Business Administration & Management Mr. Bernstein Elements of a Sound Business Plan April 14, 2015
Business Administration & Management Mr. Bernstein Business Plan Critical document that describes all aspects of the business venture Business Description Organizational and Marketing Plan Financial Plan The plan outlines the purpose of the business, guides decisions, and may be instrumental in obtaining capital
Business Administration & Management Mr. Bernstein Business Description Type of business and statement of purpose Business Philosophy Types of Products Self-Analysis – Personal strengths and weaknesses Geographic “Trading” Area Market Segment Analysis Potential Locations
Business Administration & Management Mr. Bernstein Organizational and Marketing Plans Type of Ownership Start-Up Steps Planned Personnel with Job Descriptions, including Management Marketing Plan – the Four P’s: Products (also in Business Description) Pricing Place (also in Business Description) Promotional Activities
Business Administration & Management Mr. Bernstein Financial Plan Capital Requirements Sources of Capital Projected Income and Expenses Repayment Plan
Business Administration & Management Mr. Bernstein Common Mistakes in Business Planning Undefined Target Market Poor Research Ignoring Competition Unrealistic Financial Projections (ie Projecting Exaggerated Growth Levels) Underestimating Capital Needs Inconsistencies within Plan