1. How does a well written business plan affect the future of a business?
The Business Plan
How does a well written business plan affect the future of a business?

2. The Business Plan What is it?
A business plan is a written document that describes all the steps necessary in opening and operating a successful business.

3. The Business Plan Purpose of a business plan Idea behind your business
Product or Service
How produced and sold
Specific objectives
How you expect to achieve
Backgrounds and Experiences of those running the business

4. The Business Plan Why is it important? Think about all aspects
Secure Financing
Start up costs/risks
Communicate Ideas to others
Overall management

5. 7 Elements of a Business Plan
History and background
Has another company been successful in this market?
What is your background, history in business
Goals and objectives
Outline your short-term, medium-term, and long-term goals.
Future

6. 7 Elements of a Business Plan
Products or Services
What products will you offer?
How do they differ from what is already on the market?
Why would customers buy your product or service?

7. 7 Elements of a Business Plan
Products or Services continued…
What industry will you operate in?
Is there a lot of competition?
Is there potential for growth?
What are current trends?
How about technology?
***You will have to conduct research to answer these questions. Include your sources in your business plan.

8. 7 Elements of a Business Plan
Products or Services continued
Location
Form of Ownership
Provide details relevant to your form of business.
Do you have partners? Who are they?
Will you have shareholders? How many?

9. 7 Elements of a Business Plan
Management and Staffing
Who will run your company?
Why are they/you qualified?
Marketing
Who are your prospective customers?
How large is the market for your product?
How will you enter the market?
How will you deal with your competition?

10. 7 Elements of a Business Plan
Current and Projected Financial Statements
Risks and Solutions
Examples include competitors cutting prices, costs exceeding projections, and no demand for your product/service.
Financial statements
New Businesses
pro forma financial statement – estimate of revenues and expenses

11. 7 Elements of a Business Plan
Current and Projected Financials continued...
Existing Businesses
Current financial and projected statements
Funding request and ROI (return on investment)
How much to borrow
How you intend on using it
Include money you are already investing in company

12. Additional Elements
All business plans must include the seven elements; however, additional elements may be required
Licensing requirements
Special legal considerations

13. The Business Plan Summarizer
What are the 7 elements of a business plan?
What role does research play in making a business plan?

14. Research Print resources Online resources
Books on marketing, financing, hiring, and managing a staff
Magazines devoted to small business and specific industry
Government documents
Online resources

15. Research People resources Additional resources
Local chamber of commerce
Small business development center
Trade associations

16. Helpful Hints Short and to the Point for Lenders
Use charts and tables to illustrate your point
People like visuals 