1. Aspects of a Business Plan

2. Objectives To contrast management and leadership styles.
To analyze the communication that occurs within and among businesses.
To identify and examine the parts of a business plan.

3. Main Menu Management & Leadership Internal vs. External Communication
The Business Plan

4. Management & Leadership

5. Three Management Styles
Delegating
Participating
Telling

6. Delegating Management characteristics include:
to trust employees’ work ability
to have a high workload
to be confident
Works best when employees:
are willing to do the job
know how to do the job
Employees need:
low level of support
low level of guidance

7. Participating Management characteristics include:
to involve the group
to facilitate teamwork
Works best when employees:
have the ability to do the job
receive a high amount of support
Employees need:
high level of support
low level of guidance

8. Telling Management characteristics include: Works best when employees:
to be a micromanager
to be a teacher
to be a facilitator
Works best when employees:
are not willing to do the job
are not able to do the job
Employees need:
high level of support
high level of guidance

9. Three Leadership Styles
Autocratic
Democratic
Laissez faire

10. Autocratic Leadership characteristics include: Should be used when:
to be driven by authority
to tells others what to do
to limit discussions and new ideas
to limit the group teamwork
Should be used when:
time is limited
group skills and knowledge are lacking
group is not acquainted with each other
Should not be used when:
group has a strong sense of teamwork
spontaneity is desired
members have skill and knowledge

11. Democratic Leadership characteristics include: Should be used when:
to involve the group
to promote a sense of teamwork
to ask before telling
Should be used when:
time is available
team is motivated
group has some degree of skills or knowledge
Should not be used when:
group is unmotivated
group has no skill or knowledge
group has conflicts among themselves

12. Laissez Faire Leadership characteristics include: Should be used when:
to give little or no direction
to give opinions only upon request
to have no “in charge” position
Should be used when:
group has a high degree of skill and motivation
group has a strong sense of teamwork
group has a familiar routine
Should not be used when:
group has no sense of team
group has a low degree of skill and knowledge
group needs to be told what to do

13. Traits of a Good Leader Include: hard working assertive decisive
courageous
logical
trustworthy
solves problems
self-confident
listens
speaks effectively
motivated
understanding
respectful

14. Internal vs. External Communication

15. Internal Communication
Occurs within an organization
Flows horizontally or vertically
horizontally
between employees on the same level, coworkers
also known as lateral communication
vertically
between subordinates and superiors
downward communication travels from supervisor to subordinate
upward communication travels from subordinate to supervisor

16. The Grapevine Is the most widely used internal communication system
Is an informal system where:
communication flows rapidly
information is often inaccurate or needs clarification

17. External Communication
Occurs between an organization and people outside of the organization
Flows through a public relations person or a manager
Examples:
press releases
interviews
publicity and promotion

18. The Communication Process
communication channels:
spoken
written
nonverbal
barriers
barriers
SENDER
RECEIVER
message
feedback
encodes message
decodes message

19. The Communication Process
Consists of these five steps:
The sender encodes a message
The sender selects a channel and sends the message
The receiver decodes the message
The receiver provides feedback
The sender and receiver remove or minimize any barriers blocking effective communication

20. Sender Encodes Encoding When organizing message Goal
is when a sender selects and organizes message to be sent
When organizing message
select words to clearly convey message
ensure nonverbal signals match verbal message
Goal
to make sure the message received is as close as possible to the message sent
Sender selects channel with the least barriers

21. Sender Selects Channels
With the least barriers:
nonverbal communication
two-way
examples include: facial expression, eye contact, body language, hand gestures
spoken communication
examples include: informal conversations, interviews, telephone conversations
one-way
examples include: speeches, oral reports, intercom announcements, voice mail
written communication
examples include: letters, memos, reports, press releases, , facsimiles

22. Receiver Decodes Decoding When interpreting the message, the receiver:
is when the receiver breaks down the message received and interprets it
When interpreting the message, the receiver:
considers both verbal and nonverbal messages
prevents distortion
considers whether or not the two messages match

23. Receiver Provides Feedback
is the response to the sender’s message the receiver provides
can be verbal and/or nonverbal

24. Sender & Receiver Clarify
If the message received does not match the message sent
the sender must modify or adjust the message for understanding
the receiver must give appropriate feedback
The process should continue until the message is clear to sender and receiver

