1. Do I Need A Business Plan?
Coalition to Support Iowa’s Farmers
November 17, 2016
Ames, Iowa

2. What is a Business Plan Roadmap A formal statement of business goals
Reasons they are attainable
Plans for reaching them
Likely will contain background information about the organization or team attempting to reach those goals.

3. Why Prepare a Business Plan?
Forces you to look at the whole business
Focuses attention on important questions
Helps clarify and communicate your goals and objectives
Becomes a means of assigning priorities
Becomes a framework for daily decision making, and better management
Look at business in objective manner
Serves as feasibility study
Defines present status and future possibilities
Helps you prepare for success
Can be a strong reality check
Often required by lenders
Helps identify strengths and weaknesses
Only useful if you use it. 90 % of new businesses fail in first 2 years due to lack of planning
Provides information needed to communicate with others
Write it yourelf

4. Why Prepare a Business Plan?
Helps maintain a “proactive” business attitude
Serves as a benchmark to track performance
Stimulates development of new/future business opportunities
Becomes a tool to access capital, acquire business partners, attract employees
Having a ROAD MAP increases your chance of success
Look at business in objective manner
Serves as feasibility study
Defines present status and future possibilities
Helps you prepare for success
Can be a strong reality check
Often required by lenders
Helps identify strengths and weaknesses
Only useful if you use it. 90 % of new businesses fail in first 2 years due to lack of planning
Provides information needed to communicate with others
Write it yourelf

5. Tips for Creating a Business Plan
Create a vision for your company
A budget is not the same thing as a plan
Know your customers
Know your competition
Be prepared to take risks
Before you get into the details, look at the big picture. Develop your mission statement and define goals and priorities.
A budget is the product of many elements.
Creating a business plan isn’t about avoiding risks, it is understanding risk.

6. Tips for Creating a Business Plan
Get a second opinion (and third, etc.)
Expect the unexpected
Don’t forget what makes you unique.
What’s the point
Don’t skip the plan
Before you get into the details, look at the big picture. Develop your mission statement and define goals and priorities.
A budget is the product of many elements.
Creating a business plan isn’t about avoiding risks, it is understanding risk.

7. Components of a Business Plan
Cover Page
Georges Fish Farm
Comprehensive Business Plan for Success

8. Components of a Business Plan
Cover Page
Executive Summary
First page of your plan, summarizes entire document, write last

9. Executive Summary Description of company’s history
Company’s objectives / goals / mission statement
Description of goods or services
What market you will compete in
What is your competitive advantage
Projected growth
Describe key management
Funding requirements
Where did company come from
---
What differentiates

10. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents

11. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents
Description of Business
First page of your plan, summarizes entire document, write last

12. Description of Business
What Type of Business Is It
Status – Start-up, Expansion, Merger
Legal Description of Business
History of Business
Products and/or Services Offered
Market Analysis
Sole proprietorship, LLC, corp., etc
Where did company come from and why – need? Opportunity?
Include competitive advantages, challenges such as government regs, packaging, pricing, new products,
Local, national international, niche? Size of market and where is it, what % do you need?, growth potential,
Target markets, How, print, internet, radio, billboards, direct mail, trade shows, alliances
Why are you located there? Market, raw materials/ financial benefits.
Know who your competition is, what your competition is doing
Personnel is everything, passion

13. Market Analysis & Research
You must learn…
Who
How
Where
What
When
Why
How often
How much

14. Description of Business
What Type of Business Is It
Status – Start-up, Expansion, Merger
Legal Description of Business
History of Business
Products and/or Services Offered
Market Analysis
Marketing Plan/Strategy
Sole proprietorship, LLC, corp., etc
Where did company come from and why – need? Opportunity?
Include competitive advantages, challenges such as government regs, packaging, pricing, new products,
Local, national international, niche? Size of market and where is it, what % do you need?, growth potential,
Target markets, How, print, internet, radio, billboards, direct mail, trade shows, alliances
Why are you located there? Market, raw materials/ financial benefits.
Know who your competition is, what your competition is doing
Personnel is everything, passion

15. The “P’s of Marketing”
Product
Price
Promotion
Placement
People

16. Description of Business
What Type of Business Is It
Status – Start-up, Expansion, Merger
Legal Description of Business
History of Business
Products and/or Services Offered
Market Analysis
Marketing Plan/Strategy
Location
Competition
Management and Operational Team
Sole proprietorship, LLC, corp., etc
Where did company come from and why – need? Opportunity?
Include competitive advantages, challenges such as government regs, packaging, pricing, new products,
Local, national international, niche? Size of market and where is it, what % do you need?, growth potential,
Target markets, How, print, internet, radio, billboards, direct mail, trade shows, alliances
Why are you located there? Market, raw materials/ financial benefits.
Know who your competition is, what your competition is doing
Personnel is everything, passion

