1. Feasibility and Business Planning
2.2 The Business Plan

2. What you will learn . . .
The Business Plan: Your Road Map to Entrepreneurial Success
The Parts of the Business Plan
Common Mistakes in Preparing Business Plans
Sources of Business Plan Information
Packaging and Presenting the Business Plan

3. The Business Plan: Your Road Map to Entrepreneurial Success
Business Plan – a document that describes a new business and a strategy to launch that business.
May reveal problems
Helps ensure that you plan for all aspects of operations
Investors, bankers, potential management and strategic partners

4. The Parts of the Business Plan
May differ in order and name
MUST include a financials section

5. The Parts of the Business Plan
Executive Summary
Management Team Plan
Company Description
Product and Service Plan
Vision and Mission Statements
Industry Overview
Market Analysis
Competitive Analysis
Marketing Plan
Operational Plan
Organizational Plan
Financial Plan
Growth Plan
Contingency Plan
Cover Page, Title Page, Table of Contents and Supporting Documents

6. Executive Summary
A brief recounting of the key points contained in a business plan.
No more than two pages
Include the most important info from each section
Start with a story explaining why it will be a success
May be the only part read

7. Management Team Plan Qualification of you and your partners
Discuss plan to fill any gaps
Partnerships
Advisory boards
Consultants

8. Company Description
Outlines the company’s background information and basic concept
Size
Scope
Type of business
Why you think it will succeed

9. Product and Service Plan
Present the product or service you are offering
Clear and compelling concept statement
Unique features and possible spin-offs
Spin-offs – additional products or services that might exist later

10. Vision and Mission Statements
The guiding principles by which the company functions.
Vision statement – the scope and purpose of a company and relfects its values and beliefs
“To bring happiness to millions.”
- Walt Disney
“To open the world of sports to neighborhood residents.”

11. Vision and Mission Statements, cont.
The specific aspirations of a company, the major goals for which it strives
“To provide equipment to 100 customers by the end of the first year.”

12. Industry Overview Research into the industry
Trends and growth within the industry

13. Market Analysis
The more you understand your customers, the better your chances of success.
Customer profile (use primary and secondary sources)
Determines marketing and sales strategies
Analyzes customers and competition
Contains geographic, economic, and demo data about the site for the business

14. Competitive Analysis
Demonstrates the advantage(s) the business has over competitors
Talk to customers, vendors, suppliers and employees
Websites
Visits

15. Marketing Plan How customers will be aware of the products or services
Includes market niche, pricing, company image, marketing tactics, media plan and marketing budget

16. Operational Plan
All of the processes in the business that result in the production and delivery of the product or service.
Distribution channel – how you will deliver the product or service to the customer.
Direct channel – you deliver directly to the customer.
Indirect channel – sell products to a wholesaler.

17. Organizational Plan The people aspects The legal form of business
The management philosophy
The role and compensation of management personnel and important employment policies.

18. Financial Plan Forecasts for the future of the business
Explains the assumptions made when the forecast figures were calculated
Proves the business will be financially healthy

19. Growth Plan
How the business will expand in the future

20. Contingency Plan The probable risks How to minimize the risks
Changing economic conditions
Lower-than-expected sales
How to minimize the risks

21. Cover Page Company name Address Phone number Web site address
Company logo

22. Title Page Company name Names, titles and addresses of owners
Date the business plan was issued
Name of the preparer

23. Table of Contents & Supporting Documents
Headings and page numbers
Supporting Documents
items
Exhibits
Documentation relevant to the business

24. Common Mistakes in Preparing Business Plans
Projected exaggerated growth levels
Trying to be a Jack-of-All-Trades
Claiming performance that exceeds industry averages
Underestimating the need for capital

25. Sources of Business Plan Information
Small Business Administration (SBA)
Service Crops fo Retired Executives (SCORE)
Small Business Development Centers (SBDCs)
Chambers of Commerce
Trade Associations

26. Packaging and Presenting the Plan
Bind – spiral works
Index tabs to separate sections
Easy-to-read 12-pt. font
Bold subheadings and bullets
Logo at the top of each page
Number each copy
Statement of confidentiality for ready to sign
A statement on the cover prohibiting copying of the plan