1. Developing a Plan
Chapter 2

2. The Business Plan
Section 2.1

3. Goals Identify the elements of a business plan
Describe the proposed business situation
Explain the organizational and marketing plan
Discuss the purpose of the financial plan

4. Elements of a Business Plan
Document that describes all aspects of the business
Necessary to seek investors or loans
Tool for the business owner
Blueprint for operating and expanding the business
3 Main Elements
Proposed Business Situation
Organizational and marketing plan
Financial plan

5. Proposed Business Situation
Type of business
Description of the business
Reasons why you want to open
Include facts of statistics if you can
Survey of potential customers
Business Philosophy
Outlines the beliefs about how the business will be operated
Info about customers, employees, vendors
Business role within the community (Wal-Mart low prices)

6. Type of Products Self-Analysis Trading Area Analysis
Info about various product lines
Specifics about products and reasons for choice of products
Self-Analysis
Outlines business owner’s education, training, work experience, strengths, and weaknesses
Trading Area Analysis
The geographic location of your business
Geographic, demographic, and economic information about the population
Info located from local or state government; census data

7. Market Segment Analysis
Takes analysis from trading area analysis and applies it to the specific target market you are trying to reach
Define target market
Marketing Segmentation
Analysis of Potential Location
Rent or buy
Proximity to competition

8. Organizational and Marketing Plan
Organizational Plan
Describes how business will be organized
Form of business ownership
Start-up steps
Personnel needs
Job descriptions
Organizational Chart
Marketing Plan
Pricing policies
Promotional plans

9. Organizational Plan Type of ownership Start-up steps Planned personnel
Sole proprietorship, partnership, corporation
Start-up steps
Determine name for your business
File a DBA (Doing business as) with local government
Obtain necessary licenses or permits
Planned personnel
Job Descriptions: written statement that defines the particular requirements of the job

10. Marketing Plan Pricing Policies Promotional Activities
Can determine success or failure
Factors when considering price
Cost of merchandise
Operating expenses
Competition
Supply and demand
Desired Profit
Promotional Activities
Advertising, Sales Promotions, Public Relations, Personal Selling
CREATIVE!

11. Financial Plan
Most business obtain financing through loans from financial institutions
Must assure banks that business will be successful
Elements
Sources of capital (money needed to finance operations)
Projected Income and Expenses
Repayment Plan

12. Hiring Employees
Section 2.2

13. Goals Explain the factors for determining personnel needs
Describe the procedures for creating a hiring plan
Identify criteria for hiring employees

14. Determine Personnel Needs
Three factors to consider
The organizational chart
Hours of operation
Size of the store

15. Organizational Chart
Visually shows the various positions within the company as well as the lines of authority
Example
Advisor
(Teacher)
Manager
Senior Assistant Manager
Junior Assistant Manager

16. Hours of Operation
The more hours of operation the more employees needed
Meijer vs. boutique in Birmingham

17. Size of the Store Larger the store the more employees needed
Do not want a store too crowded
Customers have hard time moving around

18. Creating a Hiring Plan
Outlines the process that will be used to hire employees for the business
Includes steps when hiring new employees
Questions that should be addressed
Recruitment Methods
Application Procedures
Interview Guidelines

19. Recruitment Methods “Help Wanted” Advertisements Signs
Checking out the Competition
Word-of-mouth
Online Job Banks

20. Application Procedures
Resume
Job Application
Stored in a file for six months to a year

21. Interview Guidelines Makes hiring fair and ethical
Two main reasons for guidelines
Ensure that all applicants are asked the same questions
Ensure that applicants are not asked illegal questions that could lead to allegations of discrimination
Cannot ask how old someone is
You can ask if they are of legal working age

22. Criteria for Hiring Employees
Factors that you may want to consider
Educational level
Previous work experience
Knowledge, skills, and abilities

23. Preparing for Opening Day
Section 2.3

24. Goals Explain the importance of preparing for opening day
Identify the steps needed to prepare for opening day

25. Importance of Opening Day
Creating Order
Should be spent interacting with customers
Trial run
First Impressions
Must be positive
Freshman/transfer students
Friendly and build customer loyalty

26. Opening Day Tasks Administrative Tasks Obtaining licenses and permits
Setting up a bank account
Creating a filing system
Filing any paperwork
Creating Security guidelines

27. Opening Day Tasks Merchandising Tasks
Arrange store in appealing manner
Plan-o-gram: a map that shows where each piece of merchandise should be located within the store
Divide workers into teams
Clothing/gift sales
Food Sales
Cashiers
Loss Prevention

28. Opening Day Tasks Promotional Tasks Advertising Public Relations
Cost-effective and reach target market
Public Relations
Grand opening celebration
Sales Promotions
Personal selling
Must be familiar with products!

29. Opening Day Tasks Personnel Tasks Recruiting job applicants
Hiring employees
Completing new hire paperwork as required by law
Training employees
Creating a work schedule
Setting up a payroll system (grades)

30. Assignments Review Questions Put it in Action Matching Multiple Choice
Short Answer
Put it in Action
Questions for business plan
Hiring Employees
Plan-o-gram
Organizational Chart