1. Entrepreneurship Week 2 the complete Business Plan

2. General Outline for Business Plans
Executive Summary
Business Overview [You will do as plan part 1]
Marketing Plan [You will do as plan part 2]
Risks [You will do in final presentation]
Operations Plan [You will do as Part 3]
Management [You will do in final presentation]
Financial Plan [You will do as plan part 4]
Offering (if seeking investors)

3. Executive Summary The Company – your name and location
The product – what will you create or sell?
Market potential – how many customers are there?
Operations Plan – how will you make your product?
Distinctive Competency – what makes your business special?
Financial Plan – how will you make money?

4. Business Overview Business Description
Distinctive competence – what makes this business special? [In Business Plan part 1 you will review 3 competitors to see if you can be special.]
Achievements to date – what have you done so far? Research you have conducted. Product testing you have done. Sample sales. [In Business Plan Part 1 you will create a survey to learn more about your customers]

5. Marketing Plan Advantages of your product Market definition
Market size
Market strategy
Competitors
Sales plan

6. Risks Imitation risk Production risks Personnel/leadership risks
Legal risks
Experience limits

7. Operations Plan
Initial work – set up
Production Plan
Growth Plan

8. Management
Advisory Board
Executive Team
Management Team
Employees

9. Financial Information
Payment Terms / policies Warranties Financing sources Financing plan

10. New Child’s Toy Business Overview
Business Description - I plan to create a new toy for small children – a talking camel.
Distinctive competence – While there are many other toys available for children, few include animals from this region.
Achievements to date – I have conducted a survey of customers. I found mothers like the idea of having a regional animal for their children to play with.

11. New child’s Toy Marketing Plan
Advantages of your product – Few other regional toys are available.
Market definition – I will sell on-line to the people of Oman.
Market size – 4 million people live in Oman
Market strategy – I will focus on mothers of small children
Competitors – Large international companies have lots of toys for sale.
Sales plan – I will recruit mothers to sell to other mothers. I will pay the saleswomen a commission on each sale.

12. New Child’s toy Risks
Imitation – It is possible other toy manufacturers will also start offering more regional animal toys.
Production risks – I am relying on a company in China to make the toys.
Personnel/leadership risks – I have never owned such a business before
Legal risks – we must be careful if children get injured by these toys
Experience limits – I have no business experience

13. New Child’s Toy Operations Plan
Initial work – set up – I need to create a model camel. It should include the size, the appearance, and the materials used to cover the animal. I intend the camel to “speak,” so I will need to record a series of comments for it to make, in both Arabic and English.
Production Plan – The camel will be manufactured in Shanghai by a small company that makes toys for other companies. Initially I will order one thousand of the camels. They will ship them to me through the Port of Muscat.
Growth Plan – If sales are good, I will order more camels. I will also expand to other regional animals like the Gemsbok.

14. New Child’s toy Management
Advisory Board – My father has run a successful business for 23 years. I will use him as an advisor.
Executive Team – I will be the president of this company.
Management Team – I will manage the business.
Employees – I will find mothers who wish to help sell the toys on commission. I do not have plans for any other employees at first. As the business grows, I may hire one person to help.

15. New Child’s Toy Financial Information
Payment Terms / policies – We will accept cash and bank cards. I have contacted a bank about this process. Warranties – We will give all money back if a customer does not like the toy. Financing sources – I plan to borrow 5,000 OMR from my father. I will ask Bank of Muscat for a loan of 7,000 OMR. Financing plan – I will ask that the bank loan be paid back over 36 months.

