The Business Plan- Creating and Starting the Business

Planning Business Plan What is the business plan? Always being updated What is the business plan? Like a road map Who should write the business plan? Advice Resources

Scope and Value of Business Plan Three Perspectives Entrepreneur Customer Investor Depth and detail Advantage to entrepreneur

Business Plan First Draft Evaluating Groups Presenting the Plan Suppliers Customers Capital suppliers Investors Presenting the Plan

Information Needs Three major areas Market information Operations Market size National/local trends Operations Location Manufacturing Raw materials Equipment Labor skills Space Overhead Financial Benchmarks

Business Plan Using the Internet Resources

Writing the Business Plan Introductory Page Basic information Executive Summary Length Introduce business concept Key concepts Facts, where needed Exit strategy?

Writing the Business Plan Environmental & Industry Analysis Environmental Economic Regulatory Technological Social Industry Analysis What is the market? Industry demand Competition

Writing the Business Plan Description of Venture Mission statement Key elements of products or services Location and size Personnel and office equipment Background of entrepreneurs History of venture

Writing the Business Plan Production Plan Subcontractors In-house

Writing the Business Plan Operations Plan Marketing plan 4 P’s Market research for forecasting Organizational plan Assessment of Risk Financial plan Three statements Appendix

Using & Implementing the Business Plan Using the Plan Guide through the first year Is planning necessary? Contingency plans Implementing the Plan Inventory control Production control Quality control Sales control Disbursements Updating

Why Businesses Fail Goals are unreasonable Goals are immeasurable Lack of entrepreneurial commitment Lack of experience with type of business No sense of potential threats or weaknesses No customer need was established