1. The Business Plan
We are starting a new business. We discussed three steps for starting that business.
What was the first step? DEVELOPING A BUSINESS CONCEPT
In developing our business concept what four questions did we ask?
What product is being offered
Who is the customer
What benefit you are providing
How you get the product to the customer
What was the second step in starting our new business? TESTING THE CONCEPT
We tested our new business concept by conducting a what? Feasibility Analysis
What questions do we ask when conducting a feasibility analysis?
Are there customers who want what we have to offer
Can the business be profitable
We filled out a competitive grid.
What we have been doing up to this point us research to help us start our business.
This research is going to help us write a business plan. The business plan is the third step to starting your new business.
Can anyone tell me why it is important to write a business plan? Discuss responses

2. Steps to Your New Business
Develop Business Concept
Test the Concept in the Market
Create a Business Plan

3. Objectives
Define a business plan and the role it plays in starting a new business
List, and describe parts of a business plan

4. Step 3: The Business Plan
Document that describes a new business

5. Why a Business Plan? To obtain financing
To serve as a guide for the business
To provide a start-up “blueprint”
Convey your vision for the company
Bankers and other financing sources require a business plan before they will lend anyone money to start a business. Lenders want to know specifically what you plan to do and how you plan to do it.
A business plan also serves as a guide for running your business. It forces you to do the research and ensure that all aspect of your business are covered.
Forces you to plan and not leave things up to chance. Successful Entrepreneurs plan

6. What is “vision”? The main concept you have for your business
Keep it broad for changing times
Don’t confuse with a “mission”:
--an achievable goal
If you can’t see where you are going how will you know when you get there?
Your vision is an idea of what your business is, what it will become, and how you will run it.
If your vision changes when something happens then it is not really a vision
A mission is an allotted or self-imposed duty or task. It
Your mission may be to have the top selling products in your category or if your were a gym to become the top rated gym in your community.
Your vision may be to provide the highest quality products in your category or to provide a gym that caters to the whole family.

7. Parts of The Business Plan
Executive Summary
Product Plan
Management Team Plan
Industry/Market Analysis
Operational Plan
Organizational Plan
Marketing Plan
Financial Plan
Growth Plan

8. Executive Summary Brief recounting of the key points
No longer than 2 pages
Read first by lenders
If the executive summary creates excitement or interest people will read the whole plan. The executive summary persuades the reader that his business is going to be a success

9. Product Plan Product offered Unique product features
Additional products (spin-offs) that may come later

10. Management Team Plan Qualifications of you and partners
How to solve missing expertise problems
Advisory Board

11. Industry/Market Analysis
Presents findings of your research
Customers
Competition
Industry
Prospective geographic, economic and demographic data

12. Operational Plan
Process that takes place to get the product to the customer
Product development status
Distribution Channel(s):
direct or indirect

13. Organizational Plan “People” aspect of business Management philosophy
Legal form of company
Key management personnel
Key employment policies

14. Marketing Plan Target market Pricing policy Company image
Marketing strategies
Promotion plan
Marketing budget

15. Financial Plan Forecasts for future of the business
Financial Statement form
Shows business will be financial healthy

16. Growth Plan How business will expand in future New products
New markets
Greater profits

17. Creating The Business Plan
Gathering data
Organizing your data
Setting up a notebook
Writing a draft

18. Sources of information
Small Business Administration
Service Corps of Retired Executive
(SCORE) – see SBA website
Small Business Development Centers
colleges and universities
Chambers of Commerce
Trade Associations

19. Presentation of Business Plan
Cover Page to include:
-name of the company
-the works “Business Plan”
-name of the contact person
-address and phone number of company
Table of Contents and Headings
Supporting Documents
Use color and design as appropriate