16. New Child’s Toy Financial Information
Cashflow for my business: I expect to sell 100 toy camels each month. My cost for each camel is 2.5 OMR. I will sell each camel for 5.0 OMR per cup. Here is my cashflow for the first year:

17. Toy Business – cashflow analysis Monthly - Buy 100 camels (2
Toy Business – cashflow analysis Monthly - Buy 100 camels (2.50) – sell 100 camels (5.0)
Month 1
2 –
3 – 4 5 6 7 8 9 10 11 12
Office
100
 100
Commissions
C.O.G.S.
 250
250
Total costs
450
Revenue
 500
500
Profit/(loss) 50
Year profit/ (loss)
150
200
300
350
400
550
600

18. Toy Business Financial Information
Breakeven analysis for my business: I expect to sell 100 camels each month. My cost for each camel is 2.5 OMR plus 1 OMR sales commission I will sell each camel for 5.0 OMR My profit on one camel is 1.5 OMR Total fixed costs for first year – 12*100 (Office costs) = 1200 OMR / Profit on one camel (1.5 OMR) = 800 camels to sell to cover all costs (break even)

19. Business Plan Practice
Business Description
Distinctive competence – what makes this business special? [In Business Plan part 1 you will review 3 competitors to see if you can be special.]
What makes any business special? Find 5 ways to be special.

20. Business Plan Practice
Marketing
Advantages of your product
Sales plan
How would you tell the world about your new business? Provide 4 cheap approaches.

21. Business Plan Practice
Operations
Initial work – set up
Production Plan
Growth Plan
What are 4 things almost every business has to do to start?

22. Business Plan Practice
Financing
Payment Terms / policies
Warranties
Financing sources
Financing plan
How do you determine how much to charge for a product?

23. Omani Photobook example Business Overview
Business Description - I plan to create a book of Omani photographs that I can sell to tourists. Distinctive competence – There are many such books, but my photos will be joined by historical descriptions of the places.
Achievements to date – I have conducted a survey of customers. I found they like the pictures I have taken and are interested in the history of the places.

24. Photobook example Marketing Plan
Advantages of your product – I will have historical information with my pictures.
Market definition – I will sell to tourists
Market size – 250,000 people visit Oman every year
Market strategy – I will focus on tourists who come to historical sites
Competitors – I have found 12 other picture books about Oman
Sales plan – I will set up a website and meet with managers of tourist hotels and tour companies.

25. Photobook example Risks
Imitation – It is possible other people will make similar books.
Production risks – It may be expensive to get the book made since it will have many photographs.
Personnel/leadership risks – I have never published a book before.
Legal risks – I must make sure I get permission to take the pictures
Experience limits – I have no business experience

26. Photobook example Operations Plan
Initial work – set up – I will need six months to take all the pictures and to do the historical research. Production Plan – I need to find a publishing company that has good experience publishing picture books. I will work with them to arrange the materials for publication. I will order 200 copies of the book. Growth Plan – If this book is successful, I can publish additional volumes.

27. Photobook Example Management
Advisory Board – My father has an interest in local history. He can advise me on historical information.
Executive Team – I will be the owner of this company.
Management Team – I will manage the business.
Employees – I will not need any employees.

28. Photobook example Financial Information
Payment Terms / policies – We will accept cash and bank cards. I have contacted a bank about this process. Warranties – We will give all money back if a customer does not like the book. Financing sources – I plan to borrow 15,000 OMR from my father. I will ask Bank of Muscat for a loan of 10,000 OMR. Financing plan – I will ask that the bank loan be paid back over 36 months.

29. Photobook example Financial Information
Cashflow for my business: I expect to sell 20 books each month. My cost for each book is 6 OMR I will sell each book for 15 OMR Here is my cashflow for the first year:

30. Photobook – cashflow analysis Monthly Buy 20 books for 6 OMR – sell 20 books for 15 OMR3 4 5 6 7 8 9 10 11 12
Equipment
100
Travel 20
C.O.G.S.
120
Total costs
140
Revenue
300
Profit/(loss)
(120)
(20)
160
Year profit/ (loss)
(140)
(160)
(180)
(200)
(220)
(60)
260
420
580
740

31. Photobook example Financial Information
Breakeven analysis for my business: I expect to sell 20 books each month. My cost for 1 book is 6 OMR. I will sell 1 book for 15 OMR. My profit on one book is 9 OMR Total fixed costs for first year is 20* 12 (travel costs) (equipment) = 250 OMR / Profit on one book (9 OMR) = 27.7 books to cover all costs (break even)