1. Developing a Business Plan

2. Workshop Goals In this workshop, you will...
Identify the importance of developing a strong business plan.
Explore the ways to use a business plan.
Review the key parts of a business plan.

3. What Is a Business Plan?
A document that outlines your company’s financial, operational, and marketing goals.

4. Audiences for Your Business Plan
Who should/will see your business plan?
What will different audiences do with your business plan?
How will lenders and investors use your business plan?

5. How Lenders and Investors Use Business Plans
Borrowing from a lender with a promise to repay the loan with interest is called “debt financing.”
Getting financing from an investor is called “equity investing.”
Lenders do not typically get any equity or ownership in the company.
Lenders are most interested in ensuring that the business plan is sound and that a borrower can repay the loan.
Investors get a stake of ownership in the company. They may have a say in how the business is run.
Investors typically are interested in scalability, growth potential or acquisition, strength of leadership, and profit.

6. Key Parts of a Business Plan
Executive Summary
Company Description
Management and Organization
Market Research
Product or Service Line
Marketing and Sales
Financial Projections

7. Executive Summary Your company and its employees
Products or services that you sell
Your audience and ideal customer
Your business’s future
Your industry’s future
The executive summary is a basic introduction to your company. It should describe the following:

8. Company Description Key employees Your mission statement
Product or service provided
Why your business is useful to customers
The company description is a high-level description of your company and business model. It should describe the following:

9. Management and Organization
Ownership information
Organizational and legal structure
The board of directors or advisors
The management and organization section should clarify for investors how your company is organized. It should include the following:

10. Market Research A market and industry description Your target audience
A competitive analysis
Legal requirements, restrictions, and compliance
Market research involves conducting research and coming to conclusions about your competitors, your primary target audience, and the market and industry’s potential for growth. The market research section should include the following:

11. Product or Service Line
A detailed product or service description
Product benefits
Unique advantages
Intellectual property or copyrights
Product development stage
Your product or service line describes what your company will offer customers. The product or service line section should include the following:

12. Marketing and Sales Growth strategy Communications strategy
Sales strategy
Marketing is the process by which companies communicate with customer bases to promote their products or services. A sale is a directed activity by which companies sell their product to those bases. The Marketing and Sales section should include:

13. Financial Projections
A current and projected balance sheet
A current profit and loss statement, as well as a projection
Current and projected cash flow
A break-even projection
Historical financial data
Financial projections are just what they sound like: a projection, or a reasonable guess, at how much your business might make based on the market and on previous sales. This section should include the following:

14. Resources SCORE SBDC (Small Business Development Center)
Veterans Business Outreach Center
Women-Owned Businesses

15. Remember...
Summary
A strong business plan is a written document that outlines the financial, operational, and marketing goals for your company.
Business plans are used by lenders and investors to assess your company’s value.
Each part of a business plan helps to tell your business’s story.
Take advantage of local resources and others to help you develop your own business plan.