? What are their strengths & weaknesses How can you capitalize What are your SWOT?

How To Plan  Create a Vision  Define the Mission  Set Goals & Objectives  Analyze the Market  Assess your Finances  Personal tax statements  Income Statements  Cash Flow Statements  Balance Sheet  Pro-forma Income and Cash Flow

Plan Act View Results Measure Results Compare Plan to Actual Explain Delta Make Adjustments When To Plan

Once you say you are going to settle for second, that's what happens to you. - John F. Kennedy

The difference between running a business and ruining a business is "i". - Frank Tyger

Questions?