Developing a Business Plan Cameron Stevenson

Business plan’s can help with many things in a business ranging from financial progress to how to manage your business. It can possibly make or break your business.

Why a Business Plan? Why a Business Plan? Why a Business Plan? Why a Business Plan? Inside a Business Plan Inside a Business Plan Inside a Business Plan Inside a Business Plan Creation of a Business Plan Creation of a Business Plan Creation of a Business Plan Creation of a Business Plan

Why a Business Plan? What is a Business Plan? What is a Business Plan? What is a Business Plan? What is a Business Plan? Purposes of a Business Plan Purposes of a Business Plan Purposes of a Business Plan Purposes of a Business Plan Importance of a Business Plan Importance of a Business Plan Importance of a Business Plan Importance of a Business Plan

What is a Business Plan? Document describing all steps to opening and operating a business It: Describes what business will produce Describes what business will produce How to produce it How to produce it Who will buy product/service Who will buy product/service

What is a Business Plan Cont. Explains who will run the business Explains who will run the business Who will supply its goods Who will supply its goods How to gain customers How to gain customers Provides detailed financial information Provides detailed financial information

Purpose of a Business Plan Explains ideas behind your business Explains ideas behind your business How product/service will be sold How product/service will be sold Sets objectives and describes how to achieve them Sets objectives and describes how to achieve them Describes background and experience of manager/owners Describes background and experience of manager/owners

Importance of a Business Plan Shows all aspects of business Shows all aspects of business May help secure financing May help secure financing Helps communicate the idea to others Helps communicate the idea to others Tool for managing business Tool for managing business

What Goes Into a Business Plan? There are seven elements History and Background History and Background History and Background History and Background Goals and Objectives Goals and Objectives Goals and Objectives Goals and Objectives Products or Service Products or Service Products or Service Products or Service Form of Ownership Form of Ownership Form of Ownership Form of Ownership Management and Staffing Management and Staffing Management and Staffing Management and Staffing Marketing Marketing Marketing Current and Projected Financial Statements Current and Projected Financial Statements Current and Projected Financial Statements Current and Projected Financial Statements

History and Background Describe how you came up with your idea It can lead to: Investors Investors Lenders Lenders Others understanding how the business will operate Others understanding how the business will operate

Goals and Objectives Should outline Short term goals Short term goals Medium term goals Medium term goals Long term goals Long term goals Describes your vision of where you want your business to be.

Product or Service Explain How products/service is different from others How products/service is different from others Industry Industry Industry Location Location Location

Industry Should include: External factors affecting your business External factors affecting your business Growth potential of the industry Growth potential of the industry Economic trends of the industry Economic trends of the industry Technology trends that may affect it Technology trends that may affect it Forecast industry growth Forecast industry growth

Industry Cont. To find information use: Government documents Government documents Articles Articles Books Books Internet Internet Be sure to name all sources

Location Lenders want to know where your business will be Lenders want to know where your business will be Crucial Factor in success Crucial Factor in success Sloe to/In an area of demand for your product/service Sloe to/In an area of demand for your product/service

Form of Ownership Provide information relevant to your form Provide information relevant to your form Who are the partners Who are the partners How many shareholders How many shareholders Important because: Each legal form has an effect on your business Each legal form has an effect on your business

Management and Staffing People who manage are critical to success People who manage are critical to success Best business plan will fail if managers are not capable Best business plan will fail if managers are not capable Should Show you and employees have: Should Show you and employees have: Maturity Maturity Experience Experience Common sense Common sense

Marketing Explain Who your prospective customers are Who your prospective customers are How large the product is for your product/service How large the product is for your product/service How you plan to enter that market How you plan to enter that market Also list advantages your company has over others