17. Management Team Business Background Experience Educational Background
Personal Data
Responsibilities
Salaries and Benefits
Additional Resources
Pertinent to this industry?
Management experience
Formal and informal
Be careful
Who is responsible for what
Industry competitive, benefits 30-40%
Additional resources – insurance, attorneys, accountants, consultants, Small Business Administration, local business information centers, Chamber of Commerce, Universities/ colleges, federal , state and local agencies, WWW, Bankers

18. Description of Business
What Type of Business Is It
Status – Start-up, Expansion, Merger
Legal Description of Business
History of Business
Products and/or Services Offered
Market Analysis
Marketing Plan/Strategy
Location
Competition
Management and Operational Team
Personnel
Sole proprietorship, LLC, corp., etc
Where did company come from and why – need? Opportunity?
Include competitive advantages, challenges such as government regs, packaging, pricing, new products,
Local, national international, niche? Size of market and where is it, what % do you need?, growth potential,
Target markets, How, print, internet, radio, billboards, direct mail, trade shows, alliances
Why are you located there? Market, raw materials/ financial benefits.
Know who your competition is, what your competition is doing
Personnel is everything, passion

19. Personnel Current and Future Needs What Skills Availability
Salaries/Wages
Benefits
How many and what skills, full time/part time

20. Description of Business
What Type of Business Is It
Status – Start-up, Expansion, Merger
Legal Description of Business
History of Business
Products and/or Services Offered
Market Analysis
Marketing Plan/Strategy
Location
Competition
Management and Operational Team
Personnel
Funding through Loans/Investments
Sole proprietorship, LLC, corp., etc
Where did company come from and why – need? Opportunity?
Include competitive advantages, challenges such as government regs, packaging, pricing, new products,
Local, national international, niche? Size of market and where is it, what % do you need?, growth potential,
Target markets, How, print, internet, radio, billboards, direct mail, trade shows, alliances
Why are you located there? Market, raw materials/ financial benefits.
Know who your competition is, what your competition is doing
Personnel is everything, passion

21. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents
Description of Business
Financial Information
First page of your plan, summarizes entire document, write last

22. Financial Information
Projected Financial Statements
Income Statements
Cash Flow Statements
Balance Sheets – Current Cash Position
Assumptions
Break Even Analysis
Sources and Uses
Projections – use industry averages and tweak from there, a lot of research is required, cost analysis, market opportunities, use Small Business Development Centers
Income Statements – Profit and Loss Statements
Cash Flow Statements – Receipts and Disbursements
Balance Sheets – Current Cash Position and owners equity some business 1.5 – 2 x annual receipts
Assumptions
Capital Costs – land buildings, equipment
Start-up or one-time expenses – legal fees, licenses
Define Unit production and selling costs, cost of sales,
Monthly sales for period of time – selling swim wear, sweet corn, snow blowers, etc.
Estimate fixed expenses, rent, salaries, marketing expenses,
Inventory both incoming and outgoing
Credit policies, 30 day net.
Income taxes

23. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents
Description of Business
Financial Information
Supporting Documents
First page of your plan, summarizes entire document, write last

24. Supporting Documents Resumes Credit information Letters of Intent
Letters of Support
Leases, Purchasing and Marleting Agreements
Legal Documents
Demographics
Resumes of management
Quotes or estimates
Credit
LOI

25. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents
Description of Business
Financial Information
Supporting Documents
Summary
First page of your plan, summarizes entire document, write last

26. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents
Description of Business
Financial Information
Supporting Documents
Summary
Resources
First page of your plan, summarizes entire document, write last

27. Summary
Tie Up Any Loose Ends
Operational Tool

28. Components of a Business Plan
Cover Page
Executive Summary
Table of Contents
Description of Business
Financial Information
Supporting Documents
Summary
Resources
First page of your plan, summarizes entire document, write last

29. Writing a GOOD Business Plan
Create a Vision
Be Honest
Document Financial Projections
Court Your Customers
Respect your Competition
Be Willing to Take Risks
Get Other’s Opinions
Expect the Unexpected
Remember What Makes Your Business Unique
Continuously Revise Old Goals and Set New Ones
Create a Business Plan and Follow It
Outline a clear vision and set of values and build upon that
Use industry info, personal experience
Your customer is right, he is king and treat him as such
Competition can be source of info
Risk is not a bad word AS LONG AS it is preceded by the word “Calculated”, Understand and manage risk
There is experience in all fields – use it
Have contingency plans for everything – Emergency Action Plans, adapt for changes
What makes you successful?

30. Thank You Outline a clear vision and set of values and build upon that
Use industry info, personal experience
Your customer is right, he is king and treat him as such
Competition can be source of info
Risk is not a bad word AS LONG AS it is preceded by the word “Calculated”, Understand and manage risk
There is experience in all fields – use it
Have contingency plans for everything – Emergency Action Plans, adapt for changes
What makes you successful?