1. The Components of A Business Plan & How to Get Started
The Business Plan
The Components of A Business Plan & How to Get Started

2. Outline Start-up business statistics Questions to ask!
Components of a Business Plan

3. Source: US Dept. of Commerce, Bureau of the Census
Starting A Business
According to the Small Business Administration (SBA), 70% of new businesses last at least 2 years, and about half survive five years.
Source: US Dept. of Commerce, Bureau of the Census

4. Starting A Business

5. Starting A Business

6. Before You Start Writing
Questions To Ask
Before You Start Writing
What niche or need will my business fill?
What services or products will satisfy it?
Is my idea practical?
Who is my competition?
What is my business’ uniqueness over existing firms— our “competitive advantage”?
Can I deliver a better quality service?
Can I create a demand for my business?

7. Example: Niche Product
Cheerleading Shoe
Normal White Shoe

8. Components of A Plan Executive Summary Business Description
Mission Statement & Core Values
Competitive Analysis
Management Team Plan
Development & Production
Marketing Plan
Financial Plan
Appendices

9. Executive Summary
Description: Quick overview of your business plan. It gives investors/lenders a quick window to explore your business plan. Summary must be clear, concise, and attention grabbing. It appears first in a business plan, but is usually the last piece completed. Keep it at 1-2 pages.
Parts: Include a short summary of all business components, highlighting the most important and persuasive parts of each

10. Executive Summary
REMEMBER– more often than not, people will rely solely on your executive summary and the information written in it to determine the viability of your business.
*Add in a killer “pitch” (1-2 sentences) at the end to persuade your reader that your business will be a success

11. Business Description
Description: A broad overview of the business concept. It should be 1-2 paragraphs in length.
Questions: What will the business do? What type of business will it be? What goods/services will be produced? Why is it unique? Who are the customers? How will products/services be sold? Where will the organization be located?
Parts: Business description (name, product/services provided and industry), Mission, Vision and Core Values

12. Usually 1-2 sentences in length, starting with an action verb: “To…”
Mission Statement
Defines the specific goals of a company and outlines what the company hopes to accomplish. Everything the company does should align with the mission statement.
Usually 1-2 sentences in length, starting with an action verb: “To…”

13. Example: Mission Statement
“To inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”

14. Usually 1-2 sentences, also beginning with an action verb: “To…”
Vision Statement
If the goals of the company are stated in the mission statement, your vision statement describes what your business will ideally look like in the future when you achieve that goals or those goals.
Usually 1-2 sentences, also beginning with an action verb: “To…”

15. Example: a Vision
“Our vision is to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online.”

16. Core Values
These are the ethical guidelines for an organization/company. They articulate the character qualities a company stands for and encourages. Explains either what is or is not acceptable in a company.
Can be a bulleted list!

17. Example: Core Values
Our values serve as a compass for our actions and describe how we behave in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, it's up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well

18. Competitive Analysis
Description: Provides the reader a clear landscape in which the company is serving. Proves that there is a genuine need in the market for your companies’ products/services. Demonstrates substantial market size & shows industry trends that support your company’s strategy (but do not describe strategy until later)
Points To Cover:
-Statistics & Historical data of the industry nature and growth potential
-Major competitors (summarize their operations & products/services)
-Nature of the industry
-Forecast of the industry
-Government regulations that influence the industry
-Your company’s position within the industry
-Potential obstacles for success

19. Management Team Plan
Description: Describes management team/staff members and how business ownership is structured. Your readers will be looking to see who is on staff within management and the skills of management and staff relevant to running the company.
Parts:
-Ownership Structure (organizational chart)
-Internal Management Teams or Departments
-External Management Resources
(advisory board or professional services aka banks, lawyers, IT consultants, and etc.)
-Human Resources
-Necessary skills and resumes of each manager
-Compensation

20. Development & Production
Description: Describe what goods/services will be provided by your company. Expand on what needs you will be addressing in the market and how your offerings are better than a competitors.
Then, explain how your product will be obtained or made. This segment will fluctuate depending on what you are offering (service/product: retail or manufacturing):
-Retail should share on where products will be purchased for resale.
-Manufacturers consider the following questions
Manufacturer Questions: How products will be designed? Technology to manufacture and/or design products? Where is production being completed (in-house or manufactured outside)? What equipment being used? Location of production? Layout of facilities? Units to be produced? Quality Control?

21. Marketing Plan
Description: This piece is a written strategy describing how you plan to attract customers to buy products/services.
Points to Cover:
Target Market: future Customers & profile,
demographics, customer description
2. Pricing: price for your product and competitor pricing
3. Distribution: explain product/service distribution to
consumers
4. Advertising & Promotion Plan: websites, media, sales,
publicity, tradeshows

22. Marketing Plan
List the Four Ps:

23. Financial Plan
Description: Detail your financial needs and repayment plan for loans/debts. Explain the cost of start-up and beginning operations. State from where funding will be acquired (grants/loans/etc). Parts to Include: Salaries Utilities Location/Building Distribution Communications Marketing Materials/Supplies Maintenance

24. Appendices Provide supporting documents to the business plan
EX: News articles, industry data, and surveys of future customers
Polish your paper
-Cover page
-Title page
-Table of contents
-Cite your sources