1. Unit 3.1: Understanding the Usefulness of a Business Plan
Entrepreneurship
Unit 3.1:
Understanding the Usefulness of a Business Plan

2. Understanding the Usefulness of a Business Plan
Students will be able to:
Describe purposes of a business plan
List common components of a business plan
Identify available sources for business plan information

3. “If I know what business I want to start, why do I need a business plan?”

4. Purposes of a Business Plan
#1. To plan and set objectives of business
#2. To convince others to invest in your business

5. Purpose of a Business Plan
#1. To plan and set objectives of
business
• Organizes and analyzes critical data
• Describes products/services
• Identifies customers and markets
• Determines if can meet financial goals

6. Purpose of a Business Plan
#2. To convince others to invest in your
business
• Bankers
• Investors
• Partners
• Potential Management

7. Common Components of a Business Plan
Business plans can be written as a short 10-page prospectus or can be upward to 50 pages or more, depending on the complexities of the business. However, all business plans should contain several common elements . . .

8. Eight Common Components of a Business Plan
Goals and objectives of your company – a.k.a. Mission Statement
Company description – Includes history and background of idea
Market and competitive analysis
Products/Services you will offer
– Includes operational plan

9. Eight Common Components of a Business Plan
Form of ownership and organizational plan
Management and staffing
Marketing plan
Current and projected financial statements

10. Available Sources for Business Plan Information
Chamber of Commerce
Small Business Development Centers
Free one-on-one assistance
Workshops
SCORE (Service Corps of Retired Executives)
Volunteers time to help young entrepreneurs
SBA (Small Business Administration)
Also offers financial assistance
Gives special assistance to women, minorities, and the physically challenged
Trade Associations

11. More Available Sources for Information
Publications
Magazine articles, newspapers, books
Internet sites for small business and entrepreneurs
Professional business consultants
Other Government agencies
Division of Commerce

12. Understanding the Usefulness of a Business Plan
Let’s Review:
Describe purposes of a business plan
List common components of a business plan
Identify available sources for business plan information