Current and Projected Financial Statements Identify Risk Identify Risk Lender/investors want to know before investing Lender/investors want to know before investing Don’t be afraid to list potential problems Don’t be afraid to list potential problems Financial Statements Financial Statements Must include projected statements Must include projected statements Funding Request and Return on Investment Funding Request and Return on Investment Give an idea on how you plan to use the money Give an idea on how you plan to use the money Include how much money you are investing Include how much money you are investing

Additional Elements of the Business Plan Businesses that have a license would include legal issues section Businesses that have a license would include legal issues section Ask yourself what should you know about a business Ask yourself what should you know about a business

Creating an Effective Business Plan Research Business Plan Research Business Plan Research Business Plan Research Business Plan Put Your Plan Together Put Your Plan Together Put Your Plan Together Put Your Plan Together Sample Business Plans Sample Business Plans One One One Two Two Two Three Three Three

Researching the Business Plan Print Resources Print Resources Print Resources Print Resources Online Resources Online Resources Online Resources Online Resources People Resources People Resources People Resources People Resources Additional Resources Additional Resources Additional Resources Additional Resources

Print Resources Public libraries have books on entrepreneurship Public libraries have books on entrepreneurship Books Books Marketing Marketing Financing Financing Hiring and Managing a Staff Hiring and Managing a Staff Purchasing a Business Purchasing a Business Operating a Franchise Operating a Franchise Business Plan Business Plan

Print Resources Cont. Magazines Magazines Small Business Ownership Small Business Ownership Government Documents Government Documents Publications issued by SBA Publications issued by SBA Other federal agencies Other federal agencies

Online Resources SBA web site SBA web site Online magazine articles Online magazine articles Online books Online books Entrepreneurship and small business sites Entrepreneurship and small business sites

People Resources Counselors from Small Business Development Center Counselors from Small Business Development Center Workshops Workshops Service Corps of Retired Executives Service Corps of Retired Executives

Additional Resources Local Chamber of Commerce Local Chamber of Commerce Small Business Development Centers Small Business Development Centers Trade associations Trade associations Professional business consultants Professional business consultants

Put Your Business Plan Together Introductory Elements Introductory Elements Cover Letter Cover Letter Cover Letter Cover Letter Title Page Title Page Title Page Title Page Table of Contents Table of Contents Table of Contents Table of Contents Statement of Purpose Statement of Purpose Statement of Purpose Statement of Purpose Executive Summary Executive Summary Executive Summary Executive Summary Main Body Main Body Main Body Main Body Appendix Appendix Appendix

Cover Letter Provides more information about a document Provides more information about a document Cover includes: Cover includes: Name Name Business name Business name Address and telephone number Address and telephone number Describe business and its potential Describe business and its potential

Title Page Name of company Name of company Date Date Owner of company Owner of company Title of owner Title of owner Address and phone number Address and phone number

Table of Contents Listing of material included in publication Listing of material included in publication Shows reader what each page cover Shows reader what each page cover Accurate Accurate In order In order

Statement of Purpose Describes why you want a loan and your plan Describes why you want a loan and your plan No more than one to two paragraphs No more than one to two paragraphs

Executive Summary One to two pages One to two pages Describes business concepts Describes business concepts Communicate what is unique about your idea Communicate what is unique about your idea Include sales, cost, and profit projections Include sales, cost, and profit projections

Executive Summary Cont. Identify needs Identify needs State amount interested in borrowing State amount interested in borrowing Written after business plan completed Written after business plan completed Use most important points from business plan Use most important points from business plan

Main Body Include the seven elements Include the seven elements Additional elements you find necessary Additional elements you find necessary Short and to the point Short and to the point No unnecessary information No unnecessary information Charts and tables Charts and tables

Appendix Supporting evidence not included in body Supporting evidence not included in body Resume Resume Personal financial statements Personal financial statements Income tax returns Income tax returns Copies of large sales contracts Copies of large sales contracts Letters or recommendation Letters or recommendation Legal documents Legal documents

A business plan is vital to a business. Be sure to take time and be careful when creating one.