25. Barriers to Effective Communication
Physical and mental distractions
interruptions
noises
preoccupation with other matters
developing a response rather than listening
poor timing
Differences between speaker and listener
age
education
culture
experiences

26. Barriers to Effective Communication
Speaker traits
unclear message
lack of sympathy for listener
distracting nonverbal characteristics
suspect motive
Listener traits
poor listening skills
not open to new and different ideas
lack of empathy for speaker
negative feelings about the speaker
low interest level

27. The Business Plan

28. A Business Plan
Must be developed by anyone interested in starting a business
Is a road map of where the business will be going
Is a written proposal describing a prospective business to potential investors and lenders
Should:
convince investors and lenders the business will be profitable
identify necessary legal procedures for start-up
establish month-to-month steps to profitably operate the business

29. A Business Plan Includes five sections: Executive Summary
Business Description and Analysis
Organization and Marketing Plan
Financial Plan
Supporting Documents
Business
Plan

30. Executive Summary Highlights proposed business Describes:
products and/or services to be offered
type of ownership
the skills and experiences being brought to business
the uniqueness and strengths of the business in all areas
market and competition analysis
Highlights financial data
Should be no longer than two pages
Should convince the audience to read the rest of the plan

31. Business Description & Analysis
Includes details such as:
business type
business philosophy
product description
self-analysis
trading area analysis
market segment analysis
analysis of potential location

32. Business Philosophy Includes:
mission statement: the purpose of the organization
vision statement: where an organization is headed in the future and should capture the long-term picture of what the organization will become
personal philosophy of management: how management will organize, motivate and communicate with employees

33. Self-Analysis Describes details concerning the business’s:
education and training: the level of expertise the owner, managers and employees have and how it will enable success
strengths and weaknesses: elements which should be taken advantage of and elements which must be avoided or properly managed
personal development plan: the plans for the growth of the business

34. Trading Area Analysis
Discusses where the business will operate, including details such as:
geographic, economic and demographic data: area population broken down by characteristics including location, income, age, race, gender, etc.
possible competitors: number and size, strengths and weaknesses, and plans to deal with and overcome them

35. Market Segment Analysis
Defines the business’s target market
the group of customers which the business identifies as most likely to find value in its products and therefore is most important to focus marketing efforts on
Identifies the target market’s needs, wants and buying habits, and how the business addresses these

36. Organization & Marketing Plan
Includes details concerning:
proposed organization
proposed product
proposed marketing plan

37. Proposed Organization
Outlines:
the type of business ownership: number of owners, percentage owned by each and how each is involved
the management profile: identifies managers, their education, prior employment and defining characteristics, their obligations to the business, and the business’s obligations to them
personnel needs and organizational structure: number of employees, functions of each department, and the lines of communication within and among departments

38. Proposed Product
Discusses the business’s products and services including:
suppliers: where raw materials needed for production will come from
manufacturing plans: how and where the product will be made and for what cost
inventory procedures: how the business will handle and store products which are ready to be sold

39. Proposed Marketing Plan
Describes strategies for the activities which will communicate value to customers
branding, packaging, promotions, advertising, public relations, etc.
Identifies plans for pricing policies
base price ranges, discounts, sales, etc.
Describes the sales strategies which will be used
sales force, projected sales volume, etc.

40. Financial Plan Include these details: sources of capital
personal sources
external sources
projected income and expenses
personal financial statement
start-up costs
business income
business expenses
income statement(s)
balance sheet
cash-flow statement

41. Supporting Documents Concerning business communication include:
letterhead and business cards for correspondence with employees and customers
list of potential communication barriers with employees and customers
employee rules and regulations designed to prevent and help resolve conflicts
list of potential liaisons developed with other organizations within the community
explanation of the benefits of community involvement

42. Supporting Documents Regarding marketing include:
sample fliers
advertisements
company newsletters
Of legal and miscellaneous nature include:
certificates
licenses, tax requirements
codes
sample policy and procedures manual

43. Resources
U.S. Small Business Administration
Sample Business Plan from Bplans.com

44. Acknowledgements
Production Coordinators Krista Scott Amy Hogan Graphics Editors Jennifer Donaldson Daniel Johnson Production Manager Geoff Scott
Technical Writer
Jessica Odom
Executive Producer
G.W. Davis
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