1. Athletic Training Management
Chapter 13
Developing a Business Plan

2. Beginning Business plans tell in detail what the business is
Document created to establish management principles to run the business, communicate within the structure and without, and as a basis for future planning
Using the document will enable you to compare the projections of the business with actual accomplishments

3. Beginning Must have a burning desire to reach goals
Some good things about running your own business include
Be your own boss
Effort directly benefits you
Endless challenges and opportunities to learn
Businesses fail
Lack of experience
Insufficient capital

4. Beginning Competition is also a variable Poor location
Overinvestment in fixed costs
Personal use of business funds
Competition is also a variable
Failure to understand market forces can be fatal

5. Before You Start
United States Small Business Administration is a great website to start with at
The first thing to do is decide WHY you want to be in business
Is there a need?
Do you want to try?
Are there sufficient patients to maintain you and your competition?

6. Before You Start
SBA suggests you need to assess whether you will have a business advantage over the competition
Can you deliver superior services?
Can you create a demand?
Know your competition
Establish the legal structure
Restrictions of the type of business and liabilities assumed

7. Before You Start How are earnings distributed?
Sole proprietorship, partnership, corporation
How are earnings distributed?
Salary to owners?
Benefits?
Will part of the earnings be reinvested in better or more equipment
Capital needed for start-up
Will there be a free-standing structure, space in existing building, affiliation?

8. Before You Start Sole proprietorship Equipment Least costly start-up
May share it if sharing space or affiliated
Advantage of affiliation is buying power of a large medical corporation
Sole proprietorship
Least costly start-up
Fees to register business name, license, and possibly certificate of occupancy
Disposal of medical waste
Owners have final and complete authority to make all decisions

9. Before You Start
Business exists until dissolved or death of the owner
Biggest disadvantage is owners have unlimited liability for all debts against the business
Both business and personal assets are at risk
Partnerships are most commonly either general or limited
Standard partnership agreements specify what each partner brings in and has responsibility for

10. Before You Start Corporation is most complex
Partners are generally liable to the extent of their contribution unless proved negligent
Corporation is most complex
Owners have specific shares based on what they put in
No personal liability
Control through a board of directors
Limited liability company is like a partnership with the limited liability of a corporation

11. Business Plan
Outlines five areas at the minimum (see figure 13-1, p 185)
Overview
Marketing plan
Financial plan
Operations
